# EDGAR Filing Document

**Accession Number:** 0001410187
**File Stem:** 0001017386-23-000093
**Filing Date:** 2023-3
**Character Count:** 92984
**Document Hash:** f96965029544808e1d7c289706c6a956
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001017386-23-000093.hdr.sgml**: 20230303

**ACCESSION NUMBER**: 0001017386-23-000093

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 38

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230303

**DATE AS OF CHANGE**: 20230303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cannonau Corp.
- **CENTRAL INDEX KEY:** 0001410187
- **STANDARD INDUSTRIAL CLASSIFICATION:** TRANSPORTATION SERVICES [4700]
- **IRS NUMBER:** 842870437
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-145876
- **FILM NUMBER:** 23703092

**BUSINESS ADDRESS:**
- **STREET 1:** 937 OLD SENECA TURNPIKE ROAD
- **CITY:** SKANEATELES
- **STATE:** NY
- **ZIP:** 13152
- **BUSINESS PHONE:** 315.558.3702

**MAIL ADDRESS:**
- **STREET 1:** 937 OLD SENECA TURNPIKE ROAD
- **CITY:** SKANEATELES
- **STATE:** NY
- **ZIP:** 13152

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PACIFIC BLUE ENERGY CORP.
- **DATE OF NAME CHANGE:** 20091116

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Descanso Agency, Inc.
- **DATE OF NAME CHANGE:** 20070820

?xml version="1.0" encoding="utf-8"?

 **UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

**12-31** 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

EXCHANGE ACT

Commission File Number: **333-145876**

**CANNONAU CORP**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** |  | **84-2870437** |
| (State or other jurisdiction of incorporation or organization) |  | (IR.S. Employer Identification No.) |
| **937 Old Seneca Turnpike Road** |  |  |
| **Skaneateles, NY** |  | **13252-9318** |
| (Address of principal executive offices) |  | (Zip Code) |
|  | **(315) 558-3702** |  |
| Registrant's telephone number Including area code | Registrant's telephone number Including area code | Registrant's telephone number Including area code |
| Securities registered pursuant to Section 12(b) of the Act: **None** | Securities registered pursuant to Section 12(b) of the Act: **None** | Securities registered pursuant to Section 12(b) of the Act: **None** |
| Securities registered pursuant to Section 12(g) of the Act. | Securities registered pursuant to Section 12(g) of the Act. | Securities registered pursuant to Section 12(g) of the Act. |
|  | **Common Stock, $0.001 Par Value** |  |
|  | (Title of class) |  |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ YES ☑No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐ YES ☑ No

**Note** – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑Yes☐ NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☐ YES ☑No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer☐ Smaller reporting company ☒ <br> Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐No☒

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter.

**Note.** If a determination as to whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances, provided that the assumptions are set forth in this Form.

**The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold as of December 31, 2022, was $435,310.**

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☒ YES☐ NO

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date ..**241,815,632 shares of common stock are outstanding as of December 31, 2022.**

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980). **None**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I** |  | |
| Item 1 | Business | 4 |
| Item 1A | Risk Factors | 5 |
| Item 1B | Unresolved Staff Comments | 5 |
| Item 2 | Properties | 5 |
| Item 3 | Legal Proceedings | 5 |
| Item 4 | Mine Safety Disclosures | 5 |
| **PARTII** |  |  |
| Item 5 | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 6 |
| Item 6. | Selected Financial Data | 7 |
| Item 7 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 8 |
| Item 7A | Quantitative and Qualitative Disclosures About Market Risk` | 10 |
| Item 8 | Financial Statements and Supplementary Data | 11 |
| Item 9 | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | 22 |
| Item 9A | Controls and Procedures | 22 |
| Item 9B | Other Information | 23 |
| **PART III** | **PART III** |  |
| Item 10 | Directors, Executive Officers and Corporate Governance | 24 |
| Item 11 | Executive Compensation | 25 |
| Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 26 |
| Item 13 | Certain Relationships and Related Transactions, and Director Independence | 26 |
| Item 14 | Principal Accounting Fees and Services | 27 |
| **PART IV** | **PART IV** |  |
| Item 15 | Exhibits, Financial Statement Schedules | 28 |
| **SIGNATURES** | **SIGNATURES** | 28 |

---

**Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995**

Information included in this Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Blue Energy Corp. (the "Company"), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

**PART I**

**ITEM 1. BUSINESS.**

**CORPORATE HISTORY**

The Company was incorporated in the State of Nevada on April 3, 2007 under the name Descanso Agency, Inc. We originally incorporated to enter into the travel industry by establishing a specialized service travel company that serves the needs of Mexican and United States wedding planners, travel agents, and clients seeking upscale personal attention at unique hotels and spas located in Mexico. Our core business plan was intended to focus on the wedding and party destination travel. However, due to a lack of available financing, the Company ceased its current operations in September 2009 relating to the travel industry and began seeking out viable alternatives.

On October 16, 2009, we filed a Certificate of Amendment with the Nevada Secretary of State to change our name to Pacific Blue Energy Corp. The name change reflected the Company's refocused business at that time as an independent alternative energy company. We began the process of approaching potential investment partners and have also began seeking out potential opportunities, including joint venture opportunities. We attempted to finance our operations through a combination of privately placed debt and/or equity. With the alignment started time of a number of positive factors including technical advances, tax incentives, rising environmental awareness and the state of the economy, the availability of clean, affordable, solar and wind powered electricity to power homes and small businesses then become a reality.

Effective November 6, 2009, the Company implemented a 4-for-1 forward split of its issued and outstanding shares of common stock, whereby every share of common stock held was exchanged for 4 shares of common stock. As a result, the issued and outstanding shares of common stock were increased from 9,250,000 prior to the forward split to 37,000,000 immediately following the forward split.

