10-Q: Elite Performance Holding Corp. Reports Q1 2025 Results: Revenue Declines, Net Loss Narrows Amidst Going Concern Doubts

Elite Performance Holding Corp. reports a decrease in revenue and a narrowed net loss for the quarter ended March 31, 2025, while facing substantial doubt about its ability to continue as a going concern.

Summary

• Elite Performance Holding Corp. reported financial results for the quarter ended March 31, 2025.
• The company's revenue decreased to $0 from $70 in the same period last year.
• The net loss decreased to $281,547 from $496,619 year-over-year.
• General and administrative expenses decreased by $23,082 due to a decrease in operations.
• Consulting expenses decreased by $258,274 due to shares and warrants issued for consulting in 2024.
• Interest expenses increased by $19,795 due to additional notes outstanding.
• The company had a working capital deficit of $2,988,326 as of March 31, 2025, compared to $2,704,665 as of December 31, 2024.
• The auditor has expressed substantial doubt about the company's ability to continue as a going concern, with an accumulated deficit of $11,480,325 as of March 31, 2025.
• The company is focused on raising additional capital and implementing its business plan to address the going concern issue.
• The company effected a one-for-ten reverse stock split on March 17, 2025.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the going concern warning, decreased revenue, and working capital deficit, despite the narrowed net loss.

Positives

• The net loss decreased by $200,068 compared to the same period last year, primarily due to shares and warrants issued for services to consultants in 2024.
• General and administrative expenses decreased by $23,082 due to a decrease in operations.
• Consulting expenses decreased by $258,274 due to shares and warrants issued for consulting in 2024.

Negatives

• Revenue decreased to $0 for the three months ended March 31, 2025.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern due to an accumulated deficit of $11,480,325.
• The company had a working capital deficit of $2,988,326 as of March 31, 2025.
• The company is dependent on raising additional capital to continue operations.

Risks

• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company's future operations are contingent upon increasing revenues and raising capital.
• The company has a limited operating history, making it difficult to evaluate its business and future prospects.
• The company is exposed to risks related to economic conditions, competition, and technological advances.
• The company is currently not involved in any litigation that it believes could have a material adverse effect on its financial condition or results of operations.

Future Outlook

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

Management Comments

• Management acknowledges that there are deficiencies in disclosure controls and procedures due to the lack of personnel and outside directors.
• Management anticipates that with further resources, the Company will expand both management and the board of directors with additional officers and independent directors in order to provide sufficient disclosure controls and procedures.

Industry Context

The company operates in the sports performance, weight loss, nutritional, functional beverage, and energy markets, with its primary product being a sports beverage called B.Y.L.T.

Comparison to Industry Standards

• The document mentions that the sports drink market is expected to reach $15 billion by 2027.
• The document mentions that the Nutrition and Performance Drink Industry generated a total revenue of $9 billion.
• The document mentions that Mintel estimates sales of the category to continue to grow reaching $15 billion by 2027.
• The document mentions that 36% of individuals in the U.S. purchase a ready to drink sports drink 1 2 times a week, while 15% purchase one over 10 times a week.

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.
• Attorneys are in contact and discovery proceedings have already started to take place with trial set to take place in February 2026.

Related Party Transactions

• The Company had an outstanding balance due of $122,922 to I Know a Dude, Inc. owned by Laya Clark, a member of the Board of Directors.
• The Company had outstanding balances due to Joey Firestone for un-reimbursed business expenses, consulting services, and salary.
• The Company entered into a lease agreement with its CEO, Joey Firestone, for three cargo vans.

Stakeholder Impact

• The company's ability to continue as a going concern impacts shareholders, employees, and creditors.
• The company's success in raising capital and implementing its business plan will affect its ability to deliver value to stakeholders.

Next Steps

• The company is focused on raising additional capital and implementing its business plan.
• The company will launch its products in a series of region expansions.

Key Dates

Keywords

financial results, going concern, convertible notes, common stock, net loss, revenue, BYLT, Elite Performance Holding Corp