The accompanying notes are an integral part of these unaudited condensed financial statements.
The accompanying notes are an integral part of these unaudited condensed financial statements.
The accompanying notes are an integral part of these unaudited condensed financial statements.
On August 1, 2022, the Company assigned 7,713,000 of restricted common shares in exchange for in-kind consulting services. The shares were valued at $17,399,632 or $2.22/share. Expenses are recognized over the vesting period. For the three months ended 08/31/22, $362,492 was recognized as expense.
The accompanying notes are an integral part of these unaudited condensed financial statements.
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION AND ACCOUNTING POLICIES
In the opinion of management, the accompanying unaudited interim Condensed Consolidated Financial Statements of LZG International and its subsidiary reflect all adjustments, including normal recurring accruals, necessary for a fair presentation. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosure normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the Securities and Exchange Commission (“SEC”). The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited Condensed Consolidated Financial Statements are read in conjunction with the audited Financial Statements contained in the Company’s Form 10-K for the year ended May 31,2022. The results of operations for the three months’ ended August 31, 2022 are not necessarily indicative of the results to be expected for the full year. The Consolidated Financial Statements as of May 31, 2022 are derived from audited financial statements included in the Company’s Form 10-K for the year ended May 31, 2022.
Organization
LZG International, Inc. (“the Company”) is a Florida company that was incorporated on May 22, 2000. To date, the Company has not paid any dividends and does not anticipate dividends to be paid in the foreseeable future.
On June 17, 2022, the Company entered into a Master Stock Purchase Agreement with two individuals, Yevgeniy Chsherbinin and Victor Nazarov through its wholly owned subsidiary, FB Prime Source Acquisition, LLC to acquire Prime Source, a Kazakhstani corporation and Prime Source’s affiliates consisting of Prime Source Innovation, Prime Source – Analytical Systems, Digitalism, and InFin-IT Solution (together with Prime Source, the “Prime Source Companies”). The agreed upon purchase price of $18,000,000 is payable on a payment schedule.
Fiscal Year
The Company’s fiscal year ends on May 31.
Revenue Recognition
Substantially all the Company’s revenue is derived from contracts with customers for subscription services over a period of time. Contracts with customers are considered to be short-term when the time between signed agreements and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue when services are provided to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. The Company typically satisfies its performance obligations in contracts with customers upon delivery of the services. The Company does not have any contract assets since the Company has an unconditional right to consideration when the Company has satisfied its performance obligation and payment from customers is not contingent on a future event. Generally, payment is due from customers immediately at the invoice date, and the contracts do not have significant financing components nor variable consideration. There are no returns and there are no allowances. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company’s historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimate is made.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
Cost of Revenues
Cost of Revenues primarily include expenses incurred by the Company to host and deliver products through the marketplace and payroll expenses directly to the production of market ready products. Related platform and payment processing fees are recorded in the period incurred. Payroll costs are recognized in the period they were incurred.
Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.
Accounts Receivable
Accounts receivables are recorded at the amount due from customers and do not bear interest. Amounts collected on accounts receivable are included in net cash provided by operating activities on the Statement of Cash Flows. The Company does not have any off-balance-sheet credit exposure related to its customers. The Company evaluates the collectability of its accounts receivables based on collection risks and historical experience. Estimated losses are recorded to the allowance for doubtful accounts and as a general expense. There were no anticipated losses in 2022 and therefore, no allowance for doubtful accounts is deemed necessary.
Inventory
Inventories consist of raw materials, work-in-process, and finished goods. Raw materials and finished goods are valued at the lower of cost or net realizable value, using the first-in, first-out (“FIFO”) valuation method. Work-in-process and finished goods includes the cost of materials, freight and duty, direct labor and overhead. The Company writes down inventory for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. On August 31, 2022, there is no reserve for inventory obsolescence is deemed necessary.
Fair Value Measurement
The fair value hierarchy categorizes the inputs used to measure fair value into three levels, which are described as follows:
| · | Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities |
| · | Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly |
| · | Level 3: Inputs for the asset or liability that are not based on observable market data |
It is not practicable to estimate the fair value of related party loans because there is no established market for these loans and it is inappropriate to estimate future cash flows, which are largely dependent on the Company establishing or acquiring operations at some future point. No financial instruments are held for trading purposes.