On April 5, 2010, the Company acquired a 100% interest of Ship Ahoy LLC, a limited liability company in Arizona, in exchange for $300,000 and 1,000,000 common shares of the Company. This investment was subsequently abandoned by the Company. On August 22, 2019, the Company changed its' name to Cannonau Corp. to reflect its' focus on its new CBD based products.

**OUR BUSINESS**

The Company using cutting edge nanotechnology plans to offer the most advanced Cannabidiol (CBD) for improved bioavailability and maximum benefit. We believe that our unique formulas can be easily incorporated into a wide array of products, offering customers an advantage when it counts.

**EMPLOYEES**

As of the date of this Annual Report, we have no employees.

**ITEM 1A. RISK FACTORS.**

We are a smaller reporting company and therefore not required to provide this information in our Form 10-K.

**ITEM 1B. UNRESOLVED STAFF COMMENTS.**

As of the date of this Annual Report, there are no unresolved SEC Staff comments.

**ITEM 2. DESCRIPTION OF PROPERTY**

We do not own or lease any property.

**ITEM 3. LEGAL PROCEEDINGS.**

As of the date of this Annual Report, management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Annual Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

**ITEM 4. MINE SAFETY DISCLOSURES.**

Not Applicable.

**PART II**

**ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASERS OF EQUITY SECURITIES.**

**MARKET INFORMATION**

Our common stock trades on the over the counter under the symbol "CNNC". The following table sets forth the high and low price information of the Company's common stock for the periods indicated.

---

| | | |
|:---|:---|:---|
| FISCAL YEAR ENDED DECEMBER 31, 2022: | **High** | **Low** |
| December 31, 2022 | $0.03 | $0.02 |
| September 30. 2022 | $0.03 | $0.02 |
| June 30, 2022 | $0.06 | $0.03 |
| March 31, 2022 | $0.05 | $0.03 |
| FISCAL YEAR ENDED DECEMBER 31, 2021: |  |  |
| December 31, 2021 | $0.061 | $0.05 |
| September 30. 2021 | $0.095 | $0.09 |
| June 30, 2021 | $0.17 | $0.14 |
| March 31, 2021 | $11.15 | $9.6 |

---

**SHAREHOLDERS OF RECORD**

As of December 31, 2022, there were 22shareholders of record of our common stock, not including holders who hold their shares in street name.

**DIVIDENDS**

We have never declared or paid a cash dividend. At this time, we do not anticipate paying dividends in the future. We are under no legal or contractual obligation to declare or to pay dividends, and the timing and amount of any future cash dividends and distributions is at the discretion of our Board of Directors and will depend, among other things, on our future after-tax earnings, operations, capital requirements, borrowing capacity, financial condition and general business conditions. We plan to retain any earnings for use in the operation of our business and to fund future growth. You should not purchase our Shares on the expectation of future dividends.

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

**Equity Compensation Plan Information**

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| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of**<br> **securities to be issued**<br> **upon exercise**<br> **of outstanding**<br> **options,**<br> **warrants and rights** | **Weighted-**<br> **average exercise**<br> **price of**<br> **outstanding**<br> **options, warrants**<br> **and rights** | **Number of securities**<br> **remaining available for**<br> **future issuance**<br> **under equity compensation plans**<br> **(excluding securities**<br> **reflected in column (a))** |
| Equity compensation plans approved by security holders |  | – |  |
| Equity compensation plans not approved by security holders |  | – |  |
| **Total** |  | – |  |

---

**INFORMATION RELATING TO OUTSTANDING SHARES**

As of December 31, 2022, there were 241,815,632shares of our common stock issued and outstanding.

All of our issued and outstanding common shares (of which none shares are owned by officers, directors and principal stock holders) were issued and have been held for a period in excess of six months and are eligible to be resold pursuant to Rule 144 promulgated under the Securities Act.

The resale of our shares of common stock owned by officers, directors and affiliates is subject to the volume limitations of Rule 144. In general, Rule 144 permits our affiliate shareholders who have beneficially-owned restricted shares of common stock for at least six months to sell without registration, within a three-month period, a number of shares not exceeding one percent of the then outstanding shares of common stock. Furthermore, if such shares are held for at least six months by a person not affiliated with the company (in general, a person who is not one of our executive officers, directors or principal shareholders during the three-month period prior to resale), such restricted shares can be sold without any volume limitation, provided all of the other requirements for resale under Rule 144 are applicable.

**RECENT SALES OF UNREGISTERED SECURITIES**

None

**ISSUER PURCHASE OF SECURITIES**

None.

**ITEM 6. SELECTED FINANCIAL DATA.** Not Applicable.

**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.**

***Forward Looking Statements***

This section and other parts of this Form 10-K annual report includes "forward-looking statements", that involves risks and uncertainties. All statements other than statements of historical facts, included in this Form 10-K that address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of our business and operations, plans, references to future success, reference to intentions as to future matters, and other such matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties, and other factors, many of which are beyond our control.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of such forward-looking statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results.

**Overview**

Cannonau Corp. (the "Company", "we", or "us") was incorporated under the laws of the State of Nevada on April 3, 2007. The purpose of the Company is to serve as a vehicle to effect a merger, exchange of capital stock, asset acquisition, or other business combination with a domestic or foreign private business. The company has minimal operation. The Company has a December 31 year end. As of December 31, 2022, the issued and outstanding shares of common stock totaled 241,815,632.

Certain statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

We are considered a start-up corporation. Our auditors have issued a going concern opinion in the financial statements for the year ended December 31, 2022.

