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GENERAL BALANCE SHEET CONSIDERATIONS

9 Months Ended

Sep. 30, 2021

General Balance Sheet Considerations

NOTE 3 – GENERAL BALANCE SHEET CONSIDERATIONS

FASB ASC does not require an entity to present a classified balance sheet or mandate a particular order of balance sheet accounts. However, FASB ASC 210-10-05-4states that entities usually present a classified balance sheet to facilitate calculation of working capital.

ASC210-10-05-5 indicates that in the statements of manufacturing, trading, and service entities, assets and liabilities are generally classified and segregated. The FASB ASC glossary includes definitions of current assets and current liabilities for when an entity presents a classified balance sheet. FASB ASC 210-10-45 provides additional guidance to determining these classifications.

Cash and Cash Equivalents

Rules 5-02-1 of Regulation S-X states that separate disclosure should be made of the cash and cash items that are restricted regarding withdrawal or usage. The Company didn’t recognize any restriction on the cash and cash equivalents assets as of September 30, 2021, has $44,342 and $111 as of December 31, 2020.

Current Receivables

FASB ASC 310 states that allowance for credit losses should be deducted from the related receivables and appropriately disclosed. FASB ASC 310-10-50-4 requires as applicable, any unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs to be disclosed in the financial statements. Under FASB ASC 825, fair value disclosure is not required for trade receivables when the carrying amount of the trade receivable is due in one year or less. As of September 30, 2021, the Company had Accounts Receivable of $826,297 and $0 as of December 31, 2020. The Company is not expecting any credit losses.

Accounts receivable aged balances


Company	Current		1 - 30		31 - 60		61 - 90		91 and over		Total
Rogue One, Inc	$	—	$	—	$	—	$	—	$	—	$	—
Human Brands International, Inc		245,988		133,000		—		250		—		379,238
CapCity Beverage, L.L.C		39,065		41,568		5,555		26,192		25,370		137,750
Turasu SPR de RL		13,026		—		49,176		40,215		206,892		309,309
TOTAL	$	298,079	$	174,568	$	54,731	$	66,657	$	232,262	$	826,297

Inventory

Rule 5-02.6 of Regulation S-X requires separate presentation in the balance sheet or notes of the amounts of major classes of inventory, such as finished goods, work in process, raw materials, and supplies. Additional disclosures are required for amounts related to long-term contracts or programs.

Schedule of Inventory
	Finished Products		Supplies		Biological Assets		Total USD
Location
CapCity Beverages, LLC	$	7,276					$7,276
Tequila Armero S.A de CV				94,171			94,171
Industrias Naturales de Tequilas S.A de CV						5,487,607	5,487,607
Sobre Todo Alimentacion		5,976					5,976
Turasu S de PR de RL						1,401,523	1,401,523
	$	13,253	$	94,171	$	6,889,130	$6,996,553

Marketable Securities

In March 2018, FASB released Accounting Standard Update (ASU) No 2018-04, Investments – Debt Securities (Topic 320) and Regulated Operations (Topic 980). This update supersedes FASB ASC 320-10-S55-1 and 320-10-599-1. FASB ASC 810-10-S00-1 is added along with paragraphs 980-810-S45-1. No additional disclosure requirements are listed.

FASB ASC 320-10-50 includes detailed disclosure requirements for various marketable securities, including matters such as the nature and risks of the securities, cost, fair value, contractual maturities, impairment of securities, and certain transaction information. FASB ASC 321-10-50 provides additional disclosure requirements for marketable securities classified as equity securities.

Schedule of Marketable Securities
Issuer	Symbol	As of September 30, 2021
		Quantity	Book Value	Total Equity Value	Market Value p/share	Market Value Equity as of September 30, 2021


Spirits Time International, Inc. (a.k.a. Sears Oil and Gas, Corporation) ¹	SRSG	3,203,846	$1.23	$3,942,362	$1.20	$3,844,615

Rogue Baron, Plc.²	SHNJF	36,247,500	0.096	3,490,500	$0.22	7,829,460
			Total:	$7,432,862		$11,033,306
¹-https://finance.yahoo.com/quote/SRSG/history?period1=1632787200&period2=1633046400&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true

²- https://finance.yahoo.com/quote/SHNJF/history?period1=1632700800&period2=1633046400&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true

Property, Plant and Equipment

Are the long-lived physical assets of the Company acquired for use in the Company’s normal business operation and not intended for resale by the Company. FASB ASC 360, Property, Plant and Equipment states that these assets are initially recorded at historical cost, which includes the cost necessarily incurred to bring them to the condition and location necessary for their intended use. FASB ASC 835-20 establishes standards for capitalizing interest cost as part of the historical cost of acquiring assets constructed by the Company for its own use or produced for the Company by others for which deposits or progress payments have been made.

