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<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;margin:0px"><strong>Business Overview</strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Elite Performance Holding Corporation ("EPH") was formed on January 30, 2018 (inception) and is a holding company with anticipated holdings in companies centered on innovative and proprietary nutritional and dietary fitness enhancement products, that are in the sports performance, weight loss, nutritional, functional beverage and energy markets. The team is composed of highly experienced business, marketing and sales executives in the beverage and nutritional space, who are passionate about health and nutrition.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">The mission of Elite Performance Holdings Corp. is to aggressively seek and acquire companies with niche products that are first to market and can be exploited in the 35 billion dollar nutritional and sport beverage industries. The goal of EPH is to effectuate its unique business model through strategic branding and marketing, to aggressively scale companies to size, and operate them efficiently to maximize growth, revenue production and eventual net income. On February 2, 2018, a contribution and assignment agreement was executed by Joey Firestone and Jon McKenzie (collectively, the “Assignors”), and Elite Performance Holding Corp., a Nevada corporation (the “Assignee”). Whereas Firestone and McKenzie were the owners of 50,000,000 shares of common stock, $0.0001 par value, for a total of 100,000,000 shares of common stock (collectively, the “Shares”) of Elite Beverage International Corp., a Nevada corporation (the “Company”), which shares represented all authorized, issued and outstanding shares of the Company.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Elite Beverage International is a 100% wholly owned subsidiary of Elite Performance Holding Corp. Elite Beverage is currently producing a first of its kind functional sports beverage. Beyond Your Limit Training (B.Y.L.T.) sports drink is the first to combine the benefits of hydration, muscle repair, fat oxidation, and recovery all-in-one great tasting beverage. Whether you are looking to achieve optimal performance on the baseball field, basketball court, soccer field, in the gym or any competitive sport, BYLT® provides the competitive edge every athlete actively seeks. This unique product is designed with scientifically dosed key ingredients to bridge the gap between the current sports drinks filled with sugars that have serve no function, hydration beverages and dietary supplements, without the crash from sugars and jitters from caffeine which eventually leads to a decrease in performance for athletes. BYLT® is not only designed to enhance performance and support the intense physical demand of athletes but be safe and backed by science.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px"><strong>Our Products and Services</strong></p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Elite Beverages will offer a first to market functional beverage that redefines hydration and performance drinks using a patented amino/carbohydrate combination. The SmartCarb® technology blend provides a unique benefit of hydration, endurance and sustained energy without caffeine, the crash of sugars, and without artificial flavors or colors making it the ideal sports beverage for health-conscious consumers and serious athletes alike. BYLT® will introduce two flavors upon launch while planning to strategically introduce additional 6 flavors to support the launch after three to nine months of operation. These flavors will include Raspberry lemonade, Tropical Punch, Lemon Lime, Green Apple, Watermelon, Grape, Orange and Fruit Punch.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">On August 01, 2020, the Company entered into an Exclusivity Agreement between its wholly owned subsidiary Elite Beverage International Corp. and Bruce Kneller for exclusive rights on a patent pending SmartCarb® technology (US Patent Application No. 16/785,498.) This Agreement gives the Company first right of refusal to purchase the technology upon issuance of its patent for a predetermined and agreed upon amount of shares in the Company. </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">These 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. Licenses are capitalized at their acquisition cost if that cost exceeds the relevant threshold. As of December 31, 2020, the company had an accumulated deficit of ($3,721,005). The continuation of the Company as a going concern is dependent upon the continued financial support from its management, its ability to generate profits from the Company’ s future operations, identify future investment opportunities and obtain the necessary debt or equity financing. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These 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> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Accounting Methods</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a calendar year-end.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong><em>Principles of Consolidation and Basis of Presentation</em></strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="font-size:10pt;font-family:times new roman;margin:0px">The consolidated financial statements include the accounts and operations of the Company, and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Cash and Cash Equivalents</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">We maintain the majority of our cash accounts at a commercial bank. The total cash balance is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per commercial bank. For purposes of the statement of cash flows we consider all cash and highly liquid investments with initial maturities of three months or less to be cash equivalents.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Accounts Receivable</em></strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">We grant credit to our customers located within the United States of America; and do not require collateral. Our ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by us. The allowance for doubtful trade receivables was $0 as of December 31, 2020, and $0 as of December 31, 2019 respectively.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Inventory</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Inventories are valued at the lower of weighted average cost or market value. Our industry experiences change in technology, changes in market value and availability of raw materials, as well as changing customer demand. We make provisions for estimated excess and obsolete inventories based on regular audits and cycle counts of our on-hand inventory levels and forecasted customer demands and at times additional provisions are made. Any inventory write offs are charged to the reserve account or expensed to cost of goods sold. As of December 31, 2020, and December 31, 2019, we had no reserve for potentially obsolete inventory. We had $10,128 and $152,330 in inventory as of December 31, 2020, and December 31, 2019.