UNITED SPIRITS, INC.

6 Months Ended

12 Months Ended

Jun. 30, 2019

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 and chief executive officer 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:

	June 30,			December 31,
	2019			2018
Balance Sheets:
Cash and cash equivalents	$	26,694		$	38,793
Intercompany receivable from Iconic (A)		133,394			204,461
Right-of-use asset		78,387			-
Total assets	$	238,475		$	243,254
Accounts payable and accrued expense	$	196,950		$	11,338
Loans payable to officer and affiliated entity		71,115			71,037
Intercompany payable to Bellissima (A)		297,787			335,257
Intercompany payable to BiVi (A)		66,876			56,854
Operating lease liability		78,387			-
Total Liabilities		711,115			474,487
Noncontrolling interest in VIE		(472,640	)		(231,333	)
Total liabilities and stockholders’ deficiency	$	238,475		$	243,153

	Six months ended June 30,
Statements of operations:	2019			2018
Intercompany distribution income (A)	$	4,542		$	3,619
Royalty expense		127,500			-
Officers' compensation		82,000			-
Other operating expenses- net		36,450			9,044
Total operating expenses		245,950			9,044
Net income (loss)	$	(241,408	)	$	(5,425	)

(A)    Eliminated in consolidation

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