0001753681
--12-31
10-K
2019-12-31
000-55987
ELITE PERFORMANCE HOLDING CORP.
NV
20-1801530
3301 NE 1st Ave Suite M704
Miami
FL
33137
844
426-2958
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<p style='margin:0;margin-right:107.8pt'><b>Business Overview</b></p><p style='margin:0;margin-right:107.8pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b>Our Products and Services</b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>Elite Beverages will offer <font style='background-color:#FFFFFF'>a first to market functional beverage that redefines hydration and performance drinks using a patent pending 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</font> <font style='background-color:#FFFFFF'>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.</font></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b>NOTE 2</b> -<b> ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES</b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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. As of December 31, 2019, the company had an accumulated deficit of ($2,434,098). 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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Accounting Methods</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a calendar year-end.</p><p style='margin-top:5pt;margin-bottom:5pt'><font style='background-color:#FFFFFF'><b><i>Principles of Consolidation and Basis of Presentation</i></b></font></p><p style='margin-top:5pt;margin-bottom:5pt'><font style='background-color:#FFFFFF'>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></p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Cash and Cash Equivalents</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin-top:5pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Accounts Receivable</i></b></p><p align="justify" style='margin-top:5pt;margin-bottom:0pt;margin-right:40.5pt'>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 $4,217 as of December 31, 2019, and $0 as of December 31, 2018.</p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Inventory</i></b></p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'>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. As of December 31, 2019, and December 31, 2018, we had no reserve for potentially obsolete inventory. We had $152,330 and $139,140 in inventory as of December 31, 2019, and December 31, 2018.</p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Prepaid Expenses</i></b></p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'>We had $2,638 and $2,928 in prepaid inventory and insurance as of December 31, 2019, and December 31, 2018 respectively.</p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'> </p><p align="justify" style='margin-top:0pt;margin-bottom:6pt;margin-right:40.5pt'><b><i>Basic and Diluted Loss Per Share</i></b></p><p align="justify" style='margin-top:0pt;margin-bottom:6pt;margin-right:40.5pt'>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, 2019, so the diluted EPS excluded all dilutive potential shares in the diluted EPS because their effect is anti-dilutive. As of December 31, 2019, the company had $341,500 in convertible notes that may be converted into 6,830,000 shares of common stock. We also had 16,994,000 shares to be issued as of December 31, 2019. </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Fair Value of Financial Instruments</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Research and Development</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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, 2019, and the period January 30, 2018 (Inception) through December 31, 2018 we had $124 and $77,608 respectively in R&D expense.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Use of Estimates</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Revenue Recognition</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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, licensing agreements and contracts to perform pilot studies 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 main source of revenue comes from online sales with the primary stream coming from 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, 2019 and the period January 30, 2018 (inception) through December 31, 2018 we had $35,820 and $9,900 respectively in revenue from the sale of our products.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Income Taxes</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>Federal Income taxes are not currently due since we have had losses since inception.</p><p align="justify" style='margin:0;margin-right:40.5pt'><font style='background-color:#FFFFFF'>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 period January 30, 2018 (inception) through December 31, 2019, using a Federal Tax Rate of 21%.</font></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 <i>Income Taxes – Recognition.</i>  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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>As of December 31, 2019, we had a net operating loss carry-forward of approximately $(2,434,098) and a deferred tax asset of $511,161 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 $(511,161).  FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2019, the Company had not taken any tax positions that would require disclosure under FASB ASC 740.