Goodwill and Intangible Assets
The Company relies on guidance under ASC 350, Intangibles – Goodwill and Other, to account for intangible assets. Estimated useful lives of amortizable intangible assets are determined by management based on an assessment of the period over which the asset is expected to contribute to future cash flows.
In accordance with U.S. GAAP for goodwill and other indefinite-lived intangibles, the Company tests these assets for impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred. For the purposes of that assessment, the Company has determined to assign assets acquired in business combinations to a single reporting unit including all goodwill and indefinite-lived intangible assets acquired in business combinations.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
The estimated useful lives for each intangible asset class are as follows:
| | Estimated Useful Lives |
AI Technology (Angelina FX) | | 5 years |
Intellagents IT Platform and ecosystem | | 5 years |
FatBrain IT | | 5 years |
IP Technology, Prime Source | | 5 years |
Impairment Assessment
The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. For the year period ended August 31, 2022, the Company recorded no impairments to intangible assets or long-lived assets.
Sales and Marketing
Sales and marketing expenses are expensed and incurred and primarily consist of costs associated with acquiring new clients or selling new products. Expenses include salaries, commissions, online advertising costs as well as outsourced marketing strategy.
General and Administrative
General and administrative expenses consist of costs primarily related to finance operations, human resources, executive management, legal, corporate technology, corporate development, amortization, and certain other administrative costs that are not directly attributed to a product or service.
Research and Development Costs
Research and development costs are expensed as incurred. Research and development costs include external costs of outside vendors engaged to design, test and program IT Technologies. Other research and development activities include salaries and related payroll expenses related to the Company’s research and development activities.
Costs for certain development activities are estimated based on an evaluation of the progress to completion of specific tasks using data such vendor representation. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred.
Use of Estimates
In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date
of the financial statements, and revenues and expenses during the reporting period. Actual results may differ from these estimates.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
Basic and Fully Diluted Income (Loss) Per Share
In accordance with ASC 260, Earnings Per Share (“ASC 260”) the computations of basic loss per share of common stock are based on the weighted average number of common shares outstanding during the periods presented in the financial statements.
The computations of basic and fully diluted loss per share of common stock are based on the weighted average number of common shares outstanding during the periods presented in the financial statements, plus the common stock equivalents, which would arise from the exercise of stock options and warrants outstanding during the period, or the exercise of convertible debentures. As of August 31, 2022, all common stock activity has been included and there were no items considered to be anti-dilutive.
Software Costs
The Company follows ASC 985-20, Costs of Computer Software to be Sold, Leased, or Marketed, whereby costs incurred during the period of planning and design, prior to the period determining technological feasibility, for all software developed to be sold to external users, has been charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development. Purchased software that has reached technological feasibility and that has no alternative use, other than existing licenses or contracts for which it is being utilized, is capitalized at cost and amortized ratably over the term of the underlying contract.
Stock-based Compensation
The Company accounts for stock-based compensation to employees and non-employees in conformity with the provisions of ASC 718, Stock Based Compensation. The Company expenses stock-based compensation to employees and non-employees over the requisite service period based on the estimated grant-date fair value of the awards. The Company accounts for forfeitures as they occur. Stock-based awards are recognized on a straight-line basis over the requisite service period.
Common shares issued to third parties for services provided are valued based on the estimated fair value of the Company’s common shares. All stock-based compensation costs are recorded in expenses in the condensed consolidated statements of operations.
Concentration of Credit Risk
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash. Cash balances are maintained in accounts held by major banks and financial institutions located in the United States. The Company may at times have balances in financial institutions that are more than the federally insured limit of $250,000.
Major Customers
For the three months ended 08/31/22, the Company had two customers that accounted for $1,204,305 and and 49.5% of total sales. The Company expects to maintain this relationship with these customers.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
NOTE 2 – BUSINESS ACQUISITION
On June 17, 2022, the Company entered into a Master Stock Purchase Agreement with two individuals, Yevgeniy Chsherbinin and Victor Nazarov through its wholly owned subsidiary, FB PrimeSource Acquisition, LLC to acquire Prime Source, a Kazakhstani corporation and Prime Source’s affiliates consisting of Prime Source Innovation, Prime Source – Analytical Systems, Digitalism, and InFin-IT Solution (together with Prime Source, the “Prime Source Companies”).