**RESULTS OF OPERATIONS**

***Working Capital***

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Current Assets | $&nbsp;&nbsp;&nbsp;&nbsp; 9025 | $&nbsp;&nbsp;&nbsp;&nbsp; 8757 |
| Current Liabilities | 347260 | 261043 |
| Working Capital (Deficit) | $(338235) | $(252286) |

---

***Cash Flows***

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Cash Flows from (used in) Operating Activities | $(87448) | $(136724) |
| Cash Flows from (used in) Financing Activities | 87462 | 136702 |
| Net Increase (decrease) in Cash During Period | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94 |

---

**YEAR ENDED DECEMBER 31, 2022 COMPARED TO YEAR ENDED DECEMBER 31, 2021**

**REVENUES**

We have generated revenues of $227and $6,180 for the years ended December 31, 2022 and 2021.

**OPERATIONS AND ADMINISTRATIVE EXPENSES**

Operating expenses for the year ended December 31, 2022 were $86,086 compared with $150,050for the year ended December 31, 2021. The decrease in operating expenses for 2022 consisted of decrease in general and administrative expenses for the year ended December 31, 2022 of $9,915 from $26,065 for the year ended December 31, 2021; a decrease in compensation and benefits to $44,056 for the year ended December 31, 2022 from $49,468 for the year ended December 31, 2021; andan increase in legal and professionals of $32,116 for the year ended December 31, 2022 from $29,344 for the year ended December 31, 2021 and decrease of consultancy services cost of $0 in the year ended December 31 2022 as compared to $45,173 in the year ended December 31, 2021.

During the year ended December 31, 2022, the Company recorded a net loss of $85,950 compared with net loss of $148,638for the year ended December 31, 2021.

**LIQUIDITY AND CAPITAL RESOURCES** 

As of December 31, 2022, the Company's cash balance was $157 compared to cash balance of $143 as at December 31, 2021. As of December 31, 2022, the Company's total assets were $9,025 compared to total assets of $8,757 as at December 31, 2021. The increase in total assets for the year ended December 31, 2022 as compared to the year ended December 31, 2021 consisted of $14 increase in cash balance and anincrease in inventory for the year ended December 31, 2022 of $3,836 from $3,582 for the year ended December 31, 2021.

As of December 31, 2022, the Company had total liabilities of $335,411compared with total liabilities of $261,043 at December 31, 2021. The increase in total liabilities for the year ended December 31, 2022 consisted of a decrease in accounts payable for the year ended December 31, 2022 of $17,436from $18,681 for the year ended December 31, 2021; and an increase in due to related party for the year ended December 31, 2022 of $317,975 from $242,362 for the year ended December 31, 2021.

As of December 31, 2022, the Company has a working capital of ($326,386) compared with working capital of ($252,286) at December 31, 2021.

***Cashflow from Operating Activities***

During the year ended December 31, 2022 the Company used ($87,448) of cash for operating activities compared to ($136,724)of cash used by operating activities during the year ended December 31, 2021. The decrease in net cash used in operating activity for the year ended December 31, 2022 consisted of decrease in net loss for the year ended December 31, 2022 of $(85,950) from $(148,638) for the year ended December 31, 2021; increase in inventory for the year ended December 31, 2022 of $254 from the decrease of $15,592 for the year ended December 31, 2021; and decrease in accounts payable and accrued liabilities for the year ended December 31, 2022 of $1,245from an increase of $1,355 for the year ended December 31, 2021.

 ****

***Cashflow from Financing Activities***

During the years ended December 31, 2022 the Company's net cash provided by financing activity was $87,462compared to $136,702 cash provided by financing for year ended December 31, 2021. The decrease in net cash provided by financing activity for the year ended December 31, 2022 consisted of decrease in proceeds from related party for the year ended December 31, 2022 of $87,462(net) from $91,529 (net) for the year ended December 31, 2021; and a decrease of $0 in the issuance of common stock for the year ended December 31, 2022 as compared to issuance of $45,173for the year ended December 31, 2021.

***Subsequent Developments***

None

***Going Concern***

We have not attained profitable operations and are dependent upon the continued financial support from our shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from our future business. These factors raise substantial doubt regarding our ability to continue as a going concern**.**

**OFF BALANCE SHEET ARRANGEMENTS**

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

**CONTRACTUAL OBLIGATIONS**

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide this information.

**CRITICAL ACCOUNTING POLICIES**

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

**Stock Based Compensation**

We account for share-based compensation at fair value. Stock based compensation cost for stock options granted to employees, board members and service providers is determined at the grant date using an option pricing model. The value of the award that is ultimately expected to vest is recognized as expensed on a straight-line basis over the requisite service period. During the year ended December 31, 2022& 2021, no stock compensation was issued.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

As a "smaller reporting company", the Company is not required to provide this information.

**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**

**CANNONAU CORP.**

**(FORMERLY PACIFIC BLUE ENERGY CORP.)**

**FINANCIAL STATEMENTS**

**DECEMBER 31, 2022 AND 2021**

**C O N T E N T S**

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| | |
|:---|:---|
| Report of Independent Registered Public Accounting Firm | 12 |
| Balance Sheets for the years ended December 31, 2022 and December 31, 2021 | 13 |
| Statements of Operations for the years ended December 31, 2022 and<br> December 31, 2021 | 14 |
| Statements of Stockholders' Deficit for the years ended December 31, 2022 and December 31, 2021 | 15 |
| Statements of Cash Flows for the years ended December 31, 2022 and<br> December 31, 2021 | 16 |
| Notes to the Financial Statements | 17 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; VICTOR MOKUOLU, CPA PLLC<br> **Accounting \| Advisory \| Assurance & Audit \| Tax**<br>

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and

Stockholders of Cannonau Corp

937 Old Seneca Turnpike Road

Skaneateles, NY 13252-9318

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Cannonau Corp (the Company) as of December 31, 2022 and December 31, 2021, and the related consolidated statements of income, stockholders' equity, and cash flows for each of the two years ended December 31, 2022, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of year ended December 31, 2022 and December 31, 2021, and the results of its operations and its cash flows for each of the two years ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

**Substantial doubt about the Company's ability to continue as a going concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses since inception, has a shareholder deficit, and the Company and has not generated sufficient revenues to date to cover its operating costs – these factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

www.vmcpafirm.com \| Ph: 713.588.6622 \| Fax: 1.833.694.1494 \| ask@vmcpafirm.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; VICTOR MOKUOLU, CPA PLLC<br> **Accounting \| Advisory \| Assurance & Audit \| Tax**<br>

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

A critical audit matter is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee or the Company's governance and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating a critical audit, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. We determined that there are no critical audit matters communicated or required to be communicated to the audit committee.

