UNITED SPIRITS, INC.

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

NOTE 5. UNITED SPIRITS, INC.

United Spirits, Inc. (“United”) is owned and managed by Richard DeCicco, the controlling shareholder, President, CEO, and Director of Iconic. United provides distribution services for BiVi and Bellissima (see Note 12) and is considered a variable interest entity (“VIE”) of Iconic. Since Iconic has been determined to be the primary beneficiary of United, we have included United’s assets, liabilities, and operations in the accompanying consolidated financial statements of Iconic. Summarized financial information of United follows:

	December 31, 2018			December 31, 2017
Balance Sheets:
Cash and cash equivalents	$	38,793		$	1,181,076
Intercompany receivable from Iconic (A)		204,461			230,226
Total assets	$	243,254		$	1,411,302
Current portion of debt	$	-		$	15,470
Accounts payable and accrued expense		11,338			-
Loans payable to officer and affiliated entity		71,037			71,052
Intercompany payable to Bellissima (A)		335,257			1,376,729
Intercompany payable to BiVi (A)		56,854			88,259
Total Liabilities		474,487			1,551,510
Noncontrolling interest in VIE		(231,333	)		(140,208	)
Total liabilities and stockholders’ deficiency	$	243,254		$	1,411,302

	Years ended December 31,
	2018			2017
Statements of operations:
Intercompany distribution income (A)	$	12,242		$	60,696
Royalty expense		65,000			-
Officers’ compensation		30,000			-
Other operating expenses – net		8,266			15,922
Total operating expenses		103,266			15,922
Net income (loss)	$	(91,024	)	$	44,774

(A) Eliminated in consolidation