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Prepaid Expenses</em></strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">We had $0 and $0 in prepaid inventory and insurance as of December 31, 2019, and December 31, 2020 respectively.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Basic and Diluted Loss Per Share</em></strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company presents both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (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 including convertible debt, stock options, and warrants, using the treasury stock method, and convertible securities, 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. The Company had net losses as of December 31, 2020, so the diluted EPS excluded all dilutive potential shares in the diluted EPS because their effect is anti-dilutive. As of December 31, 2020, the company had $499,000 in convertible notes that may be converted into 9,980,000 shares of common stock. We also had 276,060 shares to be issued as of December 31, 2020. </p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Fair Value of Financial Instruments</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The carrying number of accounts payable and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of these financial instruments.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Research and Development</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Research and development costs are expensed as incurred. Research and development expenses primarily consist of salaries and benefits for research and development employees, stock-based compensation, consulting fees, lab supplies, and regulatory compliance costs. For the Year ended December 31, 2020, and for the year ended December 31, 2019 we had $0 and $124 respectively in R&D expense.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Use of Estimates</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The preparation of financial statements 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.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Revenue Recognition</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The company’s performance obligation is to deliver the product(s) per the contract and the obligation is met upon receipt of the product by the purchaser. Prices are predetermined plus applicable taxes and shipping costs. The company’s main source of revenue comes from online sales with the primary stream coming from the company website and Amazon. Amounts invoiced or collected in advance of product delivery or providing services are recorded as deferred revenue. The Company accrues for warranty costs, sales returns, bad debts, and other allowances based on its historical experience. For the year ended December 31, 2020 and for the year ended December 31, 2019 we had $26,154 and $35,820 respectively in revenue from the sale of our products.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Income Taxes</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Federal Income taxes are not currently due since we have had losses since inception.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act, (the “Tax Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the for the year ended December 31, 2020, using a Federal Tax Rate of 21%.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 <em>Income Taxes – Recognition.</em> Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard required by ASC 740-10-25-5.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of December 31, 2020, we had a net operating loss carry-forward of approximately $(3,721,005) and a deferred tax asset of $781,411 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(781,411). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2020, the Company had not taken any tax positions that would require disclosure under FASB ASC 740.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Net deferred tax assets consist of the following components as of December 31, 2020 and December 31, 2019:</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <table style="border-spacing:0;text-align:left;font:10pt times new roman;margin-left:auto;margin-right:auto;width:85%" cellpadding="0"> <tr style="height:15px"> <td> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>December 31, </strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong> </strong></p></td> <td style="white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong> </strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>December 31, </strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Deferred tax assets:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Deferred tax assets:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">781,411</td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">511,161</td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Valuation allowance</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(781,411</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(511,161</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Net deferred tax asset</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: black 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: black 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: black 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: black 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></table> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Stock-Based Compensation</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company records stock-based compensation using the fair value method. Equity instruments issued to employees and the cost of the services received as consideration are accounted for in accordance with ASC 718 “Stock Compensation” and are measured and recognized based on the fair value of the equity instruments issued. All transactions with non-employees in which goods or services are the consideration received for the issuance of equity instruments are accounted for in accordance with ASC 515 “Equity-Based Payments to Non-Employees”, based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Long Lived Assets</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Periodically the Company assesses potential impairment of its long-lived assets, which include property, equipment and acquired intangible assets, in accordance with the provisions of ASC Topic 360, “Property, Plant and Equipment.” The Company recognizes impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying values. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. There were no such losses recognized during the Years ended December 31, 2020 and December 31, 2019. </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Property, Equipment and Intangible Assets</em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em> </em></strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Property and equipment are carried at cost, less accumulated depreciation. