10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

FORM 10-Q

x   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the quarterly period ended MARCH 31, 2021

o   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

Commission file number:  000-55809

CANNASSIST INTERNATIONAL CORP.

 (Exact name of registrant as specified in its charter)

Delaware	82-1873116
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
855 SOUTH MISSION AVENUE, SUITE #K400, FALLBROOK CA	92028
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 888-991-2196

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days).    Yes  x    No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller Reporting Company	x
Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(1) of the Exchange Act. o

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No x  

Securities registered pursuant to Section 12(b) of the Act: None

As of May 14, 2021, the Company had 18,916,001 shares of its common stock, par value $.0001 per share, issued and outstanding.

TABLE OF CONTENTS

PART I
Item 1.	Condensed Unaudited Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4.	Controls and Procedures	15
PART II
Item 1.	Legal Proceedings	16
Item 1A.	Risk Factors	16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Mining Safety Disclosures	16
Item 5.	Other Information	16
Item 6.	Exhibits	17
	Signatures	18

2

 PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CANNASSIST INTERNATIONAL CORP.

INDEX TO FINANCIAL STATEMENTS

Balance Sheets as of March 31, 2021 (unaudited) and December 31, 2020	4
Statements of Operations for the three months ended March 31, 2021 and 2020	5
Statements of Changes in Stockholders’ Equity (Deficit) for the three months ended March 31, 2021 and 2020 (unaudited)	6
Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)	7
Notes to Condensed Financial Statements (Unaudited)	8

3

CannAssist International Corp.

Balance Sheets

	March 31, 2021			December 31,  2020
ASSETS	(unaudited)
Current assets:
Cash	$	22,406		$	175,497
Accounts receivable		192,232			119
Prepaid expenses		544			2,426
Inventory		67,964			79,432
Total assets	$	283,146		$	257,474
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accruals	$	176,380		$	252,310
Accounts payable – related party		20,370			20,370
Convertible notes payable, net of debt discount of $10,000 and $15,000, respectively		20,000			28,350
Due to a related party		34,902			23,443
Loans payable		11,000			11,000
Total current liabilities		262,652			335,473
Commitments and contingencies		-			-
Stockholders’ Deficit:
Preferred stock, $0.0001 par value 20,000,000 shares authorized; none issued and outstanding		-			-
Common Stock, $0.0001 par value, 100,000,000 shares authorized; 18,916,001 and 18,775,000 issued and outstanding, respectively		1,892			1,878
Additional paid in capital		3,276,761			3,253,525
Accumulated deficit		(3,258,159	)		(3,333,402	)
Total Stockholders’ deficit		20,494			(77,999	)
Total Liabilities and Stockholders’ Deficit	$	283,146		$	257,474

The accompanying notes are an integral part of these unaudited condensed financial statements.

4

CannAssist International Corp.

Statements of Operations

(Unaudited)

	For the Three Months Ended March 31,
	2021			2020
Revenue	$	217,973		$	210,087
Cost of revenue		9,792			99,005
Gross margin		208,181			111,082
Operating expenses:
General and administrative		82,412			82,377
Commissions – related party		-			4,373
Professional fees		42,370			32,610
Preferred stock issued for change of control		-			2,765,250
Total operating expenses		124,782			2,884,610
Gain (loss) from operations		83,399			(2,773,528	)
Other expense:
Interest expense		(8,156	)		(1,841	)
Total other expense		(8,156	)		(1,841	)
Loss before provision for income taxes		75,243			(2,775,369	)
Provision for income taxes		-			-
Net income (loss)	$	75,243		$	(2,775,369	)
Income (loss) per share, basic and diluted	$	0.00		$	(0.15	)
Weighted average shares outstanding, basic and diluted		18,841,878			18,435,000

The accompanying notes are an integral part of these unaudited condensed financial statements.

5

CannAssist International Corp.
Statements of Changes in Stockholders’ Deficit
For the Three Months Ended March 31, 2020 and 2021

									Additional					Total
	Preferred Stock				Common Stock				Paid-in		Retained			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Earnings			Deficit
Balance, December 31, 2019		-	$	-		18,435,000	$	1,844	$	358,317	$	(422,512	)	$	(62,351	)
Preferred stock issued for change of control		1,000		-		-		-		2,765,250		-			2,765,250
Net loss		-		-		-		-		-		(2,775,369	)		(2,775,369	)
Balance, March 31, 2020		1,000	$	-		18,435,000	$	1,844	$	3,123,567	$	(3,197,881	)	$	(72,470	)

									Additional					Total
	Preferred Stock				Common Stock				Paid-in		Retained			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Earnings			Deficit
Balance, December 31, 2020		1,000	$	-		18,775,000	$	1,878	$	3,253,525	$	(3,333,402	)	$	(77,999	)
Common stock issued for services		-		-		75,000		7		6,743		-			6,750
Common stock issued for debt conversion		-		-		58,000		6		14,494		-			14,500
Common stock units sold for cash		-		-		8,001		1		1,999		-			2,000
Net income		-		-		-		-		-		75,243			75,243
Balance, March 31, 2021		1,000	$	-		18,916,001	$	1,892	$	3,276,761	$	(3,258,159	)	$	20,494

The accompanying notes are an integral part of these unaudited condensed financial statements.

6

CannAssist International Corp.