The Company accounted for its acquisition as a business combination using the purchase method of accounting as prescribed in Accounting Standards Codification 805, Business Combinations (“ASC 805”) and ASC 820 – Fair Value Measurements and Disclosures (“ASC 820”). In accordance with ASC 805 and ASC 820, the Company used its best estimates and assumptions to accurately assign fair value to the tangible assets acquired, identifiable intangible assets and liabilities assumed as of the acquisition dates. Goodwill as of the acquisition date is measured as the excess of purchase consideration over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed. The results of operations of the acquired businesses since the date of acquisition are included in the consolidated financial statements of the Company for the three months ended August 31, 2022. The total purchase consideration was allocated to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition, as determined by management. The excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed has been recorded as goodwill. The value of the goodwill from the acquisitions described below can be attributed to a number of business factors including, but not limited to, cost synergies expected to be realized, the intellectual property acquired, and a trained technical workforce.
In conjunction with acquisition, the Company uses various valuation techniques to determine fair value of the assets acquired, with the primary techniques being discounted cash flow analysis, relief-from-royalty, a form of the multi-period excess earnings and the with-and-without valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Inputs to these valuation approaches require significant judgment including: (i) forecasted sales, growth rates and customer attrition rates, (ii) forecasted operating margins, (iii) royalty rates and discount rates used to present value future cash flows, (iv) the amount of synergies expected from the acquisition, (v) the economic useful life of assets and (vi) the evaluation of historical tax positions. In certain acquisitions, historical data is limited, therefore, we base our estimates and assumptions on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. We have engaged outside consultants to assist us with the valuation of our acquisition. As of August 31, 2022, the results of their valuation are not yet available.
The purchase price and purchase price allocation cost of the acquisition completion date follows:
Purchase Price: | | | |
Cash | | $ | 5,723,388 | |
Note Payable | | | 12,000,000 | |
Total Purchase Price, net of Cash Acquired | | | 17,723,388 | |
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
Assets Acquired: | | | |
Accounts Receivable Trade | | $ | 3,653,805 | |
Other Receivables | | | 8,023 | |
Inventory | | | 3,831,736 | |
Other Current Assets | | | 7,171,688 | |
Fixed Assets | | | 94,453 | |
Intangible Assets | | | 1,009,336 | |
Other Long-Term Assets | | | 39,471 | |
Total Assets Acquired | | | 15,808,512 | |
| | | | |
Liabilities Assumed: | | | | |
Accounts Payable | | | 2,686,944 | |
Accrued Expenses | | | 49,456 | |
Deferred Revenue | | | 8,596,996 | |
Other Current Liabilities | | | 2,348,669 | |
Deferred Tax Liability | | | 173,015 | |
Total Liabilities Assumed | | | 13,855,080 | |
Net Assets Acquired | | | 1,953,432 | |
Excess Purchase Price “Goodwill” | | $ | 15,769,956 | |
The excess purchase price has been recorded as goodwill in the amount of $15,769,956. In accordance with U.S. GAAP for goodwill and other indefinite-lived intangibles, the Company tests Goodwill for impairment annually and whenever events or circumstances make it more likely than not that impairment may have occurred. For the purposes of that assessment, the Company has determined to assign assets acquired in business combinations to a single reporting unit including all goodwill and indefinite-lived intangible assets acquired in business combinations. The goodwill is amortizable for tax purposes.
Identifiable intangible assets acquired by the business combination are amortized over the estimated useful lives of the assets as determined by management based on an assessment of the period over which the asset is expected to contribute to future cash flows. The estimated useful life of the identifiable intangible assets is five years
NOTE 3 – REVENUES
Deferred revenue is recorded when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The Company typically sells software and services with a term from one month up to 1 year. Payments may be made by customers in advance, at the time of sale. As such, the company may receive up to 1 year of revenue in advance.
The transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which may include unearned revenue and unbilled amounts that will be recognized as revenue in future periods. The transaction price allocated to the remaining performance obligations is influenced by several factors, including the timing of renewals, the timing of delivery of software licenses, average contract terms, and foreign currency exchange rates. Unbilled portions of the remaining performance obligations are subject to future economic risks including bankruptcies, regulatory changes, and other market factors.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
NOTE 4 – COMMITMENTS AND CONTINGENCIES
(a) Commitments
There are no significant commitments other than those disclosed in this paragraph and presented on the balance sheet. The Company does not lease any office space.
