RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3 - RELATED PARTY TRANSACTIONS

Accounts and Notes Payable related party

For the six months ended June 30, 2022, and 2021, we had $9,000 and $9,000 and respectively and for the six months ended June 30, 2022, and 2021, we had $18,000 and $18,000 and 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 June 30, 2022, we had an outstanding balance due of $119,922, which is included in accounts payable related party.

As of June 30, 2022, we had outstanding balances due to Joey Firestone of $37,430 for un-reimbursed business expenses. We also had an outstanding balance due to Joey Firestone of $110,000 for consulting services, $177,083 for salary and advances of $564, which is included in accounts payable related party.

One February 1, 2021 the Company renewed the employment agreement with Joey Firestone with milestone performance bonuses in shares of restricted 144 stock.

On January 1, 2021, the Company entered into a royalty free trademark licensing agreement between Elite Beverage International Corp. and its subsidiary BYLT Performance LLC in consideration for 5,000,000 (valued at par $.0001 per share) shares to be issued in the amount of $500 which were issued April 29, 2021.

Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the ‘package of practical expedients,’ which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.

Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term.

We recognized a $114,793 right-of-use asset and $114,793 in a related lease liability as of June 30, 2022 for our related party finance lease. For our finance lease, the asset is included in other long-term assets on the balance sheet and is amortized within operating income over the lease term. The long-term component of the lease liability is included in other long-term liabilities, net, and the current component is included in other current liabilities.

The company incurred lease expense, which is included as part of selling, general and administrative expenses, of $0 and $0 for the six months ended June 30, 2022 and 2021.

The tables below present financial information associated with our lease.

	Balance Sheet			June 30,		December 31,
	Classification			2022		2021
Right-of-use assets	Other long-term assets			$	114,793	$	0
Current lease liabilities	Other current liabilities				26,837		0
Non-current lease liabilities	Other long-term liabilities				87,956		0
As of June 30, 2022, our maturities of our lease liability are as follows:
	June 30, 2022
Maturity of lease liabilities	Operating Leases
2023	$	27,717
2024		27,717
2025		27,717
2026		27,717
2027		27,717
Thereafter		21,172
Total lease payments	$	159,757
Less: Imputed interest		(49,964	)
Present value of lease liabilities	$	114,793