Statements of Cash Flows

	For the Three Months Ended March 31,
	2021			2020
Cash flows from operating activities:
Net income (loss)	$	75,243		$	(2,775,369	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Preferred stock issued for change of control		-			2,765,250
Debt discount		6,150			-
Common stock issued for services		6,750
Changes in Operating Assets and Liabilities:
Accounts receivable		(192,113	)		(46,595	)
Inventory		11,468			(18,220	)
Prepaid expenses and other assets		1,882			3,171
Accounts payable and accrued liabilities		(75,930	)		42,428
Customer deposits		-			(31,260	)
Net cash used by operating activities		(166,550	)		(60,595	)
Cash flows from Investing activities:		-			-
Cash flows from Financing activities:
Proceeds from loans - related party		11,459			223
Proceeds from sale of common stock		2,000
Net cash provided by financing activities		13,459			223
Net decrease in cash		(153,091	)		(60,372	)
Cash, beginning of period		175,497			80,021
Cash, end of period	$	22,406		$	19,649
Cash Paid For:
Cash paid for interest	$	-		$	-
Cash paid for taxes	$	-		$	-
Supplemental Disclosure of Cash Flow Information:
Conversion of debt	$	14,500		$	-

The accompanying notes are an integral part of these unaudited condensed financial statements.

7

CANNASSIST INTERNATIONAL CORP.

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

NOTE 1 - DESCRIPTION OF BUSINESS AND HISTORY

Description of business

CannAssist International Corp. (the “Company” or “CannAssist”) was incorporated on May 17, 2017 under the laws of the state of Delaware under the name Iris Grove Acquisition Corporation to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. On May 23, 2018 the Company changed its name to CannAssist International Corporation.

On June 18, 2018, the Company cancelled all 20,000,000 shares of its issued and outstanding stock and issued 3,000,000 shares of common stock pursuant to Section 4(a)(2) of the Securities Act of 1933 at par representing 100% of the total outstanding common stock at the time. With the issuance of the stock and the redemption of the 20,000,000 shares of stock, the Company effected a change in its control and the new majority shareholder was elected as the new management of the Company.

On July 12, 2018, the “Company, entered into a share exchange acquisition agreement with Xceptor LLC, a private company organized under the laws of Wyoming (“Xceptor”). The Acquisition was effected by the Company through the exchange of all the outstanding membership interests of Xceptor for 3,000,000 shares of common stock of the Company, valued at $0.0001 per share. At the time of the Acquisition, there was one shareholder of the Company who was also a shareholder and manager of Xceptor. Xceptor has become a wholly owned subsidiary of the Company and the Company has taken over its operations and business plan. Prior to the Acquisition, the Company had no ongoing business or operations. Since the Company and Xceptor were entities under common control prior to the Acquisition, the transaction is accounted for as a restructuring transaction. The Company has recast prior period financial statements to reflect the conveyance of Xceptor’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements.

CannAssist produces and sells products formulated using its cannabidiol ("CBD") product, “Cibidinol,” which is formulated based on a process developed by its founder Mark Palumbo. CBD is a non-psychoactive compound found in hemp. CannAssist’s initial research and development work, aimed at enhancing the bioavailability of desired molecular structures, resulted in the creation of a line of CBD products, most notably its CBD product, Cibidinol. Cibidinol will be available in a line of consumable and topical products that the Company believes will make enhanced CBD products more available and accessible to consumers.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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. Actual results could differ from those estimates.

Accounts Receivable

Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value when needed. The allowance for uncollectible amounts is evaluated quarterly.

8

CANNASSIST INTERNATIONAL CORP.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2021

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue Recognition

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon delivery.

The Company recognizes revenue when product is shipped. The Company will often receive payment and/or pay for the cost of goods prior to shipping. When this occurs, the result is both a prepaid for the supplies to be used in their product and a customer deposit.

Cost of Sales

Cost of sales is determined on the basis of the cost of production or the purchase of goods, adjusted for the variation of inventory Cost of sale is recognized as the direct cost of products or services sold during the period.

Recently issued accounting pronouncements

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

NOTE 3 - GOING CONCERN

The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated revenues of $217,973 during the three months ended March 31, 2021 and had net income of $75,243 for three months ended March 31, 2021, while using $166,550 of cash in operating activities. The Company has an accumulated deficit of $3,258,159 as of March 31, 2021. The Company requires capital for its contemplated operational and marketing activities. The obtainment of additional financing, through an initial capital raise, the successful development of the Company’s contemplated plan of operations, and its transition to the attainment of continued profitable operations are necessary for the Company to continue operations. There is no guarantee that the Company will be able to obtain the necessary financing or profitable operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

9

CANNASSIST INTERNATIONAL CORP.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2021

NOTE 4 – LOANS PAYABLE

On October 11, 2017, the Company received a $1,000 loan from a third party. The loan is unsecured, due on demand and non-interest bearing.

On June 29, 2020, the Company received a $10,000 loan from a third party. The loan is unsecured, due on demand and non-interest bearing.

NOTE 5 – CONVERTIBLE NOTES PAYABLE

During July and August 2020, the Company issued convertible notes payable to third parties for a total of $14,500. The notes are all unsecured, non-interest bearing and due and payable in six months. If the loans are not repaid by the due date they can be converted into shares of common stock at $0.25 per share. In addition, the Company issued warrants to purchase 20,669 shares of common stock. The warrants have an exercise price of $0.50 and expire in five years. All of the notes were fully converted into 58,000 shares of common stock on February 26, 2021.

On November 19, 2020, the Company issued a convertible note payable to a third party for $30,000. The note is unsecured, bears interest at 10% and matures on May 13, 2021. If the loan is not repaid by the due date it can be converted into shares of common stock at $0.15 per share. The Company calculates a beneficial conversion feature on the loan of $20,000, recorded as a debt discount and credited to additional paid in capital. As of March 31, 2021, $10,000 of the discount has been amortized to interest expense.