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| |
|:---|
| &nbsp;&nbsp;We have served as the Company's auditor since 2022. |
| &nbsp;&nbsp;Houston, Texas |
| &nbsp;&nbsp; **March 3, 2023**<br> **PCAOB ID: 6771** |

---

www.vmcpafirm.com \| Ph: 713.588.6622 \| Fax: 1.833.694.1494 \| ask@vmcpafirm.com

&nbsp;&nbsp; **CANNONAU CORP.**<br> **Balance Sheets**<br>

---

| | | |
|:---|:---|:---|
|  | December 31, <br>2022 | December 31, <br>2021 |
| &nbsp;&nbsp;**ASSETS** |  |  |
| &nbsp;&nbsp;**Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $157 | $143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Receivable | 5032 | 5032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 3836 | 3582 |
| &nbsp;&nbsp;**Total Current Assets** | 9025 | 8757 |
| &nbsp;&nbsp;**Total Assets** | $9025 | $8757 |
| &nbsp;&nbsp;**LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| &nbsp;&nbsp;**Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $17436 | $18681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | 329824 | 242362 |
| &nbsp;&nbsp;**Total current liabilities** | 347260 | 261043 |
| &nbsp;&nbsp;**Stockholders' deficit** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock (Authorized) 10,000,000 at Par Value $.001, issued and outstanding nil as of December 31, 2022 and 2021. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock (Authorized) 290,000,000 at Par Value $.001 shares issued and outstanding 241,815,632 as of December 31, 2022 and 2021. | 241815 | 241815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issuable | 27000 | 27000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 3181117 | 3181117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (3788168) | (3702218) |
| &nbsp;&nbsp;**Total stockholders' deficit** | (338236) | (252286) |
| &nbsp;&nbsp;**Total liabilities and stockholders' deficit** | $9025 | $8757 |

---

*The accompanying notes are an integral part of these financial statements.*

 

---

| |
|:---|
| &nbsp;&nbsp; **CANNONAU CORP.**<br> **Statement of Operations**<br> **For the Year Ended December 31, 2022& 2021** |
| &nbsp;&nbsp; **CANNONAU CORP.**<br> **Statement of Operations**<br> **For the Year Ended December 31, 2022& 2021** |

---

 

---

| | | |
|:---|:---|:---|
|  | December 31, <br>2022 | December 31, <br>2021 |
| &nbsp;&nbsp;**Sales** | $227 | $6180 |
| &nbsp;&nbsp;Cost of sales | 91 | 4768 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Gross Profit** | 137 | 1412 |
| &nbsp;&nbsp;**Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 9915 | 26065 |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | 44056 | 49468 |
| &nbsp;&nbsp;&nbsp;Professional fees | 32116 | 29344 |
| &nbsp;&nbsp;&nbsp;Consultancy services |  | 45173 |
| &nbsp;&nbsp;**Total operating expenses** | 86086 | 150050 |
| &nbsp;&nbsp;**Loss from Operations** | (85950) | (148638) |
| &nbsp;&nbsp;**Other expenses (income)** |  |  |
| &nbsp;&nbsp;**Net loss** | (85950) | $(148638) |
| &nbsp;&nbsp;**Net loss per share (basic and diluted)** | (0) | (0) |
| &nbsp;&nbsp;**Weighted average shares outstanding** | 241815632 | 241377178 |

---

*The accompanying notes are an integral part of these financial statements.*

&nbsp;&nbsp; **CANNONAU CORP.**<br> **Statement of Cashflows**<br> **For the Year Ended December 31, 2022& 2021**<br>

---

| | | |
|:---|:---|:---|
|  | December 31, <br>2022 | December 31, <br>2021 |
| &nbsp;&nbsp;**Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(85950) | $(148638) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustment for non-cash items;** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | (5032) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (254) | 15592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (1245) | 1355 |
| &nbsp;&nbsp;**Net cash used in operating activities** | (87448) | (136724) |
| &nbsp;&nbsp;**Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of equipment |  |  |
| &nbsp;&nbsp;**Net cash used in investing activities** |  |  |
| &nbsp;&nbsp;**Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from related party | 87462 | 91529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment to related party |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued against consulting services | $— | $45173 |
| &nbsp;&nbsp;**Net cash provided by financing activities** | 87462 | 136702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Increase (decrease) in cash** | 14 | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash at beginning of year** | 143 | 164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash at end of year** | 157 | 143 |
| &nbsp;&nbsp;**Supplemental cash flows disclosures:** |  |  |
| &nbsp;&nbsp;Cash paid for interest |  |  |
| &nbsp;&nbsp;Cash paid for income taxes |  |  |
| &nbsp;&nbsp;**Supplemental non-cash financing activities** |  |  |
| &nbsp;&nbsp;Shares issued to convert amounts due to related party |  |  |
| &nbsp;&nbsp;Shares issued to non-employees against consulting services |  | 45173 |

