UNITED SPIRITS, INC.

3 Months Ended

Mar. 31, 2019

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:

	March 31,			December 31,
	2019			2018
Balance Sheets:
Cash and cash equivalents	$	43,506		$	38,793
Intercompany receivable from Iconic (A)		129,932			204,461
Right-of-use asset		89,673			-
Total assets	$	263,111		$	243,254
Accounts payable and accrued expense	$	148,199		$	11,338
Loans payable to officer and affiliated entity		71,036			71,037
Intercompany payable to Bellissima (A)		283,817			335,257
Intercompany payable to BiVi (A)		54,322			56,854
Operating lease liability		89,673			-
Total Liabilities		647,047			474,487
Noncontrolling interest in VIE		(383,936	)		(231,333	)
Total liabilities and stockholders deficiency	$	263,111		$	243,254

	Three months ended March 31,
Statements of operations:	2019			2018
Intercompany distribution income (A)	$	2,075		$	1,119
Royalty expense		63,750			-
Officers compensation		82,000			-
Other operating expenses net		9,028			4,276
Total operating expenses		154,778			4,276
Net income (loss)	$	(152,703	)	$	(3,157	)

(A) Eliminated in consolidation