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Intangible assets consist of acquired web site domains and web site content and are carried at cost, less accumulated amortization.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Depreciation and amortization are provided principally on the straight-line basis method over the estimated useful lives of the assets.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Recently Issued Accounting Standards</em></strong></p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements.</p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><em>FASB ASU 2016-02 “Leases (Topic 842)” – </em>In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have adopted the above ASU as of January 1, 2019. </p> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Update 2019-08—Compensation—Stock Compensation (Topic 718) In June 2018, the Board issued Accounting Standards Update No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, as part of its Simplification Initiative. This Update is effective for companies with fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Adoption of this ASU on January 1, 2020 did not have a material effect on our consolidated financial statements.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On January 1, 2020, the Company adopted ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820. Adoption of this ASU did not have a material effect on our consolidated financial statements.</p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">All new accounting pronouncements issued but not yet effective are not expected to have a material impact on our results of operations, cash flows or financial position with the exception of the updated previously disclosed above, there have been no new accounting pronouncements not yet effective that have significance to our consolidated financial statements.</p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Accounts and Notes Payable related party</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On November 15, 2017, Elite Beverage International issued an unsecured note payable for $80,300 to Jon McKenzie at a 6% interest rate, due upon demand. An addendum to the note was added in 2018 for an additional $127,637 in funding which was received in various advances throughout the year.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">For the Year ended December 31, 2019, Jon McKenzie advanced a total of $2,000 for operating expenses of the company, which was added to the addendum. Interest expense for this note for the year ended December 31, 2019, and the year ended December 31, 2020, was $12,294 and $7,897 respectively.</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On September 4, 2020, the Company reduced their debt by $439,545 with the retirement of two 6% interest bearing notes for $159,752 and $50,185 collectively and accrued interest of $30,693. These two notes held by the Company’s former CEO, COO and Board Director Jon McKenzie were forgiven after his departure. The company reduced its debt by $198,915 from accounts payable that were forgiven after Jon McKenzie’s departure. There was no subsequent terms or conditions set forth for the debt forgiveness. The total amount forgiven was $439,545 and charged to additional paid in capital</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">For the year ended December 31, 2019, and 2020, we had $36,000 and $36,000 respectively in consulting expense to “I Know a Dude, Inc.” owned by Laya Clark. Mr. Clark is a member of our Board of Directors. As of December 31, 2019, and 2020, we had an outstanding balance due of $36,000 and $65,922 respectively, which is included in accounts payable related party. </p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">For the year ended December 31, 2019 we had $4,500 in accounting expense respectively to “The Mosely Group.” owned by Reesa McKenzie. Ms. McKenzie is the sister of John McKenzie. As of December 31, 2019, and 2020, we had an outstanding balance due of $4,500 and $4,500 respectively, which is included in accounts payable related party. </p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of December 31, 2020, we had outstanding balances due to Joey Firestone of $37,316 for un-reimbursed business expenses. We also had an outstanding balance due to Joey Firestone of $115,000 for consulting services, which is included in accounts payable related party. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On June 14, 2019, Laya Clark (a member of our board of directors) entered into an advisor service agreement for one year for 1,000,000 shares of restricted 144 stock that was issued on October 3, 2019. </p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Common Stock</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company has authorized a total of 400,000,000 Shares of Common Stock par value $0.0001 as of the December 31, 2017 audit for Elite Beverage International. However, Elite Performance Holding Corp. is now the successor company and as of December 31, 2020 now reflects 465,000,000 (Four Hundred Sixty-Five Million) shares authorized par value $0.0001. For the period ended December 31, 2017, the Elite Beverage International Corp. issued 100,000,000 shares of Common Stock for $19,000 to its management.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On February 2, 2018, Elite Performance Holding Corp., owned and controlled by Firestone and McKenzie, acquired Elite Beverage International through a 1:2 common share exchange as follows:</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">a). 50,000,000 common shares of Elite Performance Holding Corp. in exchange for 100,000,000 common shares of Elite Beverage International Inc.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Shares Registered in the S-1 Registration Statement</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of December 31, 2020, the company has raised $1,050,222 (21,004,440 shares issued and 0 of shares to be issued) through a registered offering for $1,250,000 which was registered with the SEC through an S1 registration statement which went effective on April 23, 2019.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Restricted Shares issued</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On January 17, 2020 entered into a convertible promissory note in the amount of $157,000, with an OID of $7,500 which was recorded and debt discount and on February 12, 2020, we issued 400,000 shares of our common stock for a commitment fee valued at $20,000 which was recorded to debt discount. These shares are restricted and subject to SEC Rule 144. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On October 22, 2018 we received $2,000 for a subscription for 40,000 shares of common stock. These shares were issued in 2019 and are reflected in the Company’s current shares outstanding.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In 2020 we issued 19,254,000 common subscription shares to accredited investors for stock payable in the amount of $962,700. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In 2020 we issued 10,000 common shares for services valued at $500 to a consultant</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of December 31, 2020, we had 276,060 shares to be issued in the amount of $13,803 from stock subscriptions to accredited individuals. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In 2020 we issued 400,000 of common shares for financing fees in the amount of $20,000</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On June 26, 2019, First Fire elected to convert the remaining balance of $124,715 of the note dated December 10, 2018 for restricted shares at .05 cents a share thereby retiring the original note in full, and 2,494,300 shares were issued on July 3, 2019. No gain or loss was recorded on the conversion as the transaction was performed within the terms of the convertible note. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On February 19, 2020, we issued 100,000 shares of our common stock for services (consulting and advertising) valued at $5,000.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On June 12, 2020, we issued 50,000 shares of our common stock for services (consulting and advertising) valued at $2,500.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="margin:0px"></p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On August 01, 2020, the Company entered into an Exclusivity Agreement between its wholly owned subsidiary Elite Beverage International Corp. and Bruce Kneller for exclusive rights on a patented SmartCarb® technology (US Patent Application No. 16/785,498.) This Agreement gives the Company first right of refusal to purchase the technology upon issuance of its patent for 200,000 (valued at $.05 per share) shares to be issued in the amount of $10,000. Which were issued April 20, 2021. As of September 30, 2020 the Company elected to impair the license by $10,000 for a net balance of $0.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of December 31, 2020, we had consulting agreements that had shares to be issued, for a total of 276,060 shares. The vesting expense for these shares was $13,803 for the year ended December 31, 2020. These shares were not issued in 2020 and are reflected as shares to be issued.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Common Stock Warrants</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">None.</p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company has authorized a total of 35,000,000 Shares of Preferred Stock, $.0001 par value, which may be issued from time to time and bearing such rights, privileges and preferences as shall be designated by the Board of Directors. As of December 31, 2017, Elite Beverage International Corp had issued 10,000,000 Shares of Preferred Stock, designated as series A “Cumulative Preference ‘A’, for $1,000.</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">10,000,000 Series A preferred which carries super voting rights. Each preferred share carries 20 votes.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On February 2, 2018, Elite Performance Holding Corp., owned and controlled by Firestone and McKenzie, acquired Elite Beverage International through a 1:1 preferred share exchange as follows. 10,000,000 Series A preferred shares of Elite Performance Holdings Corp. in exchange for 10,000,000 Series A preferred shares of Elite Beverage International Inc.</p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company's financial statements are prepared using Generally Accepted Accounting Principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has recently accumulated significant losses and has negative working capital. All of these items raise substantial doubt about its ability to continue as a going concern. Management's plans with respect to alleviating the adverse financial conditions that caused management to express substantial doubt about the Company's ability to continue as a going concern are as follows:</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company is currently trying to raise new debt or equity to set up and market its line sports beverage products. If the Company is not successful in the development and implementation of a concept which produces positive cash flows from operations, the Company may be forced to continue to raise additional equity or debt financing to fund its ongoing obligations or risk ceasing doing business.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">There can be no assurance that the Company will be able to achieve its business plans, raise any more required capital or secure the financing necessary to achieve its current operating plan. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations.</p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"><strong>Stock Exchange Agreement – Elite Beverage Holdings Corp.</strong></p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>On February 2, 2018, the Company closed on an Stock Exchange Agreement (“SEA”) with Elite Beverage International Corp. Pursuant to the SEA, we purchased all of Joey Firestone and Jon McKenzie’s 100,000,000 common shares and 10,000,000 preferred shares in Elite Beverage International Corp., which gave the Company ownership of all of its assets and liabilities in exchange for 50,000,000 common shares and 10,000,000 preferred shares of the Company.</p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>Elite Beverage was formed on November 29, 2017 (inception) and is currently producing a first of its kind functional sports beverage. BYLT® (Beyond Your Limit Training) sports drink is the first to combine the benefits of hydration, muscle repair, fat oxidation, and recovery all-in-one great tasting beverage. Whether you are looking to achieve optimal performance on the baseball field, basketball court, soccer field, in the gym or any competitive sport, BYLT® provides the competitive edge every athlete actively seeks. This unique product is designed with scientifically dosed key ingredients to bridge the gap between the current sports drinks filled with sugars that have serve no function, hydration beverages and dietary supplements, without the crash from sugars and jitters from caffeine which eventually leads to a decrease in performance for athletes. BYLT® is not only designed to enhance performance and support the intense physical demand of athletes but be safe and backed by science.</p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>This acquisition was accounted for as an acquisition by entities under common control due to the fact that both Elite Performance Holdings Corp. and Elite Beverage International Corp. were and continue to be commonly held by Joey Firestone and Jon McKenzie. The ownership structure of the Company did not change as a result nor did any of its officer’s change positions.