---

*The accompanying notes are an integral part of these financial statements.*

&nbsp;&nbsp; **CANNONAU CORP.**<br> **Statement of Stockholders' Deficit**<br> **For the Year Ended December 31, 2022& 2021**<br>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional Paid in Capital** | **Common Stock Issuable** | **Accumulated Deficit** | **Total** |
|  | Shares | Amount | Shares | Amount | | | | |
| &nbsp;&nbsp;**Balances, December 31, 2020** |  |  | 241377178 | $241377 | $3136382 | $27000 | $(3553580) | $(148821) |
| &nbsp;&nbsp;Shares issued to non-employees against consultancy |  |  | 438454 | $438 | $44735 |  |  | $45173 |
| &nbsp;&nbsp;Net loss for the year |  |  |  |  |  |  | (148638) | (148638) |
| &nbsp;&nbsp;**Balances, December 31, 2021** |  |  | 241815632 | 241815 | 3181117 | 27000 | (3702218) | (252286) |
| &nbsp;&nbsp;Balances, December 31, 2021 |  |  | 241815632 | $241812 | $3181117 | $27000 | $(3702218) | $(252286) |
| &nbsp;&nbsp;Net loss for the year |  |  |  |  |  |  | (85950) | (85950) |
| &nbsp;&nbsp;**Balances, December 31, 2022** |  |  | 241815632 | 241815 | 3181117 | 27000 | (3788168) | (338236) |

---

*The accompanying notes are an integral part of these financial statements.*

**CANNONAU CORP.**

**NOTES TO THE FINANCIAL STATEMENTS**

**DECEMBER 31, 2022 AND 2021** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Nature of Operations and Continuance of Business**

Cannonau Corp. (the "Company") was incorporated under the laws of the State of Nevada on April 3, 2007 as Pacific Blue Energy Corp. On April 5, 2010, the Company acquired a 100% interest of Ship Ahoy LLC, a limited liability company in Arizona, in exchange for $300,000 and 1,000,000 common shares of the Company. This investment was subsequently abandoned by the Company and therefore no longer reflecting in these financial statements. The Company is currently developing CBD based products. On August 22, 2019, the Company changed its' name to Cannonau Corp. to reflect its' focus on its new CBD based products.

*Going Concern*

 

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated sufficient revenues to date to cover its operating cost and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. As of December 31, 2022, the Company had minimal revenues and an accumulated deficit of $3,788,168 and a working capital of deficit of $238,336. As of December 31, 2021, the Company had minimal revenues and an accumulated deficit of $3,788,168 and a working capital of deficit of $238,336. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's future business. These factors raise substantial doubt regarding the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Summary of Significant Accounting Policies**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Basis of Presentation and Principles of Consolidation

These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and are expressed in US dollars. The Company's fiscal year-end is December 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States 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. The Company regularly evaluates estimates and assumptions related to the recoverability of its long-lived assets, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Revenue Recognition

Management uses the 5 steps framework of ASC 606 to recognize revenue, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identify contract with customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Approval (in writing, orally, or in accordance with other customary business
practices) and commitment of the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Identification of the rights of the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Identification of the payment terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Contract has commercial substance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Probable that the entity will collect the consideration to which it will
be entitled in exchange for the product that will be transferred to the customer.

**CANNONAU CORP.**

**NOTES TO THE FINANCIAL STATEMENTS**

**DECEMBER 31, 2022 AND 2021**

**2. Summary of Significant Accounting Policies (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Revenue Recognition (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Identify performance obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. At contract inception, management assesses the product promised in a contract
with a customer and identifies each promise as a performance obligation to transfer to the customer either: a) A product (or a bundle
of products) that is distinct b) A series of distinct products that are substantially the same and that have the same pattern of transfer
to the customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Determined expected transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The transaction price is the amount of consideration to which an entity
expects to be entitled in exchange for transferring promised goods to a customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Allocate to performance obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Once the separate performance obligations are identified and the transaction
price has been determined, management allocates the transaction price to the performance obligations in proportion to their standalone
selling prices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Recognize revenue upon transfer of control over goods

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. management recognizes revenue only when it satisfies a performance obligation
by transferring a promised good to a customer. A good or service is considered to be transferred when the customer obtains control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The standard defines control as an entity's ability to direct the
use of, and obtain substantially all of the remaining benefits from, an asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Control is assessed primarily from the customer's perspective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of material consumed to make that product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Basic and Diluted Net Loss Per Share

The Company computes net loss per share in accordance with ASC 260, *Earnings Per Share,* which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Financial Instruments

ASC 820, *"Fair Value Measurements",* requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:

*Level 1*

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

*Level 2*

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

**CANNONAU CORP.**

**NOTES TO THE FINANCIAL STATEMENTS**

**DECEMBER 31, 2022 AND 2021**

**2. Summary of Significant Accounting Policies (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Financial Instruments (continued)

 

*Level 3*

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company's financial instruments consist principally of cash, accounts payable, and amounts due to related parties. Pursuant to ASC 820, the fair value of our cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) Inventory

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first in first out method and net realizable value is the estimated selling price less costs of disposal in the ordinary course of business. The cost of inventories includes direct costs plus shipping and packaging materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Stock-based compensation

 ****

In accordance with ASC No. 718, Compensation – Stock Compensation ("ASC 718"), the Company measures the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services.

