EXCELSIS INVESTMENTS INC.

As of September 30, 2019 and December 31, 2018, the Company owed $153,000 and $0, respectively, to an entity controlled by its former Chief Executive Officer and former Chief Operating Officer, which bears interest at 5% annually, unsecured, due on July 18, 2020 and is convertible into shares of common stock at a fixed conversion price of $0.05.

For the nine months ended September 30, 2019 and 2018, we incurred operating expenses of $1,060,027 and $915,767, respectively, and a net loss of $5,426,582 and $377,292, respectively. The operating expenses are costs related to amortization, general and administrative, payroll and professional fees. Operating expenses increased by approximately $144,260 or 15.75%.

Cash used in operating activities for the nine months ended September 30, 2018 consisted of a net loss as well as the effect of changes in operating assets and liabilities as well as adjustments to reconcile net income to net cash used in operating activities. Cash used in operating activities of $336,666 consisted of a net loss of $377,292. The net loss was offset by accretion of discount on convertible notes of $337,627, amortization of intangible assets of $951, change in fair value of make whole expense with related party of $(455,741), gain on settlement of liability of $(23,776), loss on change of fair value of derivative liabilities of $5,087, and share based compensation of $143,466.

For the nine months ended September 30, 2019 and 2018 net cash provided by financing activities was $361,000 and $484,000, respectively. Most cash provided was through convertible debentures and was overset by repayments and financing fees.