FASB ASC 210-10-45-4 indicates that property, plant and equipment, should be classified as noncurrent when a classified balance sheet is presented. Under FASB ASC 805-20-55-37, some use rights acquired in a business combination may have characteristics of tangible, rather than intangible assets.

The Company had $ 315,300 (net of $16,870 depreciation) and $ 0 as of December 31, 2020 respectively in Property, Plant and Equipment, all as a consequence of the business combination, and such assets were valued as fair market value, starting in service for the Company as of July 1, 2021.


Account	Balance as Servicing date - June 30, 2021	Depreciation		Net Value as of September 30, 2021
		Expenses 2021-Q3	Accumulated Depreciation as of September 30, 2021


Equipment	$ 51,057	$ 2,546	$ 2,546	$ 48,511
Furniture & Equipment	27,515	1,372	1,372	26,143
Vehicles	253,274	12,953	12,953	240,321
Total	$ 331,846	$ 16,870	$ 16,870	$ 314,976

Other current Assets

Despite of Rule 5-02-8 of Regulation S-X requires that any amount of current assets in excess of 5% of total current assets be stated separately on the balance sheet or disclosed in the notes, Management decided the present the respective breakdown in the following chart:

Schedule of Other Assets
Concept
Prepayments	$	120,000
Security Deposits - Energy company		2,195
Security Deposits - Rent		3,903
Janon Costley		1,250
Creditable paid IVA		129
Creditable paid IEPS		151
IVA pending		42
IEPS pending		410
Total	$	128,080

Other Noncurrent Assets

On September 30, 2021, and December 31, 2020, other noncurrent assets were $0 and $0. The current balance of $0 compared to the balance of $145,000 as of December 31, 2020, is because the Company applied ASC-850-10-05-4, based on the “Amended and Restated Merger Agreement and Plan of Reorganization” dated on June 30, 2021, and then intercompany transactions are offset in both companies, Rogue One, Inc., and Human Brands International, Inc.

Goodwill

The Company besides the Goodwill recognized on the acquisition of Human Brands International, Inc., part of the acquired assets was Goodwill Human Brands International, Inc., recognized on the acquisition of its subsidiaries now part of Rogue One, Inc.

The Company didn’t calculate any adjustment in the Goodwill of the companies listed in the chart below, however the Company will review finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of assets may not be recoverable. If required, recoverability of these assets is determined by comparison of their carrying value to the estimated future undiscounted cash flow the assets are expected to generate over their remaining estimated useful lives. If such assets are considered to be impaired, the impairment to be recognized in earnings equals the amount by which the carrying value of the assets exceeds their estimated fair value determined by either a quoted market price, if any, or a value determined by utilizing a discount cash flow technique.

Schedule of Goodwill
All subsidiaries goodwill
Mezcal Arte	$	294,118
Sobre Todo Alimentacion		655,719
Tequila Armero SA		568,998
Tequila Copter		814,000
Turasu S de PR		2,044,466
Human Brands International, Inc		6,426,939
Total	$	10,804,239

The Company keeping a highly conservative criteria in its asset’s measurement, decreased the goodwill on Turasu S de PR in $ 14,418 against Assets Impairment.

Noncontrolling Interests

Common securities held by the noncontrolling interests that do not include put arrangements exercisable outside of the Company’s control are recorded in equity, separate from the Company stockholders’ equity.

The purchase or sale of additional ownership in an already controlled subsidiary is recorded as an equity transaction with no gain or loss recognized in net income (loss) or comprehensive income (loss) as long as the subsidiary remains a controlled subsidiary.

The following chart reflects the breakdown on noncontrolling interests:


Company Subsidiary		Amount
Mezcal Arte		$144,118
Industrias Naturales de Tequilas S.A de CV		519,185
Tequila Armero S.A de CV		418,719
Sobre Todo Alimentacion S.A de CV		228,515
Tequila Copter S.A de CV		365,767
Turaso S de PR de RL		1,732,692
	Total:	$3,408,995