NOTE 6 – RELATED PARTY TRANSACTIONS

Marla Palumbo has advanced the Company a limited amount of funds to cover some general operating expenses and travel costs. These advances are unsecured, due on demand and non-interest bearing. As of March 31, 2021 and December 31, 2020, the balance due to Ms. Palumbo for cash advances is $34,902 and $23,443, respectively. Ms. Palumbo is the President of the Company and wife of the CEO, Mark Palumbo.

During the three months ended March 31, 2021 and 2020, the Company paid sales commissions of $0 and $4,373, respectively, to EME Ltd.

NOTE 7 – COMMON STOCK

On February 8, 2021, the Company entered into an agreement with an independent consultant pursuant to which the consultant was issued 75,000 restricted shares of the common stock of the Company for services, at a cost basis of $0.09 per share, for total non-cash expense of $6,750.

On February 24, 2021, in connection with its qualified offering under Regulation A, the Company sold 2667 units to one investor at a price per unit of $0.75 per unit for aggregate proceeds of $2,000.25. Each unit is comprised of (i) 3 shares of the common stock of the Company and (ii) 1 warrant entitling the holder rights to purchase 1 share of the common stock.

During three months ended March 31, 2021, note holders converted $14,500 for 58,000 shares of common stock.

10

CANNASSIST INTERNATIONAL CORP.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2021

NOTE 8 – PREFERRED STOCK

The Company has designated 1,000 shares of Series A Preferred Stock. The shares of Series A Preferred Stock have a par value of $0.0001 per share. The Series A Preferred Shares do not have a dividend rate or liquidation preference and are not convertible into shares of common stock. Series A Preferred Stock, voting together as a class, have the right to vote 60% of the Company’s voting shares on any and all shareholder matters (the “Majority Voting Rights”). Additionally, the Company shall not adopt any amendments to the Company’s Bylaws, Articles of Incorporation, as amended, make any changes to the Certificate of Designations establishing the Series A Preferred Stock, or effect any reclassification of the Series A Preferred Stock, without the affirmative vote of at least a majority of the outstanding shares of Series A Preferred Stock. However, the Company may, by any means authorized by law and without any vote of the holders of shares of Series A Preferred Stock, make technical, corrective, administrative or similar changes to such Certificate of Designations that do not, individually or in the aggregate, adversely affect the rights or preferences of the holders of shares of Series A Preferred Stock. Other than the Majority Voting Rights, the Series A Preferred Stock does not have any other dividend, liquidation, conversion, or redemption rights, whatsoever.

NOTE 9 – WARRANTS

On February 24, 2021, the Company sold 2667 units to one investor at a price per unit of $0.75 per unit for aggregate proceeds of $2,000.25. Each unit is comprised of (i) 3 shares of the common stock of the Company and (ii) 1 warrant entitling the holder rights to purchase 1 share of the common stock of the Company at an exercise price equal to $0.50 for a period of 5 years from the date of issuance. The warrants were evaluated for purposes of classification between liability and equity. The warrants do not contain features that would require a liability classification and are therefore considered equity. The warrants were fair valued at $465. The Black Scholes pricing model was used to estimate the fair value of the Warrants issued with the following inputs:

Warrants		2,667
Share price	$	0.25
Exercise Price	$	0.50
Term		5 years
Volatility		109.15	%
Risk Free Interest Rate		.62	%
Dividend rate		-

11

CANNASSIST INTERNATIONAL CORP.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2021

NOTE 9 – WARRANTS (CONTINUED)

A summary of the status of the Company’s outstanding stock warrants and changes during the year is presented below:

Activity for three months ended March 31, 2021 is as follows: 

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Term		Aggregate Intrinsic Value
Outstanding at December 31, 2019	-		-		-
Granted		150,836	$	0.25		7.97	$	-
Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding at December 31, 2020		150,836	$	0.25		7.97	$	-
Granted		2,667	$	0.25		5.00	$	-
Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding at March 31, 2021		153,503	$	0.25		7.67	$	-
Exercisable at March 31, 2021		153,503	$	0.25		7.67	$	-

Range of Exercise Prices	Number Outstanding 3/31/2021	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$0.25	153,503	7.67 years	$0.25

NOTE 11 – SUBSEQUENT EVENTS

In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements

12

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following information should be read in conjunction with our financial statements and related notes thereto included in Part I, Item 1, above.

Forward Looking Statements

Certain matters discussed herein are forward-looking statements. Such forward-looking statements contained in this Form 10-Q involve risks and uncertainties, including statements as to:

·our future strategic plans

·our future operating results;

·our business prospects;

·our contractual arrangements and relationships with third parties;

·the dependence of our future success on the general economy;

·our possible future financings; and

·the adequacy of our cash resources and working capital.

These forward-looking statements can generally be identified as such because the context of the statement will include words such as we “believe,” “anticipate,” “expect,” “estimate” or words of similar meaning. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which are described in close proximity to such statements and which could cause actual results to differ materially from those anticipated. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this Form 10-Q, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Executive Overview

CannAssist International Corp. (formerly Iris Grove Acquisition Corporation) (the “Company”) was incorporated on May 17, 2017 under the laws of the State of Delaware. The business purpose of the Company is to produce, sell and market its CBD based products. The Company's corporate offices are located at 855 South Mission Avenue, Suite #K400, Fallbrook CA 92028. The Company's email address is info@xceptorllc.com, and its website is xceptorcbd.com. The Company’s telephone number is 760-990-3091.

CannAssist produces and sells its cannabidiol ("CBD") product, “Cibidinol,” which is formulated based on a process developed by its founder Mark Palumbo (US Provisional Patent Number 62/581,605). CBD is a non-psychoactive compound found in hemp. CannAssist’s initial research and development work, aimed at enhancing the bioavailability of desired molecular structures, resulted in the creation of a line of CBD products, most notably its CBD product, Cibidinol. Cibidinol will be available in a line of consumable and topical products that the Company believes will make enhanced CBD products more available and accessible to consumers.

