10-K: Elite Performance Holding Corp. Focuses on Ethical Conduct and Financial Reporting in Annual 10-K Filing

Elite Performance Holding Corp.'s 10-K filing highlights the company's commitment to ethical business practices, regulatory compliance, and transparent financial reporting, while also addressing risk factors and future growth strategies.

Summary

• Elite Performance Holding Corp.'s 10-K filing outlines the company's business, risk factors, and financial performance for the year ended December 31, 2024.
• The company focuses on innovative nutritional and dietary fitness enhancement products, particularly its functional sports beverage, BYLT.
• The document details the company's code of ethics, emphasizing honest conduct, conflict of interest avoidance, and compliance with laws and regulations.
• The company acknowledges recurring losses and the need for additional capital to execute its business plan, raising substantial doubt about its ability to continue as a going concern.
• The filing discusses the competitive landscape of the functional beverage industry and the company's marketing and distribution strategies.
• The company owns the intellectual property and SmartCarb technology patent (US Patent No. 11,103,522).
• The company's revenue for the year ended December 31, 2024, was $681, a significant decrease from $42,569 in the previous year, attributed to production delays.
• The company's net loss for the year ended December 31, 2024, was $2,393,856, compared to $1,447,769 for the year ended December 31, 2023, primarily due to consulting fees.
• The company's management identified material weaknesses in internal control over financial reporting.
• The company effected a one-for-ten reverse stock split on March 17, 2025.

Sentiment

Score: 4

Explanation: The document presents a mixed sentiment. While it highlights the company's commitment to ethical practices and innovative products, it also acknowledges significant financial challenges, including recurring losses, a going concern issue, and material weaknesses in internal control. The decrease in revenue and increase in net loss contribute to a negative outlook, tempered slightly by the company's plans for future growth and strategic partnerships.

Positives

• The company owns the intellectual property and SmartCarb technology patent (US Patent No. 11,103,522), providing a competitive advantage.
• The company has contracted GBS Growth Partners to strategically implement and execute its nationwide sales and distribution.
• The company is re-launching its product after consolidating operations during the COVID-19 pandemic.
• The company has a seasoned sales team of beverage professionals and is participating in sporting events and fitness expos.
• The company is focused on expanding its online e-commerce presence.

Negatives

• The company has suffered recurring losses and has limited cash to sustain operations.
• The company's revenue decreased significantly to $681 in 2024 from $42,569 in 2023.
• The company's net loss increased to $2,393,856 in 2024 from $1,447,769 in 2023.
• The company identified material weaknesses in its internal control over financial reporting.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company operates in a highly competitive functional beverage industry with low barriers to entry.

Risks

• The company's operations are subject to risks associated with COVID-19.
• A decline in discretionary consumer spending may adversely affect the company's industry and profitability.
• The loss of key employees, particularly the CEO, could harm the business.
• The company's future success depends on attracting and retaining qualified personnel.
• The company may not be able to manage growth effectively, impacting potential profitability.
• The company may need additional financing, which it may not be able to obtain on acceptable terms.
• The company's common stock is not currently quoted on the OTC markets, meaning there is currently no stock price quote, no trading in our stock, and no liquidity.
• The company's CEO has sufficient voting power to control the vote on substantially all corporate matters.

Future Outlook

The company's future operations are contingent upon increasing revenues and raising capital for ongoing operations and the anticipated expansion of its product lines.

Management Comments

• Management plans to achieve profitability by increasing its business through retail distribution and expanding its online ecommerce presence.
• Management believes that a stronger economy, more spending by young professionals with an overall trend toward health and fitness will lead to future growth.

Industry Context

The functional beverage industry is extremely competitive and has low barriers to entry, with the company competing against larger, more established brands.

Comparison to Industry Standards

• The document mentions Celsius as a previous client of GBS Growth Partners, which is now contracted by Elite Performance Holding Corp.
• The document references market data from Mintel and Statista regarding the growth of the sports drink and nutrition/performance drink industries, providing context for the company's potential market opportunity.
• The document does not provide specific comparisons to industry standards in terms of financial performance or operational efficiency.

Corporate Governance

Legal Proceedings

• The Company discovered in September of 2021 that BYLT Basics, 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 filed two oppositions of the partys trademarks at the Trademark Trial and Appeal Board.

Related Party Transactions

• The company has related party transactions with its CEO, Joey Firestone, and other related parties, including consulting expenses, un-reimbursed business expenses, and lease agreements.
• The company had $0 in accounting expense respectively to The Mosely Group. owned by Reesa McKenzie. Ms. McKenzie is the sister of Jon McKenzie.

Stakeholder Impact

• Shareholders face risks related to the company's recurring losses, need for additional capital, and potential dilution.
• Employees' job security may be affected by the company's financial challenges and potential need for cost reductions.
• Customers may experience disruptions in product availability due to production delays.
• Suppliers and creditors face risks related to the company's ability to meet its financial obligations.

Next Steps

• The company intends to make strong efforts to maintain its brand in the industry through innovation and design.
• The company plans to launch its products in a series of region expansions.
• The company plans to hire personnel and resources to address material weaknesses in internal control.

Key Dates

Keywords

Elite Performance Holding Corp, BYLT, functional beverage, sports drink, financial reporting, risk factors, code of ethics, internal control, SmartCarb technology, 10-K filing