EDGAR 10-K Filing

Company CIK: 1071272
Filing Year: 2021
Filename: 1071272_10-K_2021_0001071272-21-000003.json

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ITEM 1. BUSINESS
Item 1. Business

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments

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ITEM 2. PROPERTIES
Item 2. Properties. We do not own any real property. Our head office is located in a leased facility in Toronto, Ontario and is not subject to a long-term lease.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings. There are no legal proceedings against the Company.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures. Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our Common Shares are listed on the Expert Market under the symbol &ldquo;EAPH&rdquo;.
Holders The number of shareholders of record of Common Shares at December 31, 2019 was 94. The number of shareholders of record is based upon the actual number of holders registered on our books at such date and does not include holders of shares in &ldquo;street names&rdquo; or persons, partnerships, associations, corporations or other entities identified in security position listings maintained by depository trust companies.
Dividends We have never declared or paid a cash dividend. At this time, we do not anticipate paying dividends in the near future.
Unregistered Sales of Securities and Use of Proceeds None.
Transfer Agent Corporate Stock Transfer, Inc. now EQ, 3200 Cherry Creek South, Unit 430, Denver, Colorado 80209 USA

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. Selected Financial Data Not applicable.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis should be read in conjunction with our financial statements and the related notes that appear in this Annual Report on Form 10-K. The following discussion contains forward-looking statements that reflect our plans, estimates and expectations. The Company&rsquo;s actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Annual Report on Form 10-K. The financial statements are prepared in accordance with United States Generally Accepted Accounting Principles.
Overview Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries. The Company previously developed and owned an FDA-approved wound-healing medical drug and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. Easton, together with BMV Medica S.A., own the exclusive distribution rights in Mexico and Latin America for two patented women's diagnostic products and a novel natural treatment for Bacterial Vaginosis, which they have sub-licensed to Bayer and Gedeon Richter. In addition, a generic cancer drugs line is being developed for sale in Mexico. The company's gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of other drugs and Cannabidiol extracts.
As part of our strategic growth plan, we will continue to explore opportunities and enter new lucrative market segments globally.
We intend to acquire complementary products, technologies or companies by identifying and evaluating potential products and technologies developed by third parties that we believe fit within our overall objective and have tremendous growth opportunity.
Revenue During the Year Ended December 31, 2019, we generated revenues of $1,555,566 as compared to $378,589 for the Year Ended December 31, 2018. The increase in revenue was attributed primarily to the contract for framing that we secured in the last quarter of 2018.
Operating Expenses During the Year Ended December 31, 2019, we had operating expenses of $523,171 as compared to operating expenses of $231,133 for the Year Ended December 31, 2018. The increase in operating expenses in 2019 compared to 2018 is primarily due to an increase in legal fees incurred on our various transactions, along with an increase in management fees.
Net Loss The Company had a net loss for the Year Ended December 31, 2019 of $323,171 as compared to a net loss of $169,227 for the Year Ended December 31, 2018.
Cost of Revenues Our cost of revenues for the Year Ended December 31, 2019 was $1,354,171 as compared to $271,683 for the Year Ended December 31, 2018.
We prepare our financial statements in accordance with US GAAP. At the time of the preparation of the financial statements, our management is required to use estimates, evaluations, and assumptions which affect the application of the accounting policy and the amounts reported for assets, obligations and expenses. Any estimates and assumptions are continually reviewed. The changes to the accounting estimates are credited during the period in which the change to the estimate is made.
Going Concern Uncertainty
Until 2019, we devoted substantially all of our efforts to acquiring technology, product rights, development and raising capital. There is no certainty as to the continuance of our revenues as a result of the false allegations and charges against our directors. The development and commercialization of our projects are expected to require substantial further expenditures. We remain dependent upon external sources for financing our operations. Since inception, we have incurred substantial accumulated losses, negative working capital, and negative operating cash flow, and have a significant shareholders&rsquo; deficit. These factors raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. We plan to finance our operations through the sale of equity and, to the extent available, short term and long-term loans. There can be no assurance that we will succeed in obtaining the necessary financing to continue our operations.
7A. Quantitative and Qualitative Disclosures About Market Risk. As a smaller reporting company, we are not required to provide this information.
Item 8. Financial Statements and Supplementary Data.
