Notes to the Unaudited Financial Statements
September 30, 2022
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Eline Entertainment Group, Inc. (OTC “EEGI”)
was incorporated under the laws of the State of Nevada on June 12, 1997, as Rapid Retrieval Systems, Inc. On April 25, 2001, the Company
filed an amendment to its Articles of Incorporation and changed its name to Eline Entertainment Group, Inc. In 2017, the Company converted
out of the State of Nevada and domiciled in the State of Wyoming.
Eline Entertainment Group, Inc., Inc.
operated as food service business specializing in sports and entertainment production and
distribution. Business operations for Eline Entertainment Group, Inc. were abandoned by former management and a custodianship
action, as described in the subsequent paragraph, was commenced in 2022.
On May 11,
2022, the First Judicial District Court of Laramie, Wyoming granted the Application for Appointment of Custodian as a result of the absence
of a functioning board of directors and the revocation of the Company’s charter. The order appointed Rhonda Keaveney (the “Custodian”)
custodian with the right to appoint officers and directors, negotiate and compromise debt, execute contracts, issue stock, and authorize
new classes of stock.
The court awarded custodianship to the Custodian
based on the absence of a functioning board of directors, revocation of the company’s charter, and abandonment of the business.
At this time, the Custodian appointed Rhonda Keaveney as sole officer and director.
The Custodian attempted to contact the Company’s
officers and directors through letters, emails, and phone calls, with no success.
Small Cap
Compliance, LLC (‘SCC”) is a shareholder in the Company and Rhonda Keaveney is the sole member of SCC. Rhonda Keaveney
applied to the Court for an Order appointing her as the Custodian. This application was for the purpose of reinstating EEGI’s corporate
charter to do business and restoring value to the Company for the benefit of the stockholders.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company’s unaudited condensed financial
statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.
GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect
all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position,
results of operations and cash flows of the Company as of and for the nine month period ending September 30, 2022 and not necessarily
indicative of the results to be expected for the full year ending December 31, 2022. These unaudited financial statements should be read
in conjunction with the financial statements and related notes included in the Company’s financial statements for the year ended
December 31, 2021.
Use of Estimates
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America 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.
Concentration of credit risk
Financial instruments which potentially
subject the Company to concentration of credit risk consist of cash deposits and customer receivables. The Company maintains cash
with various major financial institutions. The Company performs periodic evaluations of the relative credit standing of these
institutions. To reduce risk, the Company performs credit evaluations of its customers and maintains reserves when necessary for
potential credit losses.
Cash and cash equivalents
We consider all highly liquid securities with
original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of September 30, 2022
and December 31, 2021.
Net Income (Loss) Per Common Share
Net income (loss) per common
share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share
is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted
net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock
and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially
outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented.
Recent Accounting Pronouncements
The Company has implemented all applicable accounting
pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise
disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have
a material impact on its financial position or results of operations.
NOTE 3 - GOING CONCERN
The accompanying unaudited financial statements
have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal
course of business. The Company has no revenue and has an accumulated a deficit as of September 30, 2022. The Company requires capital
for its contemplated operational and marketing activities. The Company’s ability to raise additional capital through the future
issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated
plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue
operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company’s ability
to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome
of these uncertainties.
NOTE 4 - PREFERRED STOCK
The Company has 1,000,000 shares of preferred
stock designated Series C convertible preferred. Each share of Convertible Series C Preferred Stock is convertible into 10,000 shares
of common stock. In addition, the Convertible Series C Preferred Stock has 10,000 voters per share. There are no shares of Series C convertible
preferred issued.
On May 24, 2022, the Company filed Articles of
Amendment, with the State of Wyoming, increasing its authorized Preferred Stock from 5,000,000 shares to 10,000,000 shares. In addition,
the Company designated 1,000,000 shares of the Preferred Stock as Convertible Series D Preferred Stock, par value $0.001. Each share of
Convertible Series D Preferred Stock is convertible into 1,000 shares of common stock. In addition, the Convertible Series D Preferred
Stock has voting privileges equal to 20 times the sum of (i) the total number of shares of Common Stock which are issued and outstanding
at the time of voting, and (ii) the total number of shares of any class of Preferred stock which are issued and outstanding at the time
of voting , and (iii) divided by the total number of Series D Stock which are outstanding at the time of voting.
NOTE 5 - RELATED PARTY TRANSACTIONS
In May 2022, Ms. Keaveney was issued 1 share of
Convertible Preferred D Series Stock in the name of Small Cap Compliance, LLC, for expense reimbursement and services as custodian of
the Company.
As of September 30, 2022, the Company owes Ms.
Keaveney $2,501 for reimbursement of expenses paid on behalf of the Company.