Exhibit #$1$ Excerpts from Information Gathered During Planning $$ Selected financial information to date for BC is shown in Appendix A$.$ Note that the $2022$ numbers are unaudited. $$ Tim noted that in previous year$$s files that the management bonus was based on year$-$end audited net income figures. $$ BC has five manufacturing facilities throughout Canada with locations in Toronto, Halifax, Hamilton, Calgary, and Vancouver. These facilities are responsible for the manufacturing of all of Boots$$ clothing. Finished goods are then all shipped to a centralized warehouse in either Toronto or Vancouver. Delivers are made to customers or Boots$$ own stores from the Toronto and the Vancouver warehouses. $$ Boots currently owns five of its own stores in Ontario in addition to selling to other wholesalers and retailers. $$ Boots is a public corporation with shares widely held. The corporation is controlled by Bob and Doug who each own $26\%$ of the common shares outstanding. Boots generally runs in a relatively simplistic fashion even though its sales are quite significant. A new investor was brought in this year and the investor now owns $10\%$ of the balance of the shares. $$ During last year$$s audit, several errors were found. Most errors were ultimately corrected by the client. One error resulted in the understatement of revenue last year of $$150,000.$ This amount was sent to the error summary. The audit opinion was unmodified. $$ Inventory movements around year end are frequent and significant. Inventory balances are typically even between Vancouver and Toronto, with the other locations having considerably less. $$ BC$$s organizational structure is as follows: o VP$-$Operations $$ Bob and Doug $($also majority Owners$)$ o VP$-$Finance $$ Christine o VP$-$Sales $$ Jon o VP$-$Marketing $$ Brian o VP$-$Operations$/$Human Resources $$ Jeff o VP$-$Computer and Technology $$ Rob $$ Excerpts of conversations and information regarding details of the organization and events this year can be found in Exhibit #$2$