Balance Sheets
Statement of Operations
Statement of Stockholders&rsquo; Equity (Deficit)
Statement of Cash Flows
Notes to Financial Statements
Balance Sheets
EASTON PHARMACEUTICALS INC.
			Financial Statements
			For the Year Ended December 31, 2019
			(Expressed in US dollars) 		
BALANCE SHEETS
UNAUDITED December 31,
December 31,
ASSETS
Current Assets
Cash and cash equivalents $47,967 $66,303
Inventory 1,789 &mdash;&mdash;
Total Current Assets $249,756 $66,303
Long-Term Investments
		1124123 Ontario Inc. (o/a Alliance Partners) &ndash; 50.00% ownership (Note 1) 1,653,962 1,148,326
Other Assets
Prepaid Expense 1,850 742,629
Deposit on Real Estate (Note 2) 93,985 &mdash;&mdash;
Equipment (Note 3) 6,980,065 &mdash;&mdash;
Intangible Assets
Gaming software (Note 4) 250,000 250,000
Licensing right (VagiSan (VS-Sense), AmnioSense from CommonSense, Biolyse Pharma) 1,402,588 1,402,588
Acquisition right (Note 5) 6,540,000 6,540,000
Total Assets 17,172,206 10,149,846
LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses $845,100 $568,486
Bank overdraft &mdash;&mdash;
Salaries and wages payable 609,500 223,512
Total Current Liabilities 1,454,648 791,998
Other Liabilities
Promissory note(s) 1,732,462 1,732,462
Other loans 6,726,855 443,352
Due to director(s) 161,074 46,222
Total Liabilities 10,075,039 3,014,034
Stockholders&rsquo; Equity (Deficit)
Preferred Stock
			&nbsp; &nbsp;Authorized: 20,000,000 preferred shares par value $0.0001 each
			&nbsp; &nbsp;Issued: nil preferred shares &mdash;&mdash; &mdash;&mdash;
Common Stock
			&nbsp; &nbsp;Authorized: 3,000,000,000 common shares par value $0.0001 each
			&nbsp; &nbsp;Issued: 1,344,932,973 common shares (1,344,932,973 as of December 31, 2019) 134,493 121,140
Additional paid-in capital 46,595,172 46,237,706
Accumulated deficit (39,632,498) (39,223,034)
Total Stockholders&rsquo; Equity (Deficit) 7,097,167 7,135,812
Total Liabilities and Stockholders&rsquo; Equity $17,172,206 $10,149,846
Statement of Operations
EASTON PHARMACEUTICALS INC.
STATEMENT OF OPERATIONS
			For the Year Ended December 31
UNAUDITED
Sales
Service revenue (note 6) $1,248,000 $208,113
Cost of service revenue 948,480 271,683
Georgina Property Revenue &mdash;&mdash; 170,476
Food processing revenue (note 7) 307,566 &mdash;&mdash;
Cost of food processing revenue 405,691 &mdash;&mdash;
Gross Profit 200,395 106,906
Operating Expenses
Management fees 300,000 161,512
Subscription fees 6.800 2,392
Transfer agent 5,759 5,168
Professional fees 172,463 20,858
Marketing expense 5,321 1,136
General and administrative expense 33,223 40,067
Total Operating Expenses 523,566 231,133
Gain (Loss) Before Other Income (Expenses) (323,171) (124,227)
Other Income (Expenses) (45,000) &mdash;&mdash;
Total Other Income (Expenses) &mdash;&mdash; (45,000)
Net Gain (Loss) Before Taxes &mdash;&mdash; &mdash;&mdash;
Income taxes &mdash;&mdash; &mdash;&mdash;
Net Gain (Loss) $(323,171) $(169,227)
Loss per Common Share - Basic and Diluted $0.00 $0.00
Weighted Average Number
of Common Shares Outstanding:
Basic and Diluted 1,344,932,073 1,211,395,236
Statement of Stockholders&rsquo; Equity (Deficit)
EASTON PHARMACEUTICALS INC.
		STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo; EQUITY (DEFICIT)
		for the period December 31, 2006 through December 31, 2019
UNAUDITED Number
			of Shares Common
			Stock Additional
			Paid-In
			Capital Accumulated
			Deficit Total
			Stockholders&rsquo;
			Equity (Deficit)
Balance &ndash; December 31, 2006 38,421 $4 $35,148,993 $(35,588,313) $(439,316)
Net loss December 31, 2007 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (150,106) (150,106)
Balance &ndash; December 31, 2007 38,421 $4 $35,148,993 $(35,738,419) $(589,422)
Common shares issued:
&nbsp; &nbsp;-to settle promissory note 14,258,220 1,426 12,832 &mdash;&mdash; 14,258
Capital contribution &ndash; accounts payable beyond statute of limitations &mdash;&mdash; &mdash;&mdash; 886,958 &mdash;&mdash; 886,958
Net loss December 31, 2008 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (621,643) (621,643)
Balance &ndash; December 31, 2008 14,296,641 $1,430 $36,048,783 $(36,360,062) $(309,849)
Common shares issued:
&nbsp; &nbsp;-to acquire Viorra assets 36,000,000 3,600 &mdash;&mdash; &mdash;&mdash; 3,600
&nbsp; &nbsp;-to acquire Ixora assets 8,000,000 545,345 &mdash;&mdash; 546,145
&nbsp; &nbsp;-to settle promissory notes 28,516,356 2,851 47,149 50,000
Net loss December 31, 2009 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (15,665) (15,665)
Balance &ndash; December 31, 2009 86,812,997 $8,681 $36,641,277 $(36,375,727) $274,231
Net loss December 31, 2010 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (56,774) (56,774)
Balance &ndash; December 31, 2010 86,812,997 $8,681 $36,641,277 $(36,432,501) $217,457
Issued for consulting fees 1,000,000 24,900 &mdash;&mdash; 25,000
Net loss December 31, 2011 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (112,630) (112,630)
Balance &ndash; December 31, 2011 87,812,997 $8,781 $36,666,177 $(36,545,131) $129,827
Issued for consulting fees 40,000,000 4,000 196,000 &mdash;&mdash; 200,000
Net loss December 31, 2012 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (183,281) (183,281)
Balance &ndash; December 31, 2012 127,812,997 $12,781 $36,862,177 $(36,728,412) $146,546
Issued for financing cash received 231,900,000 23,190 322,049 &mdash;&mdash; 345,239
Unrealized foreign exchange gain &mdash;&mdash; &mdash;&mdash; 8,949 &mdash;&mdash; 8,949
Net loss December 31, 2013 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (346,533) (346,533)
Balance &ndash; December 31, 2013 359,712,997 $35,971 $37,193,175 $(37,074,945) $154,201
Issued for financing cash received 140,287,003 14,029 682,971 &mdash;&mdash; 697,000
Issued for debt 35,000,000 3,500 244,900 &mdash;&mdash; 248,400
Issued for management fees payable 40,000,000 4,000 280,000 &mdash;&mdash; 284,000
Issued for account payable 5,300,000 34,270 &nbsp; 34,800
Issued for long term debt 31,428,571 3,143 106,857 &mdash;&mdash; 110,000
Error correction &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; 100,000 100,000
Net loss December 31, 2014 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (360,848) (360,848)
Balance &ndash; December 31, 2014 611,728,571 $61,173 $38,542,173 $(37,335,793) $1,267,553
Issued To Medicated Markets 200,000,000 20,000 &mdash;&mdash; &mdash;&mdash; 20,000
Issued for distribution agreement 5,000,000 &mdash;&mdash; &mdash;&mdash;
Issued for director fees 60,000,000 6,000 294,000 &mdash;&mdash; 300,000
Issued for consulting fees 6,000,000 39,400 &mdash;&mdash; 40,000
Issued as BMV prepaid expense 50,000,000 5,000 245,000 &mdash;&mdash; 250,000
Net loss December 31,2015 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (599,941) (599,941)
Balance &ndash; December 31, 2015 932,728,571 $93,273 $39,120,573 $(37,935,734) $1,278,112
Net loss December 31, 2016 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (872,822) (872,822)
Balance &ndash; December 31, 2016 932,728,571 $93,273 39,120,573 $(38,808,556) $405,290
Issued for iBliss per agreement 218,000,000 21,800 6,518,200 &mdash;&mdash; 6,540,000
Net loss December 31, 2017 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (245,279) (245,279)
Balance &ndash; December 31, 2017 1,150,728,571 $115,073 $45,638,773 $(39,053,835) $6,700,011
Issued for consulting fees 60,000,000 6,000 594,000 &mdash;&mdash; 600,000
Issued to reduce shareholder loan 666,665 &nbsp; 5,000
Net loss &ndash; December 31, 2018 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (169,199) (169,199)
Balance &ndash; December 31, 2018 1,211,395,236 $121,140 $46,237,706 $(39,223,034) $7,135,812
Issued for accounts payable 44,393,138 4,439 141,215 145,654
Net profit &ndash; March 31, 2019 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; 7,878 7,878
Balance &ndash; March 31, 2019 1,255,788,374 $125,579 $46,378,921 (39,215,156) 7,289,344
Issued for accounts payable 53,333,789 5,333 150,001 155,334
Net loss &ndash; June 30, 2019 &nbsp; &mdash;&mdash; &mdash;&mdash; (94,171) (94,171)
Balance &ndash; June 30, 2019 1,309,122,163 $130,912 $46,528,922 (39,309,327) 7,350,507
Issued for accounts payable 35,810,810 3,581 66,250 &nbsp; 69,831
Net loss &ndash; December 31, 2019 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (323,171) (323,171)
Balance &ndash; December 31, 2019 1,344,932,973 $134,493 $46,595,172 (39,632,498) $7,097,167
Statement of Cash Flows
EASTON PHARMACEUTICALS INC.