(b) Contingencies
In the normal course of business, from time to time, the Company could be involved in legal actions relating to the ownership and operations of the Company. In management’s opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a material adverse effect on the financial position, results of operations, or liquidity of the Company.
NOTE 5 – GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred losses since inception and has revenue-generating activities that do not exceed operational expenses. Historically, its activities have been limited and have been dependent upon financing to continue operations. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to further develop and market its technology and acquire revenue generating companies.
NOTE 6 – RELATED PARTY TRANSACTIONS
As of August 31, 2022 and May 31, 2022, the financial statements include related party receivables, of $351,146 and $9,925,154, respectively. The stockholders of the related party also own stock in the Company. Of the amount held by the related party, $173,788 represents revenue proceeds from customers that have yet to be reimbursed to the Company at August 31, 2022, ($130,341 at May 31, 2022). The remaining amounts ($177,358 at 08/31/2022 and $9,794,813 at May 31, 2022) represent funds received by the related party on behalf of the Company from investors.
On May 11, 2022, the Company assumed a promissory note from a related party in connection with an asset acquisition. The $3,000,000 note bears interest at 8% per annum and is payable on Demand, no later than January 5, 2023. There have been no payments of principal or interest for the loan as of August 31, 2022. Accrued interest at August 31, 2022 is $71,836.
To assist with the orderly transition of management and operations, the Company entered into a Management Services Agreement with FatBrain LLC, a related party, effective 10/23/21. The Company has retained FatBrain LLC to provide consulting and logistical support when needed to support operating the business for a period of up to two years.
NOTE 7 – NOTES PAYABLE
On June 17, 2022 in connection with the Prime Source Acquisition, the Company issued two promissory notes of $6,000,000 to each of the former owners of Prime Source. Each loan bears interest of 8% and is payable on prescribed dates per a payment schedule. The final payment is due December, 31, 2023. As of August 31, 2022, the remaining balance due is $11,000,000 of which $6,000,000 is considered long term. Accrued interest on August 31, 2022 is $114,667.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
Description | | Current Portion (Due 2023) | | | Long Term Portion (Due 2024) | |
Promissory Note - Yevgeniy Chsherbinin | | $ | 2,000,000 | | | $ | 3,000,000 | |
Promissory Note - Victor Nazarov | | | 3,000,000 | | | | 3,000,000 | |
Total Note Payable | | $ | 5,000,000 | | | $ | 6,000,000 | |
NOTE 8 – LONG TERM INCENTIVE PLAN (LTIP)
On August 1, 2022, the Board of Directors approved the establishment of a Long-Term Incentive Plan (the “Plan”) with 13,838,657 shares of common stock available for issuance. The Plan permits the granting of Nonqualified Stock Options, Incentive Stock Options, Restricted Stock, and Restricted Stock Units. The Plan is intended to provide flexibility to the Company in its ability to motivate, attract and retain the services of Participants who make or are expected to make significant contributions to the Company’s success and to allow Participants to share in the success of the Company. From time to time, the Company may issue Incentive Awards pursuant to the Plan. Each of the awards will be evidenced by and issued under a written agreement.
If an incentive award granted under the Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to the company in connection with an incentive award, the shares subject to such award and the surrendered shares will become available for future awards under the Plan. The number of shares subject to the Plan, and the number of shares and terms of any Incentive Award may be adjusted in the event of any change in our outstanding common stock by reason of any stock dividend, spin-off, stock split, reverse stock split, recapitalization, reclassification, merger, consolidation, liquidation, business combination or exchange of shares, or similar transaction. For the three months ended August 31, 2022, 7,837,672 shares have been assigned and will vest annually over a four-year period starting August 1, 2023. There are 6,000,985 shares available for future grants under the plan.