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>Net deferred tax assets consist of the following components as of December 31, 2019 and December 31, 2018:</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><table align="center" style='border-collapse:collapse'><tr style='height:13.8pt'><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt'><p style='margin:0'> </p></td><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'>December 31, 2019</p></td><td valign="bottom" bgcolor="#80FFFF" style='padding:0.75pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'>December 31, 2018</p></td></tr><tr style='height:13.8pt'><td valign="middle" style='padding:0.75pt'><p align="justify" style='margin:0'>Deferred tax assets:</p></td><td valign="middle" style='padding:0.75pt'><p style='margin:0'> </p></td><td valign="bottom" style='padding:0.75pt'><p style='margin:0'> </p></td></tr><tr style='height:13.8pt'><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt'><p align="justify" style='margin:0'>Deferred tax assets:</p></td><td valign="bottom" bgcolor="#80FFFF" style='width:176pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:174pt'>511,161 </kbd> </p></td><td valign="middle" bgcolor="#80FFFF" style='width:163pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:161pt'>147,470 </kbd> </p></td></tr><tr style='height:13.8pt'><td valign="middle" style='padding:0.75pt'><p align="justify" style='margin:0'>Valuation allowance</p></td><td valign="bottom" style='width:176pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:174pt'>(511,161)</kbd> </p></td><td valign="middle" style='width:163pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:161pt'>(147,470)</kbd> </p></td></tr><tr style='height:14.4pt'><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt'><p align="justify" style='margin:0'>Net deferred tax asset</p></td><td valign="middle" bgcolor="#80FFFF" style='width:176pt;padding:0.75pt;border-bottom:3px double #000000'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:174pt'>- </kbd> </p></td><td valign="middle" bgcolor="#80FFFF" style='width:163pt;padding:0.75pt;border-bottom:3px double #000000'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:161pt'>- </kbd> </p></td></tr></table><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Stock-Based Compensation</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin-top:0pt;margin-bottom:6pt;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Long Lived Assets</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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, 2019 and the period January 30, 2018 (Inception) through December 31, 2018.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Property, Equipment and Intangible Assets</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'>Depreciation and amortization are provided principally on the straight-line basis method over the estimated useful lives of the assets.</p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Recently Issued Accounting Standards</i></b></p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'>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 align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><i>FASB ASU 2016-02 “Leases (Topic 842)” – </i>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 December 31, 2019.  </p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><font style='background-color:#F4F6F8'>Update 2019-08—Compensation—Stock Compensation (Topic 718) </font>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.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'>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. As of December 31, 2019, the company had an accumulated deficit of ($2,434,098). 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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Accounting Methods</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a calendar year-end.</p><p style='margin-top:5pt;margin-bottom:5pt'><font style='background-color:#FFFFFF'><b><i>Principles of Consolidation and Basis of Presentation</i></b></font></p><p style='margin-top:5pt;margin-bottom:5pt'><font style='background-color:#FFFFFF'>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></p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Cash and Cash Equivalents</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin-top:5pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Accounts Receivable</i></b></p><p align="justify" style='margin-top:5pt;margin-bottom:0pt;margin-right:40.5pt'>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 $4,217 as of December 31, 2019, and $0 as of December 31, 2018.</p>
<p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Inventory</i></b></p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'>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. As of December 31, 2019, and December 31, 2018, we had no reserve for potentially obsolete inventory. We had $152,330 and $139,140 in inventory as of December 31, 2019, and December 31, 2018.</p>
<p align="justify" style='margin-top:0pt;margin-bottom:6pt;margin-right:40.5pt'><b><i>Basic and Diluted Loss Per Share</i></b></p><p align="justify" style='margin-top:0pt;margin-bottom:6pt;margin-right:40.5pt'>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, 2019, so the diluted EPS excluded all dilutive potential shares in the diluted EPS because their effect is anti-dilutive. As of December 31, 2019, the company had $341,500 in convertible notes that may be converted into 6,830,000 shares of common stock. We also had 16,994,000 shares to be issued as of December 31, 2019. </p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Fair Value of Financial Instruments</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Research and Development</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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, 2019, and the period January 30, 2018 (Inception) through December 31, 2018 we had $124 and $77,608 respectively in R&D expense.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Use of Estimates</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'><b><i>Revenue Recognition</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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, licensing agreements and contracts to perform pilot studies 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 main source of revenue comes from online sales with the primary stream coming from 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, 2019 and the period January 30, 2018 (inception) through December 31, 2018 we had $35,820 and $9,900 respectively in revenue from the sale of our products.</p>
