| Nature of Operations and Summary of Significant Accounting Policies | NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS Veroni Brands Corp. (formerly European CPG
Acquisition Corp. or Echo Sound Acquisition Corporation) (the “Company”) was incorporated on December 7, 2016 under
the laws of the state of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers
and acquisition. The Company has been in the developmental stage since inception. On August 31, 2017, the Company effected a
change in control by the redemption of 19,750,000 shares of the then outstanding 20,000,000 shares of common stock. The then current
officers and directors resigned and Igor Gabal was named the sole officer and director of the Company. Pursuant to the change in
control, the Company changed its name to European CPG Acquisition Corp. On September I, 2017, the Company issued l0,000,000 shares
of its common stock to two shareholders at par value of $0.000l and recorded share compensation of $1,000. On November 1, 2017,
the name of the Company was changed to Veroni Brands Corp. The Company has been formed to acquire, operate,
develop, grow and import premium European products into the U.S. market. Veroni Brands was created to search out unique, remarkable
and desirable premium products across Europe and make them accessible to discerning consumers in the U.S. Veroni Brands strives
to import the extraordinary and delight their consumers with experiences that had previously only been attainable in Europe. The
Company became an exclusive importer and distributor of “Iron Energy” by Mike Tyson. The beverage became available
to consumers in select Chicago area markets in May 2018 in three different flavors such as “Mojito,” “Zero Sugar”
and “Original.” The Company will be introducing other flavors of “Iron Energy” in 2019. We take pride in
the products we import and are proud to share them with our consumers. BASIS OF PRESENTATION The summary of significant accounting policies
presented below is designed to assist in understanding the Company’s unaudited condensed financial statements. These financial
statements are unaudited. In the opinion of management, the accompanying unaudited condensed financial statements and accompanying
contain all of the normal and recurring adjustments necessary to present fairly the financial position and results of operations
as of and for the periods presented. These accounting policies conform to accounting principles generally accepted in the United
States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying
unaudited condensed financial statements. Certain information and footnote disclosures
normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) were condensed or omitted pursuant to the rules and regulations of the Securities and
Exchange Commission. The results for the nine months ended September 30, 2018 are not necessarily indicative of the results to
be expected for the year ending December 31, 2018. These financial statements should be read in in conjunction with the Company’s
audited financial statements and the notes thereto included in the Company’s registration statement filed within Form S-1/A
on May 8, 2018 for the years ended December 31, 2017 and 2016. USE OF ESTIMATES The preparation of financial statements in
conformity with GAAP 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 periods. Significant items subject to such estimates and assumptions include the carrying amount
of inventory and associated reserves, and allowances in regards to revenue. Actual results could differ from those estimates. REVENUE RECOGNITION The majority of the Company’s revenue
is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control
is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within
the underlying contracts or agreements. Given the startup nature of the Company, many distributors will require that the Company
operate under consignment arrangements in the beginning of its contracts, generally for the first 90 days. Under consignment, the
Company retains control of the inventory located at the distributor and only records revenues when the distributor sells through
to the ultimate retail establishment. The Company’s general payment terms are short-term in duration. The Company does not
have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations
as of September 30, 2018. Distribution expenses to transport the Company’s
products, where applicable, and warehousing expense after manufacture are accounted for within cost of sales. CASH Cash and cash equivalents include cash on hand
and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days
or less. CONCENTRATION OF RISK Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking
institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September
30, 2018 and 2017, respectively. INVENTORY Finished Goods inventory consist of “Iron
Energy” energy drinks and is stated at the lower of actual cost (first-in, first-out method) or market. Cost includes shipping
and handling fees. Inventory at September 30, 2018 and December 31, 2017 was as follows:
September 30, 2018 December 31, 2017
Finished Goods - in warehouse $ 150,228 -
Finished Goods – consignment 14,711 -
$ 164,939 - INCOME TAXES Under ASC 740, Income
Taxes, LOSS PER COMMON SHARE Basic loss per common share excludes dilution
and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss
per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised
or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the entity. As of September
30, 2018 and December 31, 2017, there are no outstanding dilutive securities. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows guidance for accounting
for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items
that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted
guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial
statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs
(Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for
the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short
maturity of these instruments. The carrying amounts of the Company’s
financial instruments, which include cash and cash equivalents and accounts payable approximate their fair values at September
30, 2018 and December 31, 2017 due to their short-term nature and management’s belief that their carrying amounts approximate
the amount for which the assets could be sold or the liabilities could be settled. SHARE-BASED COMPENSATION The Company accounts for stock-based compensation
issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity–Based Payments to Non-Employees EMERGING GROWTH COMPANY The Company has elected to be an emerging growth
company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). Included with this
election, the Company has also elected to use the provisions within the Jobs Act that allow companies that go public to continue
to use the private company adoption date rules for new accounting policies. Should the Company obtain revenues in excess of $1
billion on an annual basis, have its non-affiliated market capitalization increase to over $700 million as of the last day of
its second quarter, or raise in excess of $1 billion in public offerings of its equity or instruments directly convertible into
its equity, it will forfeit its status under the Jobs Act as an emerging growth company. |