				STATEMENTS OF CASH FLOWS
For the Year Ended December 31,
UNAUDITED
Cash Flows from Operating Activities
Net Income (Loss) $(323,171) $(169,199)
Increase in accounts payable and accrued expenses 382,700 3,000
Prepaid expense 3,000 (3,820)
Operating expenses paid by director(s) 13,680 &mdash;&mdash;
Non-cash settlement of debt 205,471 45,000
Net Cash Flows from Operating Activities 510,680 (6,856)
Cash Flows from Investing Activities
Deposit on real estate (18,797) &mdash;&mdash;
Net Cash Flows from Investing Activities (18,797) &mdash;&mdash;
Cash Flows from Financing Activities
Bank overdraft 1,121 &mdash;&mdash;
Net Cash Flows from Financing Activities 1,121 &mdash;&mdash;
Effect of foreign exchange on cash &mdash;&mdash; &mdash;&mdash;
Net Change in Cash and Cash Equivalents 493,004 &mdash;&mdash;
Cash and Cash Equivalents - Beginning of Year 192,452 &mdash;&mdash;
Cash and Cash Equivalents - End of Year $280,184 $156,820
NON-CASH INVESTING AND FINANCING ACTIVITIES
Stock issued to settle promissory notes payable $0 $0
SUPPLEMENTAL DISCLOSURE
Interest Paid $0 $0
Income Taxes Paid $0 $0
Common shares issued for assets $0 $0
Notes to Financial Statements
General
EASTON PHARMACEUTICALS, Inc. (the &ldquo;Company&rdquo;) was initially formed as L.A.M. Pharmaceutical, Corp. (the &ldquo;LLC&rdquo;) on July 24, 1998. From February 1, 1994 to July 24, 1998 the Company conducted its activities under the name RDN. In September 1998, the members of LLC, a Florida limited liability company, exchanged all of their interests in LLC for 6,000,000 shares of LAM Industries Inc&rsquo;s common stock. The stock exchange between the Company and the members of LLC is considered a recapitalization or reverse acquisition. Under reverse acquisition accounting, LLC was considered the acquirer for accounting and financial reporting purposes and acquired the assets and assumed the liabilities of the Company. In 2009 the Company reorganized in the state of Delaware and changed its name to LAM Industries, Inc. On March 17, 2010 the Company and its shareholders again approved and implemented a name change from LAM Industries Inc. to Easton Pharmaceuticals, Inc. and subsequently registered with FINRA for a new stock symbol. The Company&rsquo;s stock symbol was changed from LAIC to EAPH. In August of 2012, the company approved and changed corporate domicile from the State of Delaware to the State of Wyoming. The company is currently registered in the State of Wyoming.
Nature of Operations and Summary of Significant Accounting Policies
The Company serves the healthcare market internationally. The Company&rsquo;s corporate objective is to develop, license, produce and market prescription and over-the-counter products. In 2018, Easton&rsquo;s board of directors decided to diversify the Company&rsquo;s activities and enter new market segments, including real estate development, food and beverage and cannabis, through a combination of strategic acquisitions and joint ventures.
Revenue Recognition
Royalty Revenue Recognition - The Company recognizes royalty revenue based on royalty reports or related information received from the licensee and when collectability is reasonably assured.
Sales Revenue Recognition - The Company recognizes sales revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable when the product has been shipped to the customer, the sales price is fixed or determinable and collectability is reasonably assured. The Company reduces revenue for estimated customer returns.
Method of Accounting
The Company maintains its books and prepares its financial statements on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expense during the reporting period. Actual results can differ from those estimates.
Concentrations of Credit Risk
Financial instruments which potentially expose the Company to significant concentrations of credit risk consist principally of bank deposits. Cash is placed primarily in high quality short-term interest-bearing financial instruments.
Cash and Cash Equivalents
Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. The Company maintains cash and cash equivalents at financial institutions that periodically may exceed federally insured amounts.
Inventory
Inventory is comprised of finished goods and raw materials and is stated at the lower of cost or market. Cost is determined by the first-in, first-out method and market is based on the lower of replacement cost or net realizable value. If the cost of the inventories exceeds expected market value, provisions are recorded currently for the difference between the cost and the market value. These provisions are determined based on estimates. The valuation of inventories also requires the Company to estimate excess inventories and inventories that are not saleable. The determination of excess or non-saleable inventories requires the Company to estimate the future demand for the Company&rsquo;s product and consider the shelf life of the inventory. If actual demand is less than the Company&rsquo;s estimated demand, we could be required to record inventory reserves, which would have an adverse impact on the Company&rsquo;s results of operations. The Company anticipates that its inventory will be consumed through sales and marketing efforts prior to its expiry.
Property and equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. When an asset is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition is reflected in the statements of operations.
Rate of depreciation %
Production equipment 20-33
Furniture and equipment 7-15
Computers
Vehicle
Impairment of long-lived assets
The Company&rsquo;s long-lived assets are reviewed for impairment in accordance with ASC 360, &ldquo;Property, Plant and Equipment&rdquo;, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. To date the Company has not incurred any impairment losses.
Investment in other companies
Equity investments without readily determinable fair values are measured at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Periodic changes in the basis of these equity investments are reported in current earnings. In addition, at each reporting period a qualitative assessment is performed to identify impairment. When a qualitative assessment indicates an impairment exists, the Company estimates the fair value of the investment and recognizes in current earnings an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment.
Income taxes
The Company accounts for income taxes in accordance with ASC Topic 740, &ldquo;Income Taxes&rdquo;. Accordingly, deferred income taxes are determined utilizing the asset and liability method based on the estimated future tax effects of differences between the financial accounting and the tax bases of assets and liabilities under the applicable tax law. Deferred tax balances are computed using the enacted tax rates expected to be in effect when these differences reverse. Valuation allowance in respect of deferred tax assets are provided for, if necessary, to reduce deferred tax assets is amounts more likely than not to be realized.
The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, which prescribes detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise&rsquo;s financial statements. According to ASC Topic 740-10, tax positions must meet a more-likely-than-not recognition threshold. The Company&rsquo;s accounting policy is to classify interest and penalties relating to uncertain tax positions under income taxes, however the Company did not recognize such items in its fiscal 2019 and 2018 financial statements and did not recognize any liability with respect to an unrecognized tax position in its balance sheet.
Concentrations of credit risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and trade receivables as well as certain other current assets that do not amount to a significant amount. Cash and cash equivalents, which are primarily held in Dollars are deposited with major banks. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company does not have any significant off-balance-sheet concentration of credit risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Most of the Company&rsquo;s sales are made in Canada and the United States to a small number of customers. Management periodically evaluates the collectability of the trade receivables to determine the amounts that are doubtful of collection and determine a proper allowance for doubtful accounts. Accordingly, management believes that the Company&rsquo;s trade receivables do not represent a substantial concentration of credit risk.
Salaries and wages payable
Salaries and Wages payable are $609,500, as of December 31, 2019. The balance owing is unsecured and non-interest bearing. They may be converted to shares of common stock.
Due to related parties and other loans payable
Amounts due to related parties and other loans payable are unsecured, bear no interest and are payable on demand. They may be converted into shares of common stock.
Due to Director(s)
The Director(s) paid operating expenses and deposits on real estate acquisitions on behalf of the Company in the amount of $161,074. This includes prior periods as well as for the Period Ended December 31, 2019.
NOTES TO FINANCIAL STATEMENTS
Note 1: 1124123 Ontario Inc. owns 145 acres in Georgina, Ontario located at 6017 Smith Blvd. Easton owns 50% of 1124123&rsquo;s interest in the property. Easton holds a security interest in the property through a 2nd mortgage charge.
Note 2: Easton has placed $100,000 CAD deposit in trust for the purchase of 111 Brockhouse Rd., Toronto, Ontario, which is where the Company currently operates its food processing company and maintains corporate offices. A further $25,000 CAD deposit was placed for the acquisition of 16399 Airport Rd., Toronto, Ontario for the purpose of creating a beverage bottling company for infused products. The Seller was in default of his mortgage obligations and lost the property. Easton issued a Notice of Termination of the Agreement of Purchase and Sale in July 2019, but the seller&rsquo;s legal counsel has yet to release the deposits.
Note 3: Easton acquired 100% of the assets of Supreme Sweets Inc. on April 24, 2019. The Fair Market Value of the equipment was appraised at $9,119,500 CAD.
Note 4: Easton entered into an agreement in October 2018 to acquire a fully operational video slot game, as well as bingo game content. The games are currently being developed and they will be placed in operating casinos leading to daily revenue for Easton. Easton has been unable to meet its payment obligation and as a result, has not been able to place the games. The agreement is now null and void.
Note 5: Easton had entered into an agreement for the acquisition of iBliss Inc. As a result of Easton&rsquo;s inability to fulfil its obligations as per the agreement and the declining stock price of Easton&rsquo;s common shares, the agreement was restructured.
Note 6: Easton has a service agreement to frame 150 homes in Whitby, Ontario and the Service revenue is a result of this agreement. The contract has now been completed and was not renewed.
Note 7: Easton acquired 100% of Supreme Sweets Inc. on April 24, 2019 and operates a food processing company.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. Not applicable.
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 &ldquo;Exchange Act&rdquo;)) as of December 31, 2019. 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&rsquo;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.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in there being a more than remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.
Under the supervision and with the participation of our chief executive officer (our principal executive officer), management conducted an evaluation of the effectiveness of our internal control over financial reporting, as of December 19, 2019, based on the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under this framework, management concluded that our internal control over financial reporting was not effective as of the evaluation date due to the factors stated below:
Management assessed the effectiveness of our company&rsquo;s internal control over financial reporting as of the evaluation date and identified the following material weaknesses:
o Lack of proper segregation of duties due to limited personnel;
o Lack of a formal review process that includes multiple levels of review from adequate personnel with requisite expertise.
o Lack of written policies and procedures for accounting and financial reporting.
We do not have a functioning audit committee or sufficient outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.
Management is committed to improving its internal controls and will (1) continue to use third party specialists to address shortfalls in staffing and to assist the Company with accounting and finance responsibilities. In order to do so, the Company will have to raise capital to implement these controls and they will be dependent upon such capital being raised.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during the year ended December 31, 2019 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.
9B. Other Information. On October 30, 2019, the Company&rsquo;s Directors were charged by the Toronto Police as a result of false allegations made to the police by Mario Parravano and Barbara Parravano, the sellers of Supreme Sweets Inc. and 111 Brockhouse Road, Toronto. On or around August 2019, the Parravano&rsquo;s alleged that Easton had &ldquo;stolen&rdquo; their business and equipment and had &ldquo;locked them out&rdquo; of the premises. Easton&rsquo;s purchase of Supreme Sweets Inc. was handled by the Company&rsquo;s legal counsel and the transaction was completed between the parties respective legal counsel. The transaction was completed on April 24, 2019 in escrow.
PART III Item 10. Directors, Executive Officers and Corporate Governance. DIRECTORS AND EXECUTIVE OFFICERS Our directors, executive officers and key employees, and their ages as of the date of this report, are listed below. Our directors hold office for one-year terms or until their successors have been elected and qualified.
Name Position Age
Evan Karras President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer and a Director
Vince Demasi Director
The biographies of the directors and officers are set forth below as follows:
Evan Karras. Mr. Karras has been the Chief Executive Officer and a director of the Company since June 2015. Mr. Karras is a leading project developer with key strengths in the organization and implementation of small, medium and large-scale projects on an international level. He has extensive experience in investment banking, real estate, hospitality and telecommunications, among others.
Mr. Karras served as President and CEO of a specialty telecommunications company in the prepaid calling card industry. It was one of the largest prepaid long-distance calling card providers until Mr. Karras changed the direction of the company to more profitable and specialized products and services. He was instrumental in dramatically increasing the company&rsquo;s sales, raising awareness in the public markets and securing lucrative international telecom contracts for the company.
Mr. Karras participated in an international RFP for the privatization and award of casino licenses in Europe. He formed several consortiums with international hotel and gaming operators, including Sun International, Lady Luck Gaming Corporation, Playboy Enterprises, Hyatt Hotels and IMG. Mr. Karras further secured property for the participating consortiums and was instrumental in the overall development of several luxury hotel and casino resorts. Mr. Karras worked closely with DLJ and Bear Sterns in order to secure funding for those developments.
Mr. Karras was the first entrepreneur to cultivate, create and develop a multi-million-dollar network to provide multimedia services to subscribers in the Middle East and Gulf Countries. Mr. Karras negotiated agreements with the national telecommunications providers, as well as government authorities.
Mr. Karras has been instrumental in several product launches and has negotiated licensing agreements with major corporations, such as Bayer Consumer Health AG for Bayer.
Mr. Karras has been in Venture Capital and Investment Banking for over 20 years. He has syndicated and invested over $300 million in companies in various sectors, including healthcare, technology, manufacturing, financial, energy and waste management, among others.
Vince Demasi. Mr. Demasi has been a director of the Company since May 2018. Previously, for 25 years he was the president of Demasi General Contracting Inc., a successful company focusing on all aspects of residential and commercial construction in the GTA. Mr. Demasi has a great deal of experience in land development and real estate having previously directed a land development company and starting his career as a licensed real estate agent.
Mr. Demasi is also well known in his community for his philanthropic activities. He sits on a number of not-for-profit boards and runs a large Christmas food drive each year that provides food to over 500 families. In the past he was an active member of the local school board and is active in the provincial and federal political landscape.
Family Relationships
There are no family relationships among any of our executive officers or directors.
Section 16(a) Beneficial Ownership Reporting Compliance Not applicable.
CORPORATE GOVERNANCE MATTERS Audit Committee
As of the date of this Annual Report, we do not have an audit committee. We intend to establish an audit committee of the Board of Directors, which will consist of independent directors, of which at least one director will qualify as a qualified financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. The audit committee&rsquo;s duties would be to recommend to the Board of Directors the engagement of independent auditors to audit our financial statements and to review its accounting and auditing principles. The audit committee would review the scope, timing and fees for the annual audit and the results of audit examinations performed by the internal auditors and independent public accountants, including their recommendations to improve the system of accounting and internal controls. The audit committee would at all times be composed exclusively of directors who are, in the opinion of the Board of Directors, free from any relationship which would interfere with the exercise of independent judgment as a committee member and who possess an understanding of financial statements and generally accepted accounting principles.
Board Independence
As of the date of this Annual Report, we do not have any independent directors.
Audit Committee Financial Expert
Our board of directors has determined that we do not have an audit committee financial expert within the meaning of Item 407(d)(5) of Regulation S-K. In general, an &ldquo;audit committee financial expert&rdquo; 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 our 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 intend to establish a compensation committee of the Board of Directors. The compensation committee would review and approve our salary and benefits policies, including compensation of executive officers. The compensation committee would also administer any stock option plans and recommend and approve grants of stock options under such plans.
Item 11. Executive Compensation. Summary Compensation Table The following table provides certain summary information concerning compensation awarded to, earned by or paid to our Principal Executive Officer executive whose total annual salary and bonus exceeded $100,000 for fiscal year 2019. Certain tables and columns have been omitted as no information was required to be disclosed under those tables or columns.
SUMMARY COMPENSATION TABLE
Name and principal position Fiscal year Salary
		($) Stock awards
			($) Option Awards
			($) All other compensation
			($) Total
			($)
Evan Karras &ndash; CEO &amp; Director 300,000 -0- 300,000
Mr. Karras has served in these capacities since June 2015.
Of the amounts due and owing to Mr. Karras as executive compensation, no amounts have been paid in cash and the entire amounts have been accrued as due and payable.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The following table describes, as of December 31, 2019, the beneficial ownership of common shares by:
Name and Address of Beneficial Owner No. of Shares
Beneficially Owned Percentage Owned
CEDE &amp; CO
			570 Washington Blvd.
			Jersey City, New Jersey 7310 974,364,055 72.44%
ASHLEY LOUIS WALDRIFF
			425 University Avenue, Toronto, Ontario
			M5G 1T6 75,000,000 5.57%
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.
There were no transactions with any related persons (as that term is defined in Item 404 in Regulation S-K) during the last two fiscal years, or any currently proposed transaction, in which we were or were to be a participant and the amount involved which the amount exceeds the lesser of $120,000 or one percent of the average of our assets at year-end for the last two completed fiscal years, and in which any related person had a direct or indirect material interest.
LOANS PAYABLE Loans payable represents loans to meet the working capital requirements of the Company. These loans are interest free, unsecured and are repayable on demand. These loans payable as at December 31, 2019 and December 31, 2018 are $6,726,855 and $443,352, respectively.
DUE TO RELATED PARTIES At December 31, 2019 and December 31, 2018, balances due to the Chief Executive Officer of the Company were $161,074 and $46,222, respectively. These balances are interest free, unsecured and are repayable on demand. The balances due were incurred mainly in connection with the companies acquisitions of real estate and businesses.
Item 14. Principal Accountant Fees and Services. The following table shows the fees paid or accrued for accounting services and other services provided by our principal accountant.
&nbsp;
Audit fees $-0- $-0-
Audit related fees 30,000 21,000
Tax fees -0-
All other fees -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.
PART IV Item 15. Exhibits and Financial Statement Schedules. Attached Certification of Principal Executive Officer pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 302 of the Sarbanes-Oxley Act of 2002.
Attached Certification of Principal Executive Office and Principal Financial Officer pursuant to 18 U.S.C. &sect; as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002.
Item 16. Form 10&ndash;K Summary. None.
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EASTON PHARMACEUTICALS, INC. By: /s/ Evan Karras
Name: Evan Karras
Title: Chief Executive Officer and Director
Date: March 30, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Name &nbsp; Title &nbsp; Date
/s/ Evan Karras
		Evan Karras &nbsp; Director, Chief Executive Officer/Chief Financial Officer &nbsp; March 30, 2020
EXHIBIT 31.1 CERTIFICATION I, Evan Karras, certify that:
I have reviewed this Annual Report on Form 10-K of Easton Pharmaceuticals, Inc.;
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;
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;
As the registrant&rsquo;s sole certifying officer, 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: 		 Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my 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;
Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report my 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
Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and
As the registrant&rsquo;s sole certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent functions): 		 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&rsquo;s ability to record, process, summarize and report financial information; and
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.
Date: March 30, 2020 &nbsp; By: /s/ Evan Karras
			Evan Karras
			Chief Executive Officer and
			Chief Financial Officer
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 on Form 10-K of Easton Pharmaceuticals, Inc. (the &ldquo;Company&rdquo;) for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the &ldquo;Report&rdquo;), I, Evan Karras, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: March 30, 2020 &nbsp; By: /s/ Evan Karras
			Evan Karras
			Our Chief Executive Officer and Chief Financial Officer

---

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data.
Balance Sheets
Statement of Operations
Statement of Stockholders&rsquo; Equity (Deficit)
Statement of Cash Flows
Notes to Financial Statements
Balance Sheets
EASTON PHARMACEUTICALS INC.
			Financial Statements
			For the Year Ended December 31, 2019
			(Expressed in US dollars) 		
BALANCE SHEETS
UNAUDITED December 31,
December 31,
ASSETS
Current Assets
Cash and cash equivalents $47,967 $66,303
Inventory 1,789 &mdash;&mdash;
Total Current Assets $249,756 $66,303
Long-Term Investments
		1124123 Ontario Inc. (o/a Alliance Partners) &ndash; 50.00% ownership (Note 1) 1,653,962 1,148,326
Other Assets
Prepaid Expense 1,850 742,629
Deposit on Real Estate (Note 2) 93,985 &mdash;&mdash;
Equipment (Note 3) 6,980,065 &mdash;&mdash;
Intangible Assets
Gaming software (Note 4) 250,000 250,000
Licensing right (VagiSan (VS-Sense), AmnioSense from CommonSense, Biolyse Pharma) 1,402,588 1,402,588
Acquisition right (Note 5) 6,540,000 6