For the period ended December 31, 2020, the Company’s independent auditors issued a report raising substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon financial support from its principal stockholders, its ability to obtain necessary equity financing, or its ability to sell its services to generate consistent profitability.

Results of Operation for the Three Months Ended March 31, 2021 and 2020

Revenues

For the three months ended March 31, 2021, the Company had revenues of $217,973, and costs of revenue of $9,792. In comparison, for the three months ended March 31, 2020, the Company had revenues of $210,087, and costs of revenue of $99,005. The increase in revenue is not material for the purposes of comparison.

For the three months ended March 31, 2021, the Company had a gross margin of $208,181. In comparison, the three months ended March 31, 2020, the Company had a gross margin of $111,082. The increase in gross margin is a result of the decrease in cost of revenue.

13

General and administrative expenses

General and administrative expenses were $82,412 for the three months ended March 31, 2021 compared to $82,377 for the three months ended March 31, 2020. The increase in general and administrative expenses is not material for the purposes of comparison.

Commissions

Commission expense was $0 for the three months ended March 31, 2021 compared to $4,373 for the three months ended March 31, 2020. Commission expense was paid to EME, LLC, a related party.

Professional fees

Professional fees were $42,370 for the three months ended March 31, 2021 compared to $32,610 for the three months ended March 31, 2020. Professional fees consist of audit, accounting and legal fees. The increase in professional fees are the result of increased fees related to becoming a public company.

Preferred Stock

Preferred Stock expense was $0 for the three months ended March 31, 2021 compared to $2,765,250 for the three months ended March 31, 2020. The preferred stock was issued to Mark Palumbo, a related party, and was a one-time expense.

Net Loss

For the three months ended March 31, 2021, we realized net income of $75,243 as compared to a net loss of $2,775,369 for three months ended March 31, 2020. The decrease in net loss in the current period is primarily due to fact that the expense incurred in connection with the issuance of preferred stock in 2020 was a one-time expense.

Liquidity and Capital Resources

The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated revenues of $217,973 during the three months ended March 31, 2021 and had a net income of $75,243 for the three months ended March 31, 2021. The Company has an accumulated deficit of $3,258,159 as of March 31, 2021. The Company requires capital for its contemplated operational and marketing activities. The obtainment of additional financing, through an additional capital raise, the successful development of the Company’s contemplated plan of operations, and its transition to the attainment of continued profitable operations are necessary for the Company to continue operations.

The Company used $166,550 of cash from operations for the three months ended March 31, 2021. Net cash provided by financing activities for the three months ended March 31, 2021 was $13,459.

As of March 31, 2021, the Company had $22,406 in cash.

Critical Accounting Estimates and Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Note 2 to the Financial Statements describes the significant accounting policies and methods used in the preparation of the Financial Statements. Estimates are used for, but not limited to, contingencies and taxes.  Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Financial Statements.

We are subject to various loss contingencies arising in the ordinary course of business.  We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies.  An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired, or a liability has been incurred and the amount of the loss can be reasonably estimated.  We regularly evaluate current information available to us to determine whether such accruals should be adjusted.

14

Off-Balance Sheet Arrangements 

We have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable to smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure. Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, they concluded that our disclosure controls and procedures were not effective for the quarterly period ended March 31, 2021.

The following aspects of the Company were noted as potential material weaknesses:

· timely and accurate reconciliation of accounts

· lack of segregation of duties

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.

Changes in Internal Controls

Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that no change occurred in the Company's internal controls over financial reporting during the quarter ended March 31, 2021, that has materially affected, or is reasonably likely to materially affect, the Company's internal controls over financial reporting.

15

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are not presently any material pending legal proceedings to which the Company is a party or as to which any of our property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this Item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In the first quarter of 2021, the Company issued a total of 58,000 shares of its restricted common stock, at a conversion price of $0.25 per share, to 10 investors in connection with the conversion of convertible promissory notes with an aggregate principal amount of $14,500 bearing an interest rate of 0% per annum. The shares were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act.

On February 24, 2021, in connection with its qualified offering under Regulation A, the Company sold 2667 units to 1 investor at a price per unit of $0.75 per unit for aggregate proceeds of $2,000.25. Each unit is comprised of (i) 3 shares of the common stock of the Company and (ii) 1 warrant entitling the holder rights to purchase 1 share of the common stock of the Company at an exercise price equal to $0.50 for a period of 5 years from the date of issuance. The Company has not yet used the proceeds of this sale, but intends to use the proceeds for administrative purposes in connection with the operation of its business.

On February 8, 2021, the Company entered into an agreement with an independent consultant pursuant to which the consultant was issued 75,000 restricted shares of the common stock of the Company for services, at a cost basis of $0.09 per share, subject to certain conditions regarding vesting. The shares of common stock granted to this consultant were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINING SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION.

None

16

ITEM 6. EXHIBITS

No.	Description
31.1	Chief Executive Officer Section 302 Certification
31.2	Chief Financial Officer Section 302 Certification
32.1	Section 906 Certification
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document

17

SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CANNASSIST INTERNATIONAL CORPORATION

Dated: May 14, 2021	By:  /s/ Mark Palumbo Mark Palumbo Chief Executive Officer
	By: /s/ Mark Palumbo Mark Palumbo Chief Financial Officer

18

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER

I, Mark Palumbo, hereby certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q for the period ending March 31, 2021 of CannAssist International Corporation;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:  May 14, 2021 /s/ Mark Palumbo Mark Palumbo Chief Executive Officer

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER

I, Mark Palumbo, hereby certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q for the period ending March 31, 2021 of CannAssist International Corporation;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:  May 14, 2021 /s/ Mark Palumbo Mark Palumbo Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officers of CannAssist International Corporation., a Delaware corporation (the "Company"), do hereby certify, to the best of their knowledge, that:

1.     The Quarterly Report on Form 10-Q for the period ending March 31, 2021 (the "Report") of the Company complies in all material respects with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.  

