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<div style="margin-left: 36pt; width: 540pt"><p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 0pt"><b>1.</b></kbd><kbd style="margin-left: 27pt"></kbd><b>Nature of Operations and Continuance of Business</b> </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000">Cannonau Corp. (the “Company”) was incorporated under the laws of the State of Nevada on April 3, 2007 as Pacific Blue Energy Corp. On April 5, 2010, the Company acquired a 100% interest of Ship Ahoy LLC, a limited liability company in Arizona, in exchange for $300,000 and 1,000,000 common shares of the Company.  This investment was subsequently abandoned by the Company.  The Company is currently developing CBD based products. On August 22, 2019, the Company changed its’ name to Cannonau Corp. to reflect its’ focus on it’s new CBD based products.</p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"><font style="border-bottom: #000000 1px solid"><i>Going Concern</i></font></p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000">These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated no revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. As of March 31, 2020, the Company had minimal revenues and an accumulated deficit of $3,488,111. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for a period of one year from the issuance of these consolidated financial statements. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. </p></div>
<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 0pt"><b>2.</b></kbd><kbd style="margin-left: 27pt"></kbd><b>Summary of Significant Accounting Policies</b> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">a)</kbd>Basis of Presentation and Principles of Consolidation </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are expressed in US dollars. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Ship Ahoy LLC. All intercompany transactions have been eliminated. The Company’s fiscal year-end is December 31. </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">b)</kbd>Use of Estimates </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the recoverability of its long-lived assets, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">c)</kbd>Interim Financial Statements </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The accompanying consolidated
financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial
information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”).
 In the opinion of management, the accompanying financial statements contain all adjustments (consisting of normal and recurring
accruals) necessary to present fairly all financial statements in accordance with GAAP. The consolidated financial statements
herein should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for
the fiscal year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K. Operating results for the
three months ended March 31, 2020 may not necessarily be indicative of results to be expected for any other interim period or
for the full year.</p>
<p style="font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">d)</kbd>Cash and Cash Equivalents </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of March 31, 2020, and December 31, 2019, the Company had no cash equivalents.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">e)</kbd><kbd style="margin-left: 36pt"></kbd>Basic and Diluted Net Loss Per Share </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The Company computes net loss per share in accordance with ASC 260, <i>Earnings Per Share,</i> which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">f)</kbd><kbd style="margin-left: 36pt"></kbd>Financial Instruments  </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">ASC 820, <i>“Fair Value Measurements”, </i>requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><i>Level 1</i></p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><i>Level 2</i></p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><i>Level 3</i></p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The Company’s financial instruments consist principally of cash, accounts payable, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.</p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt"> </kbd></p>
<p style="font: 10pt Times New Roman; margin: 0 0 0 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">h)</kbd><kbd style="margin-left: 36pt"></kbd>Inventory </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><font style="background-color: #FFFFFF">Inventories, which are comprised of finished goods, are stated at the lower of cost (based on the first in, first out method) or market.</font> Inventories consist of CBD based products.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">i)</kbd><kbd style="margin-left: 36pt"></kbd>Reclassifications </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; text-indent: 36pt; color: #000000">Certain prior period amounts have been reclassified to conform to current presentation.</p></div>
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<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">d)</kbd>Cash and Cash Equivalents </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000">The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of March 31, 2020, and December 31, 2019, the Company had no cash equivalents.</p></div>
<div style="margin-left: 36pt; width: 540pt">
<p style="font: 10pt Times New Roman; margin: 0; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">e)</kbd><kbd style="margin-left: 36pt"></kbd>Basic and Diluted Net Loss Per Share </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The Company computes net loss per share in accordance with ASC 260, <i>Earnings Per Share,</i> which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.</p>
</div>
<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin: 0; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">f)</kbd><kbd style="margin-left: 36pt"></kbd>Financial Instruments  </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">ASC 820, <i>“Fair Value Measurements”, </i>requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><i>Level 1</i></p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><i>Level 2</i></p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><i>Level 3</i></p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000">The Company’s financial instruments consist principally of cash, accounts payable, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.</p></div>
<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin: 0; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 0pt"><b>3. </b></kbd><kbd style="margin-left: 27pt"></kbd><b>Stockholders’ Equity</b> </p>
<p style="font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000">On May 21, 2019, the Company issued 100,000,000 shares of common stock to settle $5,000 in debt with a related party.</p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000; background-color: #FFFFFF"><font style="background-color: #FFFFFF">On November 5, 2019, the Company purchased and retired into treasury 15,000,000 Common Shares from Luniel De Beer for $2,000.</font></p>
<p style="font: 10pt Times New Roman; margin: 0; color: #000000; background-color: #FFFFFF"> </p>
<p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000; background-color: #FFFFFF"><font style="background-color: #FFFFFF">On January 23, 2020, the Company executed a 2,000 to 1 reverse stock split.  All share and per share information has been retroactively adjusted to reflect this reverse stock split.</font></p></div>
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<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 10pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">a)</kbd><kbd style="margin-left: 36pt"></kbd>Basis of Presentation and Principles of Consolidation </p>
<p style="font: 10pt Times New Roman; text-align: justify; margin: 0; color: #000000"> </p>
<p style="font: 10pt Times New Roman; text-align: justify; margin: 0; margin-left: 36pt; color: #000000">These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are expressed in US dollars. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Ship Ahoy LLC. All intercompany transactions have been eliminated. The Company’s fiscal year-end is December 31. </p></div>
<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 10pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">b)</kbd><kbd style="margin-left: 36pt"></kbd>Use of Estimates </p>
<p style="font: 10pt Times New Roman; text-align: justify; margin: 0; color: #000000"> </p>
<p style="font: 10pt Times New Roman; text-align: justify; margin: 0; margin-left: 36pt; color: #000000">The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the recoverability of its long-lived assets, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. </p></div>
<div style="margin-left: 36pt; width: 540pt"><p style="font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: -18pt">c)</kbd>Interim Financial Statements </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; color: #000000"> </p>
<p style="text-align: justify; font: 10pt Times New Roman; margin: 0; margin-left: 36pt; color: #000000">The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”).  In the opinion of management, the accompanying financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly all financial statements in accordance with GAAP. The consolidated financial statements herein should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2019, included in the Company’s Annual
Report on Form 10-K. Operating results for the three months ended March 31, 2020 may not necessarily be indicative of results to be expected for any other interim period or for the full year.</p></div>
<div style="margin-left: 36pt; width: 540pt">
<p style="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 10pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">g)</kbd><kbd style="margin-left: 36pt"></kbd>Inventory </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; color: #000000"> </p>
<p style="font: 10pt Times New Roman; margin: 0; text-align: justify; margin-left: 36pt; color: #000000"><font style="background-color: #FFFFFF">Inventories, which are comprised of finished goods, are stated at the lower of cost (based on the first in, first out method) or market.  Inventories consist of CBD based products.</font></p>
</div>
<div style="margin-left: 36pt; width: 540pt">
<p style="font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 10pt; color: #000000"><kbd style="font: 10pt Times New Roman; position: absolute; margin-left: 18pt">h)</kbd><kbd style="margin-left: 36pt"></kbd>Reclassification </p>
<p style="font: 10pt Times New Roman; margin: 0; text-indent: 36pt; color: #000000">Certain prior period amounts have been reclassified to conform to current presentation.</p>
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