10-K: Elite Performance Holding Corp. 2025 10-K: No Revenue, Going Concern Doubt

Elite Performance Holding Corp. filed its 2025 10-K, reporting zero revenue, a substantial accumulated deficit, and significant going concern risks, while continuing to seek capital for operations and product development.

Summary

• Elite Performance Holding Corp. (EPH) filed its annual report for the fiscal year ended December 31, 2025.
• The company reported $0 in revenue for 2025, a significant decrease from $681 in 2024, primarily due to a lack of funding for product manufacturing.
• Cost of Goods Sold also decreased significantly to $1,304 in 2025 from $36,321 in 2024.
• Operating expenses, including legal and accounting, consulting, and general and administrative costs, totaled $992,959 in 2025.
• The company incurred a net loss of $1,197,600 for 2025, compared to a net loss of $2,393,586 in 2024.
• As of December 31, 2025, EPH had a stockholders' deficit of $3,024,191 and $1,275,217 in convertible debt, raising substantial doubt about its ability to continue as a going concern.
• The company's primary product is BYLT (Beyond Your Limit Training) sports drink, which aims to combine hydration, endurance, and recovery benefits.
• EPH is actively seeking additional capital through debt or equity financing to fund operations, manufacturing, and potential acquisitions.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as highly negative due to the company's continued lack of revenue, significant accumulated deficit, and substantial doubt about its ability to continue as a going concern, despite efforts to develop its product.

Positives

• The company has a proprietary functional sports beverage, BYLT, with unique 'SmartCarb Technology' combining Palatinose and BCAAs for sustained energy and recovery.
• BYLT is positioned in growing markets: Sports Drinks ($15 billion by 2027) and Nutrition/Performance Drinks ($15 billion by 2027).
• The company has secured intellectual property for its SmartCarb technology (US Patent No. 11,103,522).
• Management plans to increase business through retail distribution and expand its online e-commerce presence.
• The company has a strategic partnership with GBS Growth Partners, comprised of experienced beverage industry executives, for nationwide sales and distribution.
• The company has a clear product rollout strategy mapped out.
• The company has a strong focus on quality control and compliance with manufacturing standards (NSF, cGMP, FDA Registered, SQF Level III, HEPA Filtration).
• The company has a new board of directors with diverse financial and business experience.

Negatives

• The company reported $0 in revenue for the fiscal year ended December 31, 2025.
• The company has a significant accumulated deficit of $12,381,374 as of December 31, 2025.
• The company has a stockholders' deficit of $3,024,191 as of December 31, 2025.
• The company has $1,275,217 in outstanding convertible debt as of December 31, 2025.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company had no cash on hand as of December 31, 2025.
• The company's working capital deficit increased to $(2,960,223) in 2025 from $(2,704,665) in 2024.
• The company's internal controls over financial reporting were found to be ineffective due to a lack of accounting personnel, insufficient policies, lack of segregation of duties, and no formal policy for related party transactions.

Risks

• The company has had limited operations, incurred losses since inception, and has limited cash, necessitating additional capital to execute its business plan, leading to a going concern opinion in prior periods.
• A decline in discretionary consumer spending could adversely affect the sports beverage and functional beverage industry.
• Worldwide political and economic uncertainties could impact the company's ability to raise capital, demand for its products, and its ability to commercialize products.
• The loss of key employees, particularly CEO Joey Firestone, could harm the business.
• The company's future success depends on its ability to attract and retain qualified personnel.
• Growth by acquisitions involves risks, including potential failure to meet expectations, substantial costs, integration problems, and diversion of management attention.
• The company depends on its ability to identify and respond to rapidly changing consumer trends; misjudging these trends could affect market share.
• Failure to strengthen and maintain brand image could harm revenue and profitability.
• Substantial defaults by customers on accounts receivable could materially affect liquidity and results of operations.
• The company may not be able to increase sales or successfully operate its business, leading to continued losses.
• The company may need additional financing, which it may not be able to obtain on acceptable terms, potentially limiting future growth.
• The company may be unable to manage growth effectively, which could impact potential profitability.
• The company's common stock is not currently quoted on the OTC Markets, meaning there is no stock price quote, no trading, and no liquidity, which could depress the future trading price and impact the ability to raise capital.
• If quoted on the OTC Markets, the common stock will be considered a penny stock, subject to additional sale and trading regulations that may make it difficult to sell.
• Joey Firestone has sufficient voting power to control the vote on substantially all corporate matters due to his Series A preferred stock ownership.
• The company has limited accounting staff and may fail to develop or maintain an effective system of internal controls, impacting timely and accurate financial reporting and potentially preventing fraud.