During the year ended December 31, 2022, and 2021, there were no stock based awards issued or outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) Income taxes

Income taxes are determined in accordance with the provisions of ASC 740, "Income Taxes" ("*ASC 740*"). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

For the years ended December 31, 2022 and 2021, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2022, the Company did not have any significant unrecognized uncertain tax positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) Commitments and contingencies

The Company follows ASC 440 & ASC 450, subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies and commitments respectively. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

**CANNONAU CORP.**

**NOTES TO THE FINANCIAL STATEMENTS**

**DECEMBER 31, 2022 AND 2021**

**2. Summary of Significant Accounting Policies (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) Commitments and contingencies (continued)

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) Reclassification

Certain prior period amounts have been reclassified to conform to current presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) Recently Issued Accounting Guidance

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Share Capital**

***Preferred stock***

The Company is authorized to issue 10,000,000 shares of Preferred Stock, par value $.001 per share. As of September 30, 2022 and December 31, 2021, no shares of Preferred Stock were issued and outstanding.

***Common stock***

The company is authorized to issue 290,000,000 shares at par value of $.001 per share.

On May 21, 2019, the Company issued 100,000,000 shares of common stock to settle $5,000 in debt with a related party.

On November 5, 2019, the Company purchased and retired into treasury 15,000,000 Common Shares from Luniel De Beer for $2,000.

On January 23, 2020, the Company executed a 2,000 to 1 reverse stock split. All shares and per share information has been retroactively adjusted to reflect this reverse stock split.

On February 25, 2020, convertible notes to related parties of $3,260 were converted into 9,055,556 shares of common stock.

On March 20, 2020, convertible notes of $4,370 were converted into 12,138,888 shares of common stock.

On May 29, 2020, convertible notes to related parties of $1,142 were converted into 30,000,000 shares of common stock.

On July 6, 2020, convertible notes to related parties of $6,858 were converted into 180,473,684 shares of common stock.

On July 21, 2020, convertible notes to related parties of $362 were converted into 9,526,316 shares of common stock.

On October 2020, the Company issued 10,597,222 to the legal custodian in a private placement for $5,299.

During the year 2021, the Company issued 438,454 shares of common stock to its consultants against the consulting services rendered during the year.

As of December 31, 2022 & 2021, the Company had 241,815,632 shares of common stock issued and outstanding.

**CANNONAU CORP.**

**NOTES TO THE FINANCIAL STATEMENTS**

**DECEMBER 31, 2022 AND 2021**

&nbsp;&nbsp;&nbsp;&nbsp;**4. Income Taxes**

The Company has a net operating loss carried forward of approximately $3,788,168 available to offset taxable income in future years which commence expiring in fiscal 2027. The Company is subject to United States federal and state income taxes at an approximate rate of 21%.

There was no income tax expense for the years ended December 31, 2022 and 2021. The reconciliation and the tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at the U.S. statutory rate of 21% at December 31, 2022& 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating losses | (3788168) | $(3702218) |
| Deferred tax liability |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax assets | 795515 | 777466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less valuation allowance | (795515) | (777466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset - net valuation allowance |  | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5. Related Party Transaction** 

In support of the Company's efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities and related parties consist of officers, shareholders and associated entities.

During the year ended December 31, 2022, related parties loaned the company $87,462 to pay for operating expenses. As at December 31, 2022 and 2021, the company owed its related parties $329,824 and $242,362 respectively. The loan is non-interest bearing, due upon demand and unsecured.

&nbsp;&nbsp;&nbsp;&nbsp;**6. Commitments and Contingencies**

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 ("2017 Tax Act"). Corporate taxpayers may carryback net operating losses (NOLs) originating between 2018 and 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act.

In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. The enactment of the CARES Act did not result in any material adjustments to our income tax provision.

&nbsp;&nbsp;&nbsp;&nbsp;**7. Subsequent Events**

The company has evaluated subsequent events for recognition and disclosure through February 25, 2023 which is the date the financial statements were available to be issued and has determined that there are no items to disclose.

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.**

None.

**ITEM 9A. CONTROLS AND PROCEDURES.**

**Evaluation of Disclosure Controls and Procedures**

We have carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer/Principal Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of December 31, 2021. Based on such evaluation, we have concluded that, as of such date, our disclosure controls and procedures were not effective to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in applicable SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer/Principal Financial Officer, as appropriate, to allow timely discussions regarding required disclosure.

**Management's Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining internal control over financial reporting for our internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over our financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately and fairy reflect our transactions.

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorization of our management and directors; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

All internal control systems, no matter how well designed, have inherent limitations, including the possibility of human error or circumvention through collusion of improper overriding of controls. Therefore, even those internal control systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of internal control may vary over time.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2022. In making its assessment of internal control over financial reporting, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013") in *Internal-Control-Integrated Framework* and implemented a process to monitor and assess both the design and operating effectiveness of our internal controls. Based on this assessment, management believes that as of December 31, 2022, our internal control over financial reporting was not effective.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over financial reporting as of December 31, 2022, the Company determined that there were control deficiencies that constituted material weaknesses, as described below.

(1) *We do not have an Audit Committee* – While not being legally obligated to have an audit committee, it is the management's view that such a committee, including a financial expert member, is an utmost important entity level control over the Company's financial statement. Currently the Board of Directors acts in the capacity of the Audit Committee, and does not include a member that is considered to be independent of management to provide the necessary oversight over management's activities

(2) We did not maintain enough skilled accounting resources supporting the financial close and reporting processes to ensure (i) changes and entry to spreadsheets utilized in the financial reporting process were properly reviewed, (ii) significant estimates and judgments were adequately supported, reviewed, approved and evaluated against actual experiences, (iii) effective and timely analysis and reconciliation of significant accounts, and (iv) a proper review of period close entries and procedures

We have instituted remediation plan which involves reeducating our management, the accounting staff, and the administrative staff as to the elements of a completed sale. We increased the oversight of the process by increasing the frequency of involvement of outside accounting consultants. Internal systems are being put into place to track and document significant dates, such as delivery, installation and customer acceptance. In addition, the bookkeeping system has been modified so that all sales of extended warranties are automatically recorded as deferred revenue and that the amount of revenue that is ultimately recognized as warranty revenue is as the result of an analysis of the significant aspects of the warranty such as coverage and period.