Dated:  May 14, 2021 /s/ Mark Palumbo Mark Palumbo Chief Executive Officer

Dated:  May 14, 2021 /s/ Mark Palumbo Mark Palumbo Chief Financial Officer

XML

Cover - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Cover [Abstract]
Entity Registrant Name	CannAssist International Corp
Entity Central Index Key	0001709542
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-55809
Entity Incorporation State Country Code	DE
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		18,916,001
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

XML

Balance Sheets (unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash	$ 22,406	$ 175,497
Accounts receivable	192,232	119
Prepaid expenses	544	2,426
Inventory	67,964	79,432
Total assets	283,146	257,474
Current liabilities:
Accounts payable and accruals	176,380	252,310
Accounts payable - related party	20,370	20,370
Convertible notes payable, net of debt discount of $10,000 and $15,000, respectively	20,000	28,350
Due to a related party	34,902	23,443
Loans payable	11,000	11,000
Total current liabilities	262,652	335,473
Commitments and contingencies
Stockholders' Deficit:
Preferred stock, $0.0001 par value 20,000,000 shares authorized; none issued and outstanding
Common Stock, $0.0001 par value, 100,000,000 shares authorized; 18,916,001 and 18,775,000 issued and outstanding, respectively	1,892	1,878
Additional paid in capital	3,276,761	3,253,525
Accumulated deficit	(3,258,159)	(3,333,402)
Total Stockholders' deficit	20,494	(77,999)
Total Liabilities and Stockholders' Deficit	$ 283,146	$ 257,474

XML

Balance Sheets (unaudited) (Parenthetical) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Convertible notes payable, net of debt discount	$ 10,000	$ 15,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	20,000,000	20,000,000
Series A preferred stock, issued	1,000	1,000
Series A preferred stock, outstanding	1,000	1,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	18,916,001	18,775,000
Common stock, outstanding	18,916,001	18,775,000

XML

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 217,973	$ 210,087
Cost of revenue	9,792	99,005
Gross margin	208,181	111,082
Operating expenses:
General and administrative	82,412	82,377
Commissions - related party		4,373
Professional fees	42,370	32,610
Preferred stock issued for change of control		2,765,250
Total operating expenses	124,782	2,884,610
Gain (loss) from operations	83,399	(2,773,528)
Other expense:
Interest expense	(8,156)	(1,841)
Total other expense	(8,156)	(1,841)
Loss before provision for income taxes	75,243	(2,775,369)
Provision for income taxes
Net income (loss)	$ 75,243	$ (2,775,369)
Income (loss) per share, basic and diluted (in dollars per share)	$ 0	$ (0.15)
Weighted average shares outstanding, basic and diluted (in shares)	18,841,878	18,435,000

XML

Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at the beginning at Dec. 31, 2019		$ 1,844	$ 358,317	$ (422,512)	$ (62,351)
Balance at the beginning (in shares) at Dec. 31, 2019		18,435,000
Increase Decrease In Stockholders Equity [Roll Forward]
Preferred stock issued for change of control			2,765,250		2,765,250
Preferred stock issued for change of control (in shares)	1,000
Net income\loss				(2,775,369)	(2,775,369)
Balance at the end at Mar. 31, 2020		$ 1,844	3,123,567	(3,197,881)	(72,470)
Balance at the end (in shares) at Mar. 31, 2020	1,000	18,435,000
Balance at the beginning at Dec. 31, 2020		$ 1,878	3,253,525	(3,333,402)	(77,999)
Balance at the beginning (in shares) at Dec. 31, 2020	1,000	18,775,000
Increase Decrease In Stockholders Equity [Roll Forward]
Common stock issued for services		$ 7	6,743		6,750
Common stock issued for services (in shares)		75,000
Common stock issued for debt conversion		$ 6	14,494		14,500
Common stock issued for debt conversion (in shares)		58,000
Common stock units sold for cash		$ 1	1,999		2,000
Common stock units sold for cash (in shares)		8,001
Net income\loss				75,243	75,243
Balance at the end at Mar. 31, 2021		$ 1,892	$ 3,276,761	$ (3,258,159)	$ 20,494
Balance at the end (in shares) at Mar. 31, 2021	1,000	18,916,001

XML

Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ 75,243	$ (2,775,369)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Preferred stock issued for change of control		2,765,250
Debt discount	6,150
Common stock issued for services	6,750
Changes in Operating Assets and Liabilities:
Accounts receivable	(192,113)	(46,595)
Inventory	11,468	(18,220)
Prepaid expenses and other assets	1,882	3,171
Accounts payable and accrued liabilities	(75,930)	42,428
Customer deposits		(31,260)
Net cash used by operating activities	(166,550)	(60,595)
Cash flows from Investing activities:
Cash flows from Financing activities:
Proceeds from loans - related party	11,459	223
Proceeds from sale of common stock	2,000
Net cash provided by financing activities	13,459	223
Net decrease in cash	(153,091)	(60,372)
Cash, beginning of period	175,497	80,021
Cash, end of period	22,406	19,649
Cash Paid For:
Cash paid for interest
Cash paid for taxes
Supplemental Disclosure of Cash Flow Information:
Conversion of debt	$ 14,500

XML

DESCRIPTION OF BUSINESS AND HISTORY

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS AND HISTORY

NOTE 1 - DESCRIPTION OF BUSINESS AND HISTORY

Description of business

CannAssist International Corp. (the “Company” or “CannAssist”) was incorporated on May 17, 2017 under the laws of the state of Delaware under the name Iris Grove Acquisition Corporation to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. On May 23, 2018 the Company changed its name to CannAssist International Corporation.