</p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>As the assets acquired were from an entity under common control, the assets from Elite Beverage International Corp. have been combined at historical cost for all periods presented, with no step-up in basis. See below for the recognition entry for the stock issued for the acquisition:</p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <table style="border-spacing:0;width:939px;word-spacing:0px;text-transform:none;text-align:left;font:10pt times new roman;margin-left:auto;orphans:2;widows:2;letter-spacing:normal;margin-right:auto;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial" cellpadding="0"> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style='font-size:10pt;font-family:times new roman;text-align:justify;margin:0px'>Additional paid-in-capital</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style='font-size:10pt;font-family:times new roman;margin:0px'> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style='font-size:10pt;font-family:times new roman;margin:0px'> </p></td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">6,000</td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style='font-size:10pt;font-family:times new roman;margin:0px'> </p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style='font-size:10pt;font-family:times new roman;text-align:justify;margin:0px'>Common stock, based on par value of $0.0001</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style='font-size:10pt;font-family:times new roman;margin:0px'> </p></td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">(5,000</td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">)</td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style='font-size:10pt;font-family:times new roman;text-align:justify;margin:0px'>Preferred stock, based on par value of $0.0001</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style='font-size:10pt;font-family:times new roman;margin:0px'> </p></td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">(1,000</td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">)</td></tr></table> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>Also pursuant to ASC Section 805-50-45, financial statements and financial information presented for the period ended have been retrospectively adjusted to furnish comparative information. Therefore, the accompanying combined financial statements as of and for the period from January 30, 2018 (inception) to December 31, 2019 present the combined financial position and results of operations of the Company and Elite Beverage International Corp. despite the acquisition occurring on February 2, 2018.</p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'> </p> <p style='font-size:10pt;font-family:times new roman;white-space:normal;word-spacing:0px;text-transform:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;margin:0px;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>Intercompany transactions occurred on or after January 30, 2018 have been eliminated. Likewise, for the period from January 30, 2018 through February 2, 2018, effects of any intra-entity transactions (between the Company and Elite Beverage International Corp.) have been eliminated, resulting in operations for the period prior to Acquisition date essentially being on the same basis as operations post Acquisition date.</p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On April 30, 2020 Elite Beverage International was approved for a loan for $201,352 through the Payment Protection Program with an interest of 0.98% per annum and a maturity date of April 23, 2022. Forgiveness in the amount of $105,868 was given on September 2, 2021.</p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On December 10, 2018 we entered into a Senior Secured Promissory note with First Fire Global Opportunities Fund, LLC in the amount of $157,500 with an interest rate of 8% per annum and a maturity date of May 10, 2019. The note carries a prepayment feature and a default provision that allows, in the event of default, for a conversion of debt into equity at a fixed price of $.05, or if publicly traded, at the rate of the lesser of $.05 or the lowest of 65% of the 20 previous trading days from the notice of conversion or based on any subsequent financings with better terms to other investors. On April 30, 2019 we paid $62,500 and on May 14, 2019 we paid an additional $7,500, bringing the outstanding balance to $87,500 and as a result we incurred a prepayment penalty of $30,000. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On June 26, 2019, First Fire elected to convert the remaining balance including a prepayment penalty of $117,500 plus accrued interest of $7,215 for a total of $124,715 of the note dated December 10, 2018 for restricted shares at .05 cents a share thereby retiring the original note in full, the total shares to be issued was 2,494,300, which were subsequently issued on July 3, 2019.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On December 12, 2018, the Company issued 400,000 shares of common stock in consideration for the execution of this note. These shares are restricted and subject to SEC Rule 144. This note had $25,500 in original discount and $20,000 in discount for the 400,000 shares issued. The original debt discount was $45,500; we amortized $40,250 for the year ended December 31, 2019 and we had a remaining debt discount of $0 as of December 31, 2019</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On January 7, 2019, we issued a convertible promissory note to David Stoccardo in the amount of $157,500 with an interest rate of 8% per annum and a maturity date of January 8, 2020. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. On January 17, 2019 the Company issued 400,000 shares of common stock in consideration for the execution of this note. These shares restricted and subject to SEC Rule 144. These shares were valued at $20,000. This note also included an original discount fee of $ $7,500, we amortized $27,199 during the year ended December 31, 2019 and had an outstanding balance of $301 as of December 31, 2019. On May 14, 2019 we paid $5,000 of principal on this note and as of December 31, 2020 the outstanding balance was $152,500. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On March 28, 2019 we issued a convertible promissory note to David Stoccardo in the amount of $7,875 with an interest rate of 8% per annum and a maturity date of January 8, 2020. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. This note included an original discount fee of $375, we amortized $375 during the year ended December 31, 2019 and had an outstanding balance of $0 as of December 31, 2019. On April 26, 2019 this note was paid in full.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On December 4, 2019, we entered into a convertible promissory note in the amount of $189,000, with an interest rate of 8% per annum and a maturity date of December 4, 2020. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. This note included an original discount fee of $9,000, we amortized $6,658 during the year ended December 31, 2020 and had an outstanding balance of $189,000 as of December 31, 2020. We also issued 500,000 commitment shares valued at $25,000 on December 11, 2019 and recorded to debt discount. We amortized $18,750 for the year ended December 31, 2020. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On January 17, 2020 we issued a convertible promissory note to The Hillyer Group Inc. in the amount of $157,500 with an interest rate of 8% per annum and a maturity date of January 17, 2021. The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion or based on any subsequent financings with better terms to other investors. On January 17, 2019 the Company issued 400,000 shares of common stock in consideration for the execution of this note. These shares are restricted and subject to SEC Rule 144. These shares were valued at $20,000. This note also included an original discount fee of $27,500, we amortized $19,603 during the year ended December 31, 2020 and had an outstanding balance of $157,500 as of December 31, 2020. </p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;margin:0px">On June 20, 2020 a complaint was filed against the company over a trademark dispute with Blume Honey Water, LLC in the Western District of Pennsylvania. The complaint alleges trademark infringement and related causes of action; in which the company asserted counterclaims for trademark infringement and related causes of action. The case is currently pending and nothing substantive has happened in the case and the parties are in settlement discussions and the case is likely to settle. There is no financial liability exposure estimated for the Company.</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="font-size:10pt;font-family:times new roman;margin:0px">The company recently discovered that a party that it settled a previous trademark litigation case with is in breach of its settlement agreement and sent a notice of breach to said party. The underlying matter is a trademark dispute for the mark B.Y.L.T. (Reg 6548069) of which the company also filed two (2) extensions of time to oppose two (2) of the party’s trademarks at the Trademark Trial and Appeal Board. A 30-day response to the notice of breach letter was due October 21, 2021. </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"><strong><em>Concentration of Major Customers</em></strong></p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">As of December 31, 2020, the Company's trade accounts receivables $0 and no concentrations.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">For the year ended December 31, 2020, the Company received approximately 41% of its revenue from one customer.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">As of December 31, 2019, the Company's trade accounts receivables were $0 and no concentrations.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">For the year ended December 31, 2019, the Company received approximately 41% of its revenue from one customer.</p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">As of December 31, 2020, the Company's inventory was $10,128, which consisted of $10,128 in raw material and $0 in finished goods.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">As of December 31, 2019, the Company's inventory was $152,330, which consisted of $152,330 in raw material and $0 in finished goods.</p></div>
<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;margin:0px">Management evaluated subsequent events as of the date of the financial statements pursuant to ASC TOPIC 855, and reported the following events:</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On January 14, 2021, the Company raised $208,800 and fully subscribed its $1,250,000 offering at .05 cents a share through its S-1 Registration Statement.</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On August 01, 2020, the Company entered into an Exclusivity Agreement between its wholly owned subsidiary Elite Beverage International Corp. and Bruce Kneller for exclusive rights on a patented SmartCarb® technology (US Patent Application No. 16/785,498.) This Agreement gives the Company first right of refusal to purchase the technology upon issuance of its patent for 200,000 shares valued at $10,000 that were issued on April 28, 2021.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On September 29, 2021, the Company entered into an Agreement to Assign Patent between its wholly owned subsidiary Elite Beverage International Corp. and Bruce Kneller for the transfer and assignment of the SmartCarb® technology (US Patent No. 11,103,522 issued August 31, 2021.) This Agreement gives the Company the intellectual property and patent ownership for 400,000 shares valued at $20,000 that were issued October 1, 2021.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On April 30, 2020 Elite Beverage International was approved for a loan for $201,352 through the Payment Protection Program with an interest of 0.98% per annum and a maturity date of April 23, 2022. Forgiveness in the amount of $105,868 was given on September 2, 2021.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of December 31, 2020 to November 10, 2021, the Company has issued a total of 13,888,000 shares of common stock. Issuances were a combination of registered shares issued for subscription agreements related to the Company’s registered offering and restricted shares issued to consultants, endorsing athletes, debt which includes the patent exclusivity and assignment mentioned above. </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a calendar year-end.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>The consolidated financial statements include the accounts and operations of the Company, and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in preparing the consolidated financial statements. The Company has made certain reclassification adjustments to conform prior periods’ Consolidated Financial Statements and Notes to the Consolidated Financial Statements to the current presentation.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>We maintain the majority of our cash accounts at a commercial bank. The total cash balance is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per commercial bank. For purposes of the statement of cash flows we consider all cash and highly liquid investments with initial maturities of three months or less to be cash equivalents.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>We grant credit to our customers located within the United States of America; and do not require collateral. Our ability to collect receivables is affected by economic fluctuations in the geographic areas and industries served by us. The allowance for doubtful trade receivables was $0 as of December 31, 2020, and $0 as of December 31, 2019 respectively.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>Inventories are valued at the lower of weighted average cost or market value. Our industry experiences change in technology, changes in market value and availability of raw materials, as well as changing customer demand. We make provisions for estimated excess and obsolete inventories based on regular audits and cycle counts of our on-hand inventory levels and forecasted customer demands and at times additional provisions are made. Any inventory write offs are charged to the reserve account or expensed to cost of goods sold. As of December 31, 2020, and December 31, 2019, we had no reserve for potentially obsolete inventory. We had $10,128 and $152,330 in inventory as of December 31, 2020, and December 31, 2019.