**Changes in Internal Control Over Financial Reporting**

Our management has evaluated, with the participation of our Chief Executive Officer/Chief Financial Officer, changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the fourth quarter of 2022. In connection with such evaluation, there have been no changes to our internal control over financial reporting that occurred since the beginning of our fourth quarter of 2021 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting. While there have been no changes, we have assessed our internal controls as being deficient and will be taking steps beginning in 2023 to remedy such deficiencies.

**ITEM 9B. OTHER INFORMATION.**

There are no further disclosures.

**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.**

**Directors and Executive Officers**

The following table includes the names and positions held of our executive officers and directors who served during the years ended December 31, 2021 and/or December 31, 2022 and their current ages:

---

| | | | |
|:---|:---|:---|:---|
| **NAME** | **AGE** | **POSITION** | **DIRECTOR SINCE** |
| Carman J. Carbona | 59 | Chief Executive & Chief Financial Officer and Director | 2018 |

---

**Carmen Joseph Carbona**

Carmen Joseph Carbona, 56, has been employed by Health Direct, a division of Kinney Drugs, since 2005 as a Pharmaceutical Representative providing hospitals, nursing homes, group homes and clinics with pharmaceutical supplies.

**INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS**

None of our directors, executive officers or control persons has been involved in any of the legal proceedings required to be disclosed in Item 401 of Regulation S-K, during the past five years.

------

**CORPORATE GOVERNANCE MATTERS**

**Audit Committee**

The board of directors does not have an audit committee, and the functions of the audit committee are currently performed by our Corporate Secretary, with assistance by expert independent accounting personnel and oversight by the entire board of directors. We are not currently subject to any law, rule or regulation requiring that we establish or maintain an audit committee.

**Board of Directors Independence**. Our board of directors currently consists of one member. We are not currently subject to any law, rule or regulation requiring that all or any portion of our board of directors include "independent" directors.

**Audit Committee Financial Expert**. Our board of directors has determined that we do not have an audit committee financial expert serving on our audit committee within the meaning of Item 407(d)(5) of Regulation S-K. In general, an "audit committee financial expert" is an individual member of the audit committee who (a) understands generally accepted accounting principles and financial statements, (b) is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves, (c) has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to the Company's financial statements, (d) understands internal controls over financial reporting and (e) understands audit committee functions.

**Code of Ethics**

We have not adopted a code of ethics for our executive officers, directors and employees. However, our management intends to promote honest and ethical conduct, full and fair disclosure in our reports to the SEC, and compliance with applicable governmental laws and regulations.

**Nominating Committee**

We have not yet established a nominating committee. Our board of directors, sitting as a board, performs the role of a nominating committee. We are not currently subject to any law, rule or regulation requiring that we establish a nominating committee.

**Compensation Committee**

We have not established a compensation committee. Our board of directors, sitting as a board, performs the role of a compensation committee. We are not currently subject to any law, rule or regulation requiring that we establish a compensation committee.

**SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE**

Section 16(a) of the Securities Exchange Act of 1934 requires officers and directors, and persons who own more than ten percent of a registered class of our equity securities, to file reports of ownership and changes in ownership with the Commission. Officers, directors and greater than ten percent beneficial owners are required by Commission regulations to furnish us with copies of all forms they file pursuant to Section 16(a). Based solely on our review of the copies of such forms received and written representations from reporting persons required to file reports under Section 16(a), all of the Section 16(a) filing requirements applicable to such persons, with respect to fiscal year 2022, appear not to have been complied with to the best of our knowledge.

**ITEM 11. EXECUTIVE COMPENSATION.**

None.

---

| | | |
|:---|:---|:---|
| **Name** | **Salary** | **Position** |
| Carman J. Carbona | $0 | As Chief Executive & Chief Financial Officer and Director |

---

**SUMMARY COMPENSATION TABLE** ‡

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Fiscal**<br> **Year** | **Salary**<br> **($)** | **Bonus**<br> **($)** | **Stock**<br> **Awards**<br> **($)** | **Option**<br> **Awards**<br> **($)** | **Nonequity**<br> **Incentive**<br> **Plan**<br> **Compen-**<br> **sation ($)** | **Non-**<br> **Qualified**<br> **Deferred**<br> **Compen-**<br> **sation**<br> **Earnings**<br> **($)** | **All**<br> **Other**<br> **Compen-**<br> **sation**<br> **($)** | **Total**<br> **($)** |
| Carman J. Carbona | 2021 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| (Chief Executive & Chief Financial Officer and Director | 2022 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |

---

**EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL ARRANGEMENTS**

None

**Directors Compensation**

No director received compensation for services rendered in any capacity to us during the fiscal years ended December 31, 2021 and December 31, 2022.

**Indemnification of Directors and Officers**

Our Articles of Incorporation, as amended and restated, and our Bylaws provide for mandatory indemnification of our officers and directors, except where such person has been adjudicated liable by reason of his negligence or willful misconduct toward the Company or such other corporation in the performance of his duties as such officer or director. Our Bylaws also authorize the purchase of director and officer liability insurance to insure them against any liability asserted against or incurred by such person in that capacity or arising from such person's status as a director, officer, employee, fiduciary, or agent, whether or not the corporation would have the power to indemnify such person under the applicable law.

**Compensation Committee Interlocks and Insider Participation**

We have not established a compensation committee. We are not currently subject to any law, rule or regulation requiring that we establish a compensation committee.