On June 18, 2018, the Company cancelled all 20,000,000 shares of its issued and outstanding stock and issued 3,000,000 shares of common stock pursuant to Section 4(a)(2) of the Securities Act of 1933 at par representing 100% of the total outstanding common stock at the time. With the issuance of the stock and the redemption of the 20,000,000 shares of stock, the Company effected a change in its control and the new majority shareholder was elected as the new management of the Company.

On July 12, 2018, the “Company, entered into a share exchange acquisition agreement with Xceptor LLC, a private company organized under the laws of Wyoming (“Xceptor”). The Acquisition was effected by the Company through the exchange of all the outstanding membership interests of Xceptor for 3,000,000 shares of common stock of the Company, valued at $0.0001 per share. At the time of the Acquisition, there was one shareholder of the Company who was also a shareholder and manager of Xceptor. Xceptor has become a wholly owned subsidiary of the Company and the Company has taken over its operations and business plan. Prior to the Acquisition, the Company had no ongoing business or operations. Since the Company and Xceptor were entities under common control prior to the Acquisition, the transaction is accounted for as a restructuring transaction. The Company has recast prior period financial statements to reflect the conveyance of Xceptor’s common shares as if the restructuring transaction had occurred as of the earliest date of the financial statements.

CannAssist produces and sells products formulated using its cannabidiol ("CBD") product, “Cibidinol,” which is formulated based on a process developed by its founder Mark Palumbo. CBD is a non-psychoactive compound found in hemp. CannAssist’s initial research and development work, aimed at enhancing the bioavailability of desired molecular structures, resulted in the creation of a line of CBD products, most notably its CBD product, Cibidinol. Cibidinol will be available in a line of consumable and topical products that the Company believes will make enhanced CBD products more available and accessible to consumers.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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. Actual results could differ from those estimates.

Accounts Receivable

Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value when needed. The allowance for uncollectible amounts is evaluated quarterly.

Revenue Recognition

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon delivery.

The Company recognizes revenue when product is shipped. The Company will often receive payment and/or pay for the cost of goods prior to shipping. When this occurs, the result is both a prepaid for the supplies to be used in their product and a customer deposit.

Cost of Sales

Cost of sales is determined on the basis of the cost of production or the purchase of goods, adjusted for the variation of inventory Cost of sale is recognized as the direct cost of products or services sold during the period.

Recently issued accounting pronouncements

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

XML

GOING CONCERN

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 3 - GOING CONCERN

The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated revenues of $217,973 during the three months ended March 31, 2021 and had net income of $75,243 for three months ended March 31, 2021, while using $166,550 of cash in operating activities. The Company has an accumulated deficit of $3,258,159 as of March 31, 2021. The Company requires capital for its contemplated operational and marketing activities. The obtainment of additional financing, through an initial capital raise, the successful development of the Company’s contemplated plan of operations, and its transition to the attainment of continued profitable operations are necessary for the Company to continue operations. There is no guarantee that the Company will be able to obtain the necessary financing or profitable operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

XML

LOAN PAYABLE

3 Months Ended

Mar. 31, 2021

Loans Payable [Abstract]

LOAN PAYABLE

NOTE 4 – LOANS PAYABLE

On October 11, 2017, the Company received a $1,000 loan from a third party. The loan is unsecured, due on demand and non-interest bearing.

On June 29, 2020, the Company received a $10,000 loan from a third party. The loan is unsecured, due on demand and non-interest bearing.

XML

CONVERTIBLE NOTES PAYABLE

3 Months Ended

Mar. 31, 2021

Convertible Notes Payable [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 5 – CONVERTIBLE NOTES PAYABLE

During July and August 2020, the Company issued convertible notes payable to third parties for a total of $14,500. The notes are all unsecured, non-interest bearing and due and payable in six months. If the loans are not repaid by the due date they can be converted into shares of common stock at $0.25 per share. In addition, the Company issued warrants to purchase 20,669 shares of common stock. The warrants have an exercise price of $0.50 and expire in five years. All of the notes were fully converted into 58,000 shares of common stock on February 26, 2021.

On November 19, 2020, the Company issued a convertible note payable to a third party for $30,000. The note is unsecured, bears interest at 10% and matures on May 13, 2021. If the loan is not repaid by the due date it can be converted into shares of common stock at $0.15 per share. The Company calculates a beneficial conversion feature on the loan of $20,000, recorded as a debt discount and credited to additional paid in capital. As of March 31, 2021, $10,000 of the discount has been amortized to interest expense.

XML

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 6 – RELATED PARTY TRANSACTIONS

Marla Palumbo has advanced the Company a limited amount of funds to cover some general operating expenses and travel costs. These advances are unsecured, due on demand and non-interest bearing. As of March 31, 2021 and December 31, 2020, the balance due to Ms. Palumbo for cash advances is $34,902 and $23,443, respectively. Ms. Palumbo is the President of the Company and wife of the CEO, Mark Palumbo.

During the three months ended March 31, 2021 and 2020, the Company paid sales commissions of $0 and $4,373, respectively, to EME Ltd.

XML

COMMON STOCK

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

COMMON STOCK

NOTE 7 – COMMON STOCK

On February 8, 2021, the Company entered into an agreement with an independent consultant pursuant to which the consultant was issued 75,000 restricted shares of the common stock of the Company for services, at a cost basis of $0.09 per share, for total non-cash expense of $6,750.