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>We had $0 and $0 in prepaid inventory and insurance as of December 31, 2019, and December 31, 2020 respectively.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>The Company presents both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (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 including convertible debt, stock options, and warrants, using the treasury stock method, and convertible securities, 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. The Company had net losses as of December 31, 2020, so the diluted EPS excluded all dilutive potential shares in the diluted EPS because their effect is anti-dilutive. As of December 31, 2020, the company had $499,000 in convertible notes that may be converted into 9,980,000 shares of common stock. We also had 276,060 shares to be issued as of December 31, 2020.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">The carrying number of accounts payable and accrued expenses are considered to be representative of their respective fair values because of the short-term nature of these financial instruments.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Research and development costs are expensed as incurred. Research and development expenses primarily consist of salaries and benefits for research and development employees, stock-based compensation, consulting fees, lab supplies, and regulatory compliance costs. For the Year ended December 31, 2020, and for the year ended December 31, 2019 we had $0 and $124 respectively in R&D expense.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>The preparation of financial statements 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.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The company’s performance obligation is to deliver the product(s) per the contract and the obligation is met upon receipt of the product by the purchaser. Prices are predetermined plus applicable taxes and shipping costs. The company’s main source of revenue comes from online sales with the primary stream coming from the company website and Amazon. Amounts invoiced or collected in advance of product delivery or providing services are recorded as deferred revenue. The Company accrues for warranty costs, sales returns, bad debts, and other allowances based on its historical experience. For the year ended December 31, 2020 and for the year ended December 31, 2019 we had $26,154 and $35,820 respectively in revenue from the sale of our products.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Federal Income taxes are not currently due since we have had losses since inception.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act, (the “Tax Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the for the year ended December 31, 2020, using a Federal Tax Rate of 21%.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 <em>Income Taxes – Recognition.</em> Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard required by ASC 740-10-25-5.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">As of December 31, 2020, we had a net operating loss carry-forward of approximately $(3,721,005) and a deferred tax asset of $781,411 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(781,411). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2020, the Company had not taken any tax positions that would require disclosure under FASB ASC 740.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Net deferred tax assets consist of the following components as of December 31, 2020 and December 31, 2019:</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <table style="border-spacing:0;width:939px;word-spacing:0px;text-transform:none;text-align:left;font:10pt times new roman;margin-left:auto;orphans:2;widows:2;letter-spacing:normal;margin-right:auto;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial" cellpadding="0"> <tr style="height:15px"> <td> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="hdcell" style="WIDTH: 93px; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="font-size:10pt;font-family:times new roman;text-align:center;margin:0px"><strong>December 31,</strong></p> <p style="font-size:10pt;font-family:times new roman;text-align:center;margin:0px"><strong>2020</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong> </strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong> </strong></p></td> <td class="hdcell" style="WIDTH: 93px; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="font-size:10pt;font-family:times new roman;text-align:center;margin:0px"><strong>December 31,</strong></p> <p style="font-size:10pt;font-family:times new roman;text-align:center;margin:0px"><strong>2019</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px"> <td style="VERTICAL-ALIGN: top;"> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Deferred tax assets:</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="WIDTH: 93px;" colspan="2"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="WIDTH: 93px;" colspan="2"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Deferred tax assets:</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">781,411</td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">511,161</td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Valuation allowance</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(781,411</td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(511,161</td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px">Net deferred tax asset</p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: black 3px double;">$</td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 3px double; TEXT-ALIGN: right;">-</td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="WIDTH: 9px; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: black 3px double;">$</td> <td class="ffcell" style="WIDTH: 84px; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 3px double; TEXT-ALIGN: right;">-</td> <td style="WIDTH: 9px; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></table> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"><strong><em></em></strong> </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">The Company records stock-based compensation using the fair value method. Equity instruments issued to employees and the cost of the services received as consideration are accounted for in accordance with ASC 718 “Stock Compensation” and are measured and recognized based on the fair value of the equity instruments issued. All transactions with non-employees in which goods or services are the consideration received for the issuance of equity instruments are accounted for in accordance with ASC 515 “Equity-Based Payments to Non-Employees”, based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><font style='font-size:13px;white-space:normal;word-spacing:0px;text-transform:none;float:none;font-weight:400;color:rgb(0,0,0);font-style:normal;text-align:justify;orphans:2;widows:2;display:inline !important;letter-spacing:normal;text-indent:0px;font-variant-ligatures:normal;font-variant-caps:normal;-webkit-text-stroke-width:0px;text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial'>Periodically the Company assesses potential impairment of its long-lived assets, which include property, equipment and acquired intangible assets, in accordance with the provisions of ASC Topic 360, “Property, Plant and Equipment.” The Company recognizes impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying values. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. There were no such losses recognized during the Years ended December 31, 2020 and December 31, 2019.</font></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Property and equipment are carried at cost, less accumulated depreciation. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Intangible assets consist of acquired web site domains and web site content and are carried at cost, less accumulated amortization.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Depreciation and amortization are provided principally on the straight-line basis method over the estimated useful lives of the assets.</p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">The Company is reviewing the effects of following recent updates. The Company has no expectation that any of these items will have a material effect upon the financial statements.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"><em>FASB ASU 2016-02 “Leases (Topic 842)” – </em>In February 2016, the FASB issued ASU 2016-02, which requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have adopted the above ASU as of January 1, 2019.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">Update 2019-08—Compensation—Stock Compensation (Topic 718) In June 2018, the Board issued Accounting Standards Update No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, as part of its Simplification Initiative. This Update is effective for companies with fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Adoption of this ASU on January 1, 2020 did not have a material effect on our consolidated financial statements.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">On January 1, 2020, the Company adopted ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820. Adoption of this ASU did not have a material effect on our consolidated financial statements.</p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px"> </p> <p style="font-size:10pt;font-family:times new roman;text-align:justify;margin:0px;text-indent:0px">All new accounting pronouncements issued but not yet effective are not expected to have a material impact on our results of operations, cash flows or financial position with the exception of the updated previously disclosed above, there have been no new accounting pronouncements not yet effective that have significance to our consolidated financial statements.</p></div>
<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;margin-left:auto;margin-right:auto;width:85%" cellpadding="0"> <tr style="height:15px"> <td> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>December 31, </strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong> </strong></p></td> <td style="white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"><strong> </strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>December 31, </strong></p> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Deferred tax assets:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Deferred tax assets:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">781,411</td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">511,161</td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Valuation allowance</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(781,411</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(511,161</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Net deferred tax asset</p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: black 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: black 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td> <td style="BORDER-BOTTOM: black 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: black 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></table> <p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p></div>
1
10000000
50000000
100000000
781411
511161
781411
511161
0
0
-3721005
250000
0
0
499000
9980000
276000
0
124
0.21
0.35
3721005
781411
0.21
0.35
439545
50185
159752
0.06
198915
7897
12294
30693
2000
439545
65922
36000
36000
36000
1000000
4500
4500
4500
115000
37116
80300
0.06
127637
the company has raised $1,050,222 (21,004,440 shares issued and 0 of shares to be issued) through a registered offering for $1,250,000 which was registered with the SEC through an S1 registration statement which went effective on April 23, 2019.
10000
400000000
0.0001
2494300
100000000
10000
100000
50000
19000
2500
500
5000
20000
200000
10000
50,000,000 common shares of Elite Performance Holding Corp. in exchange for 100,000,000 common shares of Elite Beverage International Inc.
40000
2000
19254000
276060
276060
13803
962700
13803
400000
20000
124715
157000
7500
400000
400000
10,000,000 Series A preferred shares of Elite Performance Holdings Corp. in exchange for 10,000,000 Series A preferred shares of Elite Beverage International Inc
10000000
10000000
1000
6000
-5000
-1000
105868
0.0098
2022-04-23
201352
5000
0.0005
152500
0.08
87500
0
157500
301
25500
9000
45500
500000
400000
400000
27199
19603
40250
375
18750
6658
157500
7875
189000
157500
157500
7875
157500
0.08
0.0005
0.08
0.0005
0.08
0.08
0.0005
0.08
0.08
0.08
2019-05-10
2020-01-08
2020-12-04
2020-12-04
2020-12-04
2020-01-08
2020-01-08
Conversion of debt into equity at a fixed price of $.05, or if publicly traded, at the rate of the lesser of $.05 or the lowest of 65% of the 20 previous trading days
A conversion of debt into equity at a fixed price of $.05, or if publicly traded, at the rate of the lesser of $.05 or the lowest of 65% of the 20 previous trading
The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion
The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion
Prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion
The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion
The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion
The note carries a prepayment feature or is convertible 180 days from the date of the note, at a fixed price of $.05 or if publicly traded at the rate of the lessor of $.05 or the lowest of 65% of the lowest closing bid price for 3 trading days previous to the conversion
375
9000
27500
400000
500000
400000
25000
25000
20000
62500
30000
117500
7500
7215
124715
2494300
0
0.41
0
0.41
10128
0
152330
0
200000
201352
10000
400000
2022-04-23
20000
0.0098
105868
13888000
208800
1250000