Future Outlook

The company's future operations are contingent upon increasing revenues and raising capital for ongoing operations and anticipated expansion of product lines. Management plans to achieve profitability by increasing business through retail distribution and expanding its online e-commerce presence. The company is actively seeking new debt or equity financing to fund manufacturing, marketing, and potential acquisitions.

Management Comments

• The mission of Elite Performance Holding Corp. is to aggressively seek and acquire companies with niche products that are first to market and can be exploited in the $35 billion 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.
• Management believes that a stronger economy, more spending by young professionals with an overall trend toward health and fitness will lead to future growth.
• Management plans to achieve profitability by increasing its business through retail distribution and expanding its online ecommerce presence.
• Management believes that the key to our success will be to increase our revenues and available working capital.
• Management believes that the penny stock rules will discourage investor interest in and limit the marketability of our common stock.
• Management believes that the financial statements included in its reports fairly present in all material respects the Companys financial condition, results of operations and cash flows for the periods presented.

Industry Context

StockSavvy.ai notes that the functional beverage and sports drink market is substantial and growing, with significant projected market sizes by 2027. However, Elite Performance Holding Corp. faces intense competition from established players with greater resources and brand recognition. The company's strategy relies on its innovative BYLT product and its 'SmartCarb Technology' to differentiate itself in this crowded space.

Comparison to Industry Standards

• The functional beverage industry is highly competitive with low barriers to entry, and EPH competes with established sports drink brands that possess greater experience, brand recognition, and financial resources.
• The company's BYLT product aims to fill a gap by combining hydration, muscle repair, fat oxidation, and recovery in a single beverage, unlike many competitors that may require multiple supplements.
• The projected market growth for Sports Drinks ($15 billion by 2027) and Nutrition and Performance Drinks ($15 billion by 2027) indicates a strong industry trend towards these products.
• The company's reliance on a single product line (BYLT) for revenue, while competitors may have diversified portfolios, presents a risk.
• The company's lack of revenue and significant operating losses contrasts sharply with established, profitable players in the beverage industry.

Corporate Governance

Legal Proceedings

• The company is not currently involved in any litigation that it believes could have a material adverse effect on its financial condition or results of operations.
• No action, suit, proceeding, inquiry, or investigation is pending or threatened against the company or its subsidiaries that could have a material adverse effect.

Related Party Transactions

• Lease agreement with CEO Joey Firestone for three cargo vans used for delivery and distribution.
• Outstanding balance due to Laya Clark (Board member) for consulting services and un-reimbursed business expenses.
• Outstanding balance due to Joey Firestone for salary and consulting services.
• Issuance of common shares to Joey Firestone for conversion of salary.
• Forgiveness of debt by Joey Firestone recorded in accounts payable related party.
• Royalty-free trademark licensing agreement with BYLT Performance LLC (subsidiary) for shares issued to Joey Firestone and Jon McKenzie.
• Advance of $30,000 to Gifted Nutrition International (owned by Firestone and McKenzie) in 2018, written off to compensation expense.

Stakeholder Impact

• Shareholders face significant dilution risk due to potential future equity or convertible debt financing.
• Shareholders may experience substantial losses due to the illiquid nature of the common stock and its potential classification as a penny stock.
• Creditors and debt holders face increased risk due to the company's going concern issues and lack of revenue.
• Employees (currently limited to management) are subject to the company's financial instability.
• Suppliers may face payment delays or defaults given the company's cash constraints.

Next Steps

• Aggressively seek and acquire companies with niche, first-to-market products in the nutritional and sport beverage industries.
• Effectuate a business model through strategic branding and marketing to scale companies, operate them efficiently, and maximize growth, revenue, and net income.
• Increase business through retail distribution and expand online e-commerce presence.
• Secure additional capital through debt or equity financing to fund operations, manufacturing, and potential acquisitions.
• Hire additional accounting personnel and implement improved internal controls to address material weaknesses.
• Launch products in a series of regional expansions as per the BYLT Roll Out Strategy.
• Continue to develop and market its line of sports drinks.

Key Dates

Recommendation

The company's 2025 10-K reveals a dire financial situation with zero revenue, a substantial accumulated deficit, and significant going concern doubts. Despite a unique product and market potential, the lack of funding, operational challenges, and continued losses make it a highly speculative investment with a high risk of failure. Investors should consider selling or avoiding this stock until a clear path to profitability and sustainable revenue generation is demonstrated.

Keywords

functional beverage, sports drink, BYLT, SmartCarb Technology, nutritional products, dietary fitness enhancement, weight loss, energy markets