On February 24, 2021, in connection with its qualified offering under Regulation A, the Company sold 2667 units to one investor at a price per unit of $0.75 per unit for aggregate proceeds of $2,000.25. Each unit is comprised of (i) 3 shares of the common stock of the Company and (ii) 1 warrant entitling the holder rights to purchase 1 share of the common stock.

During three months ended March 31, 2021, note holders converted $14,500 for 58,000 shares of common stock.

XML

PREFERRED STOCK

3 Months Ended

Mar. 31, 2021

Technology License Agreement [Member]

PREFERRED STOCK

NOTE 8 – PREFERRED STOCK

The Company has designated 1,000 shares of Series A Preferred Stock. The shares of Series A Preferred Stock have a par value of $0.0001 per share. The Series A Preferred Shares do not have a dividend rate or liquidation preference and are not convertible into shares of common stock. Series A Preferred Stock, voting together as a class, have the right to vote 60% of the Company’s voting shares on any and all shareholder matters (the “Majority Voting Rights”). Additionally, the Company shall not adopt any amendments to the Company’s Bylaws, Articles of Incorporation, as amended, make any changes to the Certificate of Designations establishing the Series A Preferred Stock, or effect any reclassification of the Series A Preferred Stock, without the affirmative vote of at least a majority of the outstanding shares of Series A Preferred Stock. However, the Company may, by any means authorized by law and without any vote of the holders of shares of Series A Preferred Stock, make technical, corrective, administrative or similar changes to such Certificate of Designations that do not, individually or in the aggregate, adversely affect the rights or preferences of the holders of shares of Series A Preferred Stock. Other than the Majority Voting Rights, the Series A Preferred Stock does not have any other dividend, liquidation, conversion, or redemption rights, whatsoever.

XML

WARRANTS

3 Months Ended

Mar. 31, 2021

Recent Accounting Standards

WARRANTS

NOTE 9 – WARRANTS

On February 24, 2021, the Company sold 2667 units to one investor at a price per unit of $0.75 per unit for aggregate proceeds of $2,000.25. Each unit is comprised of (i) 3 shares of the common stock of the Company and (ii) 1 warrant entitling the holder rights to purchase 1 share of the common stock of the Company at an exercise price equal to $0.50 for a period of 5 years from the date of issuance. The warrants were evaluated for purposes of classification between liability and equity. The warrants do not contain features that would require a liability classification and are therefore considered equity. The warrants were fair valued at $465. The Black Scholes pricing model was used to estimate the fair value of the Warrants issued with the following inputs:

Warrants		2,667
Share price	$	0.25
Exercise Price	$	0.50
Term		5 years
Volatility		109.15	%
Risk Free Interest Rate		.62	%
Dividend rate		-

A summary of the status of the Company’s outstanding stock warrants and changes during the year is presented below:

Activity for three months ended March 31, 2021 is as follows: 

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Term		Aggregate Intrinsic Value
Outstanding at December 31, 2019	-		-		-
Granted		150,836	$	0.25		7.97	$	-
Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding at December 31, 2020		150,836	$	0.25		7.97	$	-
Granted		2,667	$	0.25		5.00	$	-
Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding at March 31, 2021		153,503	$	0.25		7.67	$	-
Exercisable at March 31, 2021		153,503	$	0.25		7.67	$	-

Range of Exercise Prices	Number Outstanding 3/31/2021	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$0.25	153,503	7.67 years	$0.25

XML

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 11 – SUBSEQUENT EVENTS

In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles 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. Actual results could differ from those estimates.

Accounts Receivable

Accounts Receivable

Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value when needed. The allowance for uncollectible amounts is evaluated quarterly.

Revenue Recognition

Revenue Recognition

Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that an entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company's performance obligations are transferred to customers at a point in time, typically upon delivery.

The Company recognizes revenue when product is shipped. The Company will often receive payment and/or pay for the cost of goods prior to shipping. When this occurs, the result is both a prepaid for the supplies to be used in their product and a customer deposit.

Cost of Sales

Cost of Sales

Cost of sales is determined on the basis of the cost of production or the purchase of goods, adjusted for the variation of inventory Cost of sale is recognized as the direct cost of products or services sold during the period.

Recently issued accounting pronouncements

Recently issued accounting pronouncements

The Company has implemented all new accounting pronouncements that are in effect.  These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

XML

WARRANTS (Tables)

3 Months Ended

Mar. 31, 2021

Recent Accounting Standards

Schedule of estimated the fair value of these warrants using Black-Scholes

The Black Scholes pricing model was used to estimate the fair value of the Warrants issued with the following inputs:

Warrants		2,667
Share price	$	0.25
Exercise Price	$	0.50
Term		5 years
Volatility		109.15	%
Risk Free Interest Rate		.62	%
Dividend rate		-

Schedule of outstanding stock warrants and changes

Activity for three months ended March 31, 2021 is as follows: 

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Term		Aggregate Intrinsic Value
Outstanding at December 31, 2019	-		-		-
Granted		150,836	$	0.25		7.97	$	-
Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding at December 31, 2020		150,836	$	0.25		7.97	$	-
Granted		2,667	$	0.25		5.00	$	-
Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding at March 31, 2021		153,503	$	0.25		7.67	$	-
Exercisable at March 31, 2021		153,503	$	0.25		7.67	$	-

Schedule of weighted average remaining

Range of Exercise Prices	Number Outstanding 3/31/2021	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$0.25	153,503	7.67 years	$0.25