A summary of the Company’s stock activity and related information follows:
| | # of Restricted Shares | | | Weighted Average Grant Date FMV | |
Balance, May 31, 2022 | | | | | | |
Restricted shares, assigned | | | 7,837,672 | | | $ | 2.22 | |
Restricted shares forfeited | | | - | | | | - | |
Balance, August 31, 2022 | | | 7,837,672 | | | $ | 2.22 | |
Vested and Exercisable | | | - | | | | - | |
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
The restricted stocks vests over a four-year period which coincides with the requisite service period. Share-based expenses total $17,399,632 and are amortized over the vesting period. The expense recognized for the three months ended August 31, 2022, was $362,492. The remaining expenses ($17,037,140) will be amortized ratably over the remainder of the vesting period as follows:
Year ending May 31: | | Amount | |
2023 | | $ | 3,262,431 | |
2024 | | | 4,349,908 | |
2025 | | | 4,349,908 | |
2026 | | | 4,349,908 | |
2027 | | | 724,985 | |
Total | | $ | 17,037,140 | |
NOTE 9 – INCOME TAXES
As of August 31, 2022, the Company has available unused net operating loss carryforwards from its US based entities of approximately $4,922,000 ($1,210,000 at May 31, 2022) which may be applied against future taxable income, and which expire in various years from 2023 through 2040. Due to a substantial change in the Company’s ownership during October 2021, there may be annual limitations on the amount of previous net operating loss carryforwards that can be utilized.
The amount of and ultimate realization of the benefits from the net operating loss carryforwards for US income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the net operating loss carryforwards, the Company has established a US valuation allowance equal to the tax effect of the net operating loss carryforwards and, therefore, no deferred tax asset has been recognized in the accompanying financial statements. The net US deferred tax assets are approximately $1,033,800 and $254,900 as of August 31, 2022 and May 31, 2022, respectively, with an offsetting valuation allowance of the same amount resulting in a change in the valuation allowance of approximately $788,900 and $127,890 for the three months ended August 31, 2022 and for the fiscal year ended May 31, 2022, respectively, (exclusive of effects of Federal tax rate changes).
Deferred tax assets and the valuation account are as follows:
| | August 31, 2022 | | | May 31, 2022 | |
Deferred Tax Asset: | | | | | | |
NOL Carryforward (at 21%) | | $ | 1,033,800 | | | $ | 254,900 | |
Valuation Allowance | | | (1,033,800 | ) | | | (254,900 | ) |
Deferred Tax Assets | | $ | - | | | $ | - | |
A reconciliation of amounts obtained by applying the Federal tax rate of 21% to pretax income to income tax benefit is as follows:
| | August 31, 2022 | | | May 31, 2022 | |
Federal Tax Benefit (at 21%) | | $ | 780,000 | | | $ | 194,000 | |
Valuation Allowance | | | (780,000 | ) | | | (194,000 | ) |
Deferred Tax Assets | | $ | - | | | $ | - | |
On June 17, 2022, the Company, through its wholly owned subsidiary, FB Prime Source Acquisition, LLC, acquired all the stock of Prime Source, a Kazakhstani corporation. At the time of acquisition, the Company inherited a deferred tax liability related to the acquired business. As of August 31, 2022, the deferred tax liability ($183,866) has not been reviewed or recalculated by independent consultants. The Company has not yet made any adjustments to this amount.
LZG International Inc and Subsidiary
Notes to the Condensed Consolidated Financial Statements
August 31, 2022
(UNAUDITED)
The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.
The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of May 31, 2022 and 2021, the Company had no accrued interest or penalties related to uncertain tax positions.
The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended May 31, 2018 through May 31, 2022
NOTE 10 – SUBSEQUENT EVENTS
The Company has evaluated subsequent events through October 14, 2022 which is the date the financial statements were available to be issued and determined that there were no subsequent events or transactions, other than the matters described below, that required recognition or disclosure in the financial statements.
In 2022, the Board of Directors approved the establishment of an Employee Stock Option Plan for its employees. Stock Option awards (incentive and nonqualified) may be issued under the terms of the plan. The Company has reserved 13,838,657 shares of common stock for issuance under the Plan. No written agreement has yet been signed.
On September 22, 2022, the Company entered into a Stock Purchase Agreement to purchase all the outstanding shares of SO Technology, LTD, a UK-based design and technology company creating web and mobile applications for mid-market enterprises. The aggregate purchase price was $2,762,500 and is payable in $1,700,000 cash and 170,000 shares of stock valued at $6.25/share or $1,062,500 total stock value.
In this report references to “LZG International,” “the Company,” “we,” “us” or “our” refer to LZG International, Inc., a Florida corporation
FORWARD-LOOKING STATEMENTS
The U. S. Securities and Exchange Commission (“SEC”) encourages reporting companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “intend,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.