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.**

The following tables set forth information as of December 31, 2022 regarding the beneficial ownership of our common stock each stockholder who is known by the Company to own beneficially in excess of 5% of our outstanding common stock; each director known to hold common or preferred stock; the Company's chief executive officer; and the executive officers and directors as a group. Except as otherwise indicated, all persons listed below have (i) sole voting power and investment power with respect to their shares of stock, except to the extent that authority is shared by spouses under applicable law, and (ii) record and beneficial ownership with respect to their shares of stock.

---

| | | | |
|:---|:---|:---|:---|
| <br>**NAME AND ADDRESS OF**<br>**BENEFICIAL OWNER** |<br>**TITLE**<br>**OF CLASS** | **NUMBER OF** **SHARES**<br>**BENEFICIALLY**<br>**OWNED** | **PERCENT OF** **SHARES**<br>**BENEFICIALLY**<br>**OWNED** |
| Carman J. Carbona | Common | 0 | 0 |
| 937 Old Seneca Turnpike |  |  |  |
| Skaneateles, NY 13152 |  |  |  |
| All Directors and officers as a group (1 member) | Common | 0 | 0 |

---

The above table reflects share ownership as of the most recent date. Each share of common stock has one vote per share on all matters submitted to a vote of our shareholders.

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.**

We do not have a specific policy or procedure for the review, approval, or ratification of any transaction involving related persons. We historically have sought and obtained funding from officers, directors, and family members as these categories of persons are familiar with our management and often provide better terms and conditions than we can obtain from unassociated sources. Also, we are so small that having specific policies or procedures of this type would be unworkable.

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.**

The following table shows the fees paid or accrued for the audit and other services provided by our independent registered public accounting firm.

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Audit fees | $15830 | $2500 |
| Audit related fees | 0 | 0 |
| Tax fees | 0 | 0 |
| All other fees | 0 | 0 |

---

**Audit Fees**

Audit fees represent the professional services rendered for the audit of our annual financial statements and the review of our financial statements included in quarterly reports, along with services normally provided by the accountant in connection with statutory and regulatory filings or engagements.

**Audit Related Fees**

Audit-related fees represent professional services rendered for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of our financial statements that are not reported under audit fees.

**Tax Fees**

Tax fees represent professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.

**All Other Fees**

All other fees represent fees billed for products and services provided by the principal accountant, other than the services reported for the other categories.

**PRE-APPROVAL POLICIES**

Our board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by the board of directors before the respective services were rendered. Our board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors' independence.

**PART IV**

**ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.**

The following exhibits are filed as part of this Form 10-K:

---

| | |
|:---|:---|
| [31.1](exhibit_31-1.htm) | [Rule 13a-15(e)/15d-15(e) Certification by the Chief Executive Officer](exhibit_31-1.htm) \* |
| [31.2](exhibit_31-2.htm) | [Rule 13a-15(e)/15d-15(e) Certification by the Chief Financial Officer](exhibit_31-2.htm) \* |
| [32.1](exhibit_32-1.htm) | [Certification by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit_32-1.htm) \* |
| [32.2](exhibit_32-2.htm) | [Certification by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit_32-2.htm) \* |

---

\*Filed herewith

**SIGNATURES**

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on March 3, 2023

---

| | |
|:---|:---|
| **Cannonau Corp.** | **Cannonau Corp.** |
| By: | / *s/ Carmen J. Carbona* |
|  | Carmen J. Carbona |
|  | Chief Executive Officer |
|  | (Principal executive officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

CERTIFICATION PURSUANT TO RULE 13A-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION

302 OF THE SARBANES OXLEY ACT OF 2002

I, Carmen J. Carbona, certify that:

1. I have reviewed this Form 10-K for the year ended December 31, 2022 of Cannonau Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 3, 2023.

/S/Carmen J. Carbona

Carmen J. Carbona

Certification of Principal Executive Officer

## Exhibit 31.2

**Exhibit 31.2**

CERTIFICATION PURSUANT TO RULE 13A-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION

302 OF THE SARBANES OXLEY ACT OF 2002

I, Carmen J. Carbona, certify that:

1. I have reviewed this Form 10-K for the year ended December 31, 2022 of Cannonau Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 3, 2023.

/S/Carmen J. Carbona

Carmen J. Carbona

Certification of Principal Financial Officer

## Exhibit 32.1

**Exhibit 32.1**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Cannonau Corp. (the "Company") on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "report"), I, Carmen J. Carbona, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 3<sup>rd</sup> day of March 2023.

/S/Carmen J. Carbona

Carmen J. Carbona

Certification of Principal Executive Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 ("Section 906"), or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Cannonau Corp., and will be retained Cannonau Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.1

**Exhibit 32.2**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Cannonau Corp. (the "Company") on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "report"), I, Carmen J. Carbona, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 3<sup>rd</sup> day of March 2023.

/S/Carmen J. Carbona

Carmen J. Carbona

Certification of Principal Financial Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 ("Section 906"), or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Cannonau Corp., and will be retained Cannonau Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 23.1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; VICTOR MOKUOLU, CPA PLLC<br> **Accounting \| Advisory \| Assurance & Audit \| Tax**<br>

**CONSENT OF INDEPENDENT ACCOUNTANTS**

We hereby consent to the incorporation by reference in this Annual Report on Form 10-K of Cannonau Corp for the year ended December 31, 2022 of our reports dated March 3, 2023 included in its Registration Statement on Form S-1 dated March 3, 2023 relating to the financial statements for the year ended December 31, 2022 listed in the accompanying index.

---

| |
|:---|
| ***/s/ Victor Mokuolu, CPA PLLC*** |
| &nbsp;&nbsp;Houston, Texas |
| &nbsp;&nbsp;March 3, 2023 |

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www.vmcpafirm.com \| Ph: 713.588.6622 \| Fax: 1.833.694.1494 \| ask@vmcpafirm.com