XML

DESCRIPTION OF BUSINESS AND HISTORY (Details Narrative) - $ / shares			3 Months Ended
	Jul. 12, 2018	Jun. 18, 2018	Mar. 31, 2021
Number of shares cancelled		20,000,000
Number of shares issued		3,000,000
Redemption shares of stock		20,000,000
Percentage of total outstanding common stock		100.00%
Description of produces and sells			CannAssist produces and sells products formulated using its cannabidiol ("CBD") product, “Cibidinol,” which is formulated based on a process developed by its founder Mark Palumbo.
Exchange Acquisition Agreement [Member] | Xceptor LLC [Member]
Number of shares exchange in business acquisition	3,000,000
Business acquisition, share price (in dollars per share)	$ 0.0001

XML

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenues	$ 217,973
Net income (loss)	(75,243)	$ 2,775,369
Net cash provided (used) by operating activities	(166,550)	$ (60,595)
Accumulated deficit	$ (3,258,159)		$ (3,333,402)

XML

LOANS PAYABLE (Details Narrative) - Third Party [Member] - Unsecured Loan Payable [Member] - USD ($)			1 Months Ended	2 Months Ended
	Jun. 29, 2020	Oct. 11, 2017	Nov. 19, 2020	Aug. 31, 2020
Proceeds from unsecured loan payable	$ 10,000	$ 1,000
Interest rate terms	non-interest bearing	non-interest bearing	unsecured	non-interest bearing

XML

CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)				1 Months Ended	2 Months Ended	3 Months Ended
	Feb. 26, 2021	Jun. 29, 2020	Oct. 11, 2017	Nov. 19, 2020	Aug. 31, 2020	Mar. 31, 2021	Feb. 24, 2021	Dec. 31, 2020
Shares price (in dollars per shares)						$ 0.25	$ 0.75
Warrant [Member]
Warrant term						7 years 8 months 1 day		7 years 11 months 19 days
Third Party [Member] | Unsecured Loan Payable [Member]
Convertible note payable				$ 30,000	$ 14,500
Interest rate terms		non-interest bearing	non-interest bearing	unsecured	non-interest bearing
Debt term					6 months
Debt conversion price (in dollars per shares)					$ 0.25
Debt discount						$ 10,000
Number of shares converted (in shares)	58,000					40,000
Interest rate				10.00%
Maturity date				May 13, 2021
Shares price (in dollars per shares)				$ 0.15
Amount of beneficial conversion feature				$ 20,000
Third Party [Member] | Unsecured Loan Payable [Member] | Warrant [Member]
Number of warrant issued					$ 20,669
Exercise price (in dollars per share)					$ 0.50
Warrant term					5 years
Third Party [Member] | Unsecured Loan Payable [Member]
Number of shares converted (in shares)						20,000

XML

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Commissions - related party		$ 4,373
EME Ltd. [Member]
Commissions - related party	0	$ 4,373
Ms. Marla Palumbo [Member] | General Operating Expenses [Member]
Due to related party	$ 34,902		$ 23,443

XML

Common Stock (Detail Narrative) - USD ($)				3 Months Ended
	Feb. 24, 2021	Feb. 08, 2021	Jun. 18, 2018	Mar. 31, 2021	Mar. 31, 2020
Number of shares issued (in shares)			3,000,000
Share price	$ 0.75			$ 0.25
Number of shares of common stock for total cash proceeds	2,667
Value of shares of common stock for total cash proceeds	$ 2,000
Value of shares converted				$ 14,500	$ 58,000
Common stock, voting rights				Each unit is comprised of (i) 3 shares of the common stock of the Company and (ii) 1 warrant entitling the holder rights to purchase 1 share of the common stock.
Independent Consultant Agreement [Member]
Number of shares issued (in shares)		75,000
Share price		$ 0.09
Non-cash expense		$ 6,750

XML

PREFERRED STOCK (Details Narrative) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Number of shares designated	20,000,000	20,000,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Series A Preferred Stock [Member]
Number of shares designated	1,000
Preferred stock, par value (in dollars per share)	$ 0.0001
Preferred stock, voting rights	Series A Preferred Stock, voting together as a class, have the right to vote 60% of the Company’s voting shares

XML

WARRANTS (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Feb. 24, 2021
Share price	$ 0.25	$ 0.75
Warrant 1 [Member]
Warrants	2,667	2,667
Share price	$ 0.25
Exercise Price	$ 0.50	$ 0.50
Term	5 years	5 years
Volatility	109.15%
Risk Free Interest Rate	62.00%
Dividend rate

XML

WARRANTS (Details 1) - Warrant [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Number of Warrants
Outstanding at beginning	150,836
Granted	2,667	150,836
Expired
Exercised
Outstanding at end	153,503	150,836
Exercisable at end	153,503
Weighted Average Exercise Price
Outstanding at beginning	$ 0.25
Granted	0.25	0.25
Expired
Exercise
Outstanding at end	0.25	$ 0.25
Exercisable at end	$ 0.25
Weighted Average Remaining Contract Term
Outstanding at beginning	7 years 11 months 19 days
Granted	5 years	7 years 11 months 19 days
Weighted average remaining contract term	7 years 8 months 1 day	7 years 11 months 19 days
Weighted average remaining contract term, exercisable	7 years 8 months 1 day

XML

WARRANTS (Details 2) - Warrant [Member] - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Weighted average remaining contractual life (years)	7 years 8 months 1 day	7 years 11 months 19 days
Exercise Price $0.25 [Member]
Exercse Price	$ 0.25
Number outstanding	153,503
Weighted average remaining contractual life (years)	7 years 8 months 1 day
Weighted Average Exercise Price	$ 0.25

XML

WARRANTS (Details Narrative) - USD ($)	Mar. 31, 2021	Feb. 24, 2021	Dec. 31, 2020
Cash	$ 22,406		$ 175,497
Warrant 1 [Member]
Number of warrant issued	2,667	2,667
Exercise price (in dollars per share)	$ 0.50	$ 0.50
Warrant term	5 years	5 years
Warrant fair value		$ 465