<p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>Net deferred tax assets consist of the following components as of December 31, 2019 and December 31, 2018:</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><table align="center" style='border-collapse:collapse'><tr style='height:13.8pt'><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt'><p style='margin:0'> </p></td><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'>December 31, 2019</p></td><td valign="bottom" bgcolor="#80FFFF" style='padding:0.75pt;border-bottom:0.5pt solid #000000'><p align="center" style='margin:0'>December 31, 2018</p></td></tr><tr style='height:13.8pt'><td valign="middle" style='padding:0.75pt'><p align="justify" style='margin:0'>Deferred tax assets:</p></td><td valign="middle" style='padding:0.75pt'><p style='margin:0'> </p></td><td valign="bottom" style='padding:0.75pt'><p style='margin:0'> </p></td></tr><tr style='height:13.8pt'><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt'><p align="justify" style='margin:0'>Deferred tax assets:</p></td><td valign="bottom" bgcolor="#80FFFF" style='width:176pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:174pt'>511,161 </kbd> </p></td><td valign="middle" bgcolor="#80FFFF" style='width:163pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:161pt'>147,470 </kbd> </p></td></tr><tr style='height:13.8pt'><td valign="middle" style='padding:0.75pt'><p align="justify" style='margin:0'>Valuation allowance</p></td><td valign="bottom" style='width:176pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:174pt'>(511,161)</kbd> </p></td><td valign="middle" style='width:163pt;padding:0.75pt;border-bottom:0.5pt solid #000000'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:161pt'>(147,470)</kbd> </p></td></tr><tr style='height:14.4pt'><td valign="middle" bgcolor="#80FFFF" style='padding:0.75pt'><p align="justify" style='margin:0'>Net deferred tax asset</p></td><td valign="middle" bgcolor="#80FFFF" style='width:176pt;padding:0.75pt;border-bottom:3px double #000000'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:174pt'>- </kbd> </p></td><td valign="middle" bgcolor="#80FFFF" style='width:163pt;padding:0.75pt;border-bottom:3px double #000000'><p style='margin:0'><kbd style='position:absolute;font:8pt Arial;margin-left:7pt'>$</kbd><kbd style='position:absolute;text-align:right;font:8pt Arial;width:161pt'>- </kbd> </p></td></tr></table><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
511161
147470
511161
147470
0
0
<p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Stock-Based Compensation</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin-top:0pt;margin-bottom:6pt;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'><b><i>Long Lived Assets</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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, 2019 and the period January 30, 2018 (Inception) through December 31, 2018.</p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Property, Equipment and Intangible Assets</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'>Depreciation and amortization are provided principally on the straight-line basis method over the estimated useful lives of the assets.</p>
<p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><b><i>Recently Issued Accounting Standards</i></b></p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'>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 align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><i>FASB ASU 2016-02 “Leases (Topic 842)” – </i>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 December 31, 2019.  </p><p align="justify" style='margin-top:6pt;margin-bottom:0pt;margin-right:40.5pt'><font style='background-color:#F4F6F8'>Update 2019-08—Compensation—Stock Compensation (Topic 718) </font>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.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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>
<p align="justify" style='margin:0;margin-right:40.5pt'><b>NOTE 3 - RELATED PARTY TRANSACTIONS</b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Loan Receivable-Related Party</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>In 2018, the company advanced $30,000 to Gifted Nutrition International, with a maturity date of August 2019. Gifted Nutrition International is a company that is owned and operated by Joey Firestone and Jon McKenzie. In October 2018 the company elected to write this off to compensation expense.</p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>Joey Firestone was paid $40,000 in compensation during 2018.</p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Accounts and Notes Payable related party</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>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. As of December 31, 2018, and December 31, 2019, the outstanding balance was $207,937 and $209,937, respectively. As of December 31, 2019, the accrued interest was $22,797. Interest expense for this note for the year ended December 31, 2019, and the period January 30, 2018 (Inception) through December 31, 2018, was $12,294 and $10,502 respectively.</p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>As of December 31, 2018, and 2019, we had outstanding balances due to Jon Mckenzie for operating expenses of the company of $208,135 and $198,914 respectively, which is included in accounts payable related party.</p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>For the year ended December 31, 2018, and 2019, we had $36,000 and $27,000 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, 2018, and 2019, we had an outstanding balance due of $9,000 and $36,000 respectively, which is included in accounts payable related party.   </p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>For the year ended December 31, 2018, and 2019 we had $6,150 and $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, 2018, and 2019, we had an outstanding balance due of $4,500 and $4,500 respectively, which is included in accounts payable related party.   </p><p align="justify" style='margin:0;margin-right:40.5pt'> As of December 31, 2019, we had outstanding balances due to Joey Firestone of $5,957 for un-reimbursed business expenses. We also had an outstanding balance due to Joey Firestone of $38,396 for consulting services, which is included in accounts payable related party. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><font style='background-color:#FFFFFF'>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. </font></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b>NOTE 4 - COMMON STOCK AND COMMON STOCK WARRANTS</b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Common Stock</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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, 2019 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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Shares Registered in the S-1 Registration Statement</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'>  </p><p align="justify" style='margin:0;margin-right:40.5pt'>As of December 31, 2019, the company has raised $954,200 (2,090,000 shares issued and 16,994,000 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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Restricted Shares issued</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On November 9, 2018, we issued 40,000 shares of common stock at $.05 per share which were subscribed for on October 9, 2018 for $2,000. These shares are restricted, and subject to SEC Rule 144.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On December 13, 2018, the company issued 400,000 shares of restricted common stock for financing fees. These shares are restricted, and subject to SEC rule 144. We valued the shares at $.05 (price of the shares issued in the private placement) due to the lack of market activity and related price.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On December 18, 2018, we issued 250,000 shares of restricted common stock per an agreement with Carter, Terry & Associates. These shares are restricted, and subject to SEC rule 144. We valued the shares at $.05 (price of the shares issued in the private placement) due to the lack of market activity and related price.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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, which was recorded to debt discount.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On October 9, 2018, we received $2,000 for a subscription for 40,000 shares of common stock. As of December 31, 2019, these shares were unissued. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On October 22, 2018, we received $2,000 for a subscription for 40,000 shares of common stock. These shares were issued in 2019.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>In 2019 we issued 2,090,000 common subscription shares to accredited investors for cash in the amount of 104,500. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>In 2019 we issued 3,660,000 common shares for services (consulting and advertising) valued at $183,001.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>As of December 31, 2019, we had 16,994,000 shares to be issued in the amount of $849,700 from stock subscriptions to accredited individuals.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>In 2019 we issued 500,000 of common shares for financing and commitment fees in the amount of $25,000.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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, the total shares to be issued was 2,494,300, which were subsequently issued on July 3, 2019. No gain or loss was recorded on the conversion as the transaction was performed within the terms of the debt agreement. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On December 4, 2019, we entered into a convertible note payable for $189,000. It bears interest at the rate of 8% per annum. It had an OID of $9,000. We also issued 500,000 shares of common stock and expensed it at $.05 as commitment fees for 25,000.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><font style='background-color:#FFFFFF'>As of December 31, 2019, we had consulting agreements that had shares to be issued, for a total of 60,440 shares. The vesting expense for these shares was $3,022 for the nine months ended December 31, 2019.</font></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b><i>Common Stock Warrants</i></b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>None.</p><p align="justify" style='margin:0;margin-left:18pt;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'><b>NOTE 5 - PREFERRED STOCK</b></p><p align="justify" style='margin-top:9.75pt;margin-bottom:0pt;margin-right:40.5pt'>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 align="justify" style='margin-top:9.75pt;margin-bottom:0pt;margin-right:40.5pt'>10,000,000 Series A preferred which carries super voting rights. Each preferred share carries 20 votes.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'> <b>NOTE 6 - GOING CONCERN</b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b>NOTE 7 – ACQUISITIONS  </b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'><b>Stock Exchange Agreement – Elite Beverage Holdings Corp.</b></p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'>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 align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'>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 align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'> </p><table align="center" style='border-collapse:collapse'><tr align="left"><td valign="bottom" style='width:232.25pt;padding:0.75pt'><p align="justify" style='margin:0'>Additional paid-in-capital</p></td><td valign="bottom" style='width:3.75pt;padding:0.75pt'><p style='margin:0'> </p></td><td valign="bottom" style='width:6pt;padding:0.75pt'><p style='margin:0'> </p></td><td valign="bottom" style='width:52pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:50pt'>6,000</kbd> </p></td><td valign="bottom" style='padding:0.75pt'><p style='margin:0'> </p></td></tr><tr align="left"><td valign="bottom" style='width:232.25pt;padding:0.75pt'><p align="justify" style='margin:0'>Common stock, based on par value of $0.0001</p></td><td valign="bottom" style='width:3.75pt;padding:0.75pt'><p style='margin:0'> </p></td><td valign="bottom" style='width:6pt;padding:0.75pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='width:52pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:50pt'>(5,000</kbd> </p></td><td valign="bottom" style='padding:0.75pt'><p align="justify" style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" style='width:232.25pt;padding:0.75pt'><p align="justify" style='margin:0'>Preferred stock, based on par value of $0.0001</p></td><td valign="bottom" style='width:3.75pt;padding:0.75pt'><p align="justify" style='margin:0'> </p></td><td valign="bottom" style='width:6pt;padding:0.75pt'><p align="justify" style='margin:0'>$</p></td><td valign="bottom" style='width:52pt;padding:0.75pt'><p style='margin:0'><kbd style='position:absolute;text-align:right;font:8pt Arial;width:50pt'>(1,000</kbd> </p></td><td valign="bottom" style='padding:0.75pt'><p align="justify" style='margin:0'>)</p></td></tr><tr align="left"><td valign="bottom" style='width:232.25pt;padding:0.75pt'><p align="justify" style='margin:0'> </p></td><td valign="bottom" style='width:3.75pt;padding:0.75pt'><p align="justify" style='margin:0'> </p></td><td valign="bottom" style='width:6pt;padding:0.75pt'><p align="justify" style='margin:0'> </p></td><td valign="bottom" style='padding:0.75pt'><p align="justify" style='margin:0'> </p></td><td valign="bottom" style='padding:0.75pt'><p align="justify" style='margin:0'> </p></td></tr></table><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'>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 align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'>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>
<p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'><b>NOTE 8 – NOTES PAYABLE</b></p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>On March 12, 2019, we entered into a production funding line of credit agreement with Gourmet Growth LLC. And received an initial advance of $150,000. This was paid in full during the year ended December 31, 2019 and the outstanding balance at December 31, 2019 was $0.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'><b>NOTE 9 – CONVERTIBLE NOTES PAYABLE</b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt;background-color:#FFFFFF'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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, 2019 the outstanding balance was $152,500. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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 $616 during the year ended December 31, 2019 and had an outstanding balance of $189,000 as of December 31, 2019. We also issued 500,000 commitment shares valued at $25,000 on December 11, 2019 and recorded to debt discount. We amortized $1,712 for the year ended December 31, 2019. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p style='margin:0'><b>NOTE 10 – COMMITMENTS AND CONTINGENCIES</b></p><p style='margin:0'> </p><p style='margin:0'>None.</p>
<p style='margin-top:0pt;margin-bottom:8pt'><b>NOTE 11 - CONCENTRATIONS</b></p><p style='margin:0'> <b><i>Concentration of Major Customers</i></b></p><p style='margin:0'> </p><p style='margin:0'>As of December 31, 2018, the Company's trade accounts receivables from one customer represented approximately 94% of its accounts receivable.</p><p style='margin:0'>For the year ended December 31, 2018, the Company received approximately 65% of its revenue from one customer.</p><p style='margin:0'> </p><p style='margin:0'>As of December 31, 2019, the Company's trade accounts receivables were $0 and no concentrations.</p><p style='margin:0'>For the year ended December 31, 2019, the Company received approximately 41% of its revenue from one customer.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p style='margin-top:0pt;margin-bottom:8pt'><b>NOTE 12 – INVENTORY</b></p><p style='margin:0;margin-right:27pt'>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><p style='margin:0;margin-right:27pt'> </p><p style='margin:0;margin-right:27pt'>As of December 31, 2018, the Company's inventory was $139,140, which consisted of $23,397 in raw material and $115,743 in finished goods.</p><p align="justify" style='margin:0;margin-right:40.5pt'> </p>
<p align="justify" style='margin:0;margin-right:40.5pt'><b>NOTE 13 - SUBSEQUENT EVENTS  </b></p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p style='margin-top:0pt;margin-bottom:8pt'>Management evaluated subsequent events as of the date of the financial statements pursuant to ASC TOPIC 855, and reported the following events:</p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>On September 4, 2020, the Company reduced their debt by $232,733 with the retirement of two 6% interest bearing notes for $178,842 and $53,891 collectively. These two notes held by the Company’s former CEO, COO and Board Director Jon McKenzie were forgiven after his departure.</p><p align="justify" style='margin-top:0pt;margin-bottom:8pt;margin-right:40.5pt'>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<i>.</i></p><p align="justify" style='margin:0;margin-right:40.5pt'>As of December 31, 2019 to May 22, 2021, the Company has issued a total of 32,352,000 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, and debt. </p><p align="justify" style='margin:0;margin-right:40.5pt'> </p><p align="justify" style='margin:0;margin-right:40.5pt'>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<font style='background-color:#FFFFFF'>®</font> 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>
0001753681
2019-01-01
2019-12-31
0001753681
2019-12-31
0001753681
2018-12-31
0001753681
2018-01-30
2018-12-31
0001753681
2018-01-29
0001753681
2019-12-31
2019-12-31
0001753681
2018-12-31
2018-12-31
iso4217:USD
xbrli:shares
iso4217:USD
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