Glo-Stick, Inc. In late 2018, Norman Davis, the estranged brother of Mary Davis (the president and chief executive officer of Sunshine Lite-Stick, Inc.), formed a company, Glo-Stick, Inc., to compete with his sister's company, Sunshine Lite-Stick, Inc. Mary Davis was stunned when she learned of her brother's actions to form Glo-Stick at the end of 2018. She had anticipated that competition for her Sunshine Lite-Stick prod-uct would likely appear after five years. Her brother's formation of Glo-Stick would represent real direct competition to Sunshine. Norman Davis had been careful in obtaining a separate patent for the technology needed to develop the Glo-Stick product for his company so as not to violate the patent rights for the Sunshine product. On January 1, 2019, Norman Davis, established Glo-Stick, Inc. with 350,000 shares of Glo-Stick common stock at $1 per share. Glo-Stick raised $350,000 of cash by selling all 350,000 shares to Norman Davis for $350,000 on January 1, 2019. Also, on January 1, 2019, Glo-Stick, Inc., entered into the follow-ing transactions: • January 1—Borrowed $250,000 from a local bank to help the Company finance the business. • January 1—Purchased the Glo-Stick patent from Norman Davis for $120,000 in cash.