Zenergy International Inc. (ZENG)

[Grande25]

Well now you are splitting hairs into the nature of being a subsidiary... and you are wrong. I thought you were making a point about three different companies. What happened to that argument? You've abandoned it now that you understand that Paradigm Global is a division of Paradigm Tactical.

A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made, making accounting much simpler. A sole proprietorship does not have to be concerned with double taxation, as a corporate entity would have to. This is why it benefits Paradigm Tactical to incorporate a subsidiary... these are the "tax purposes" of which are indicated.

A disadvantage of a sole proprietorship is that as a business becomes successful, the risks accompanying the business tend to grow. To minimize those risks, a sole proprietor has the option of forming a corporation. Hence, incorporation under Paradigm minimizes risk and simplifies the tax process.

One last comment. If you talk to anyone from Global Detector they tell you openly they are a subsidiary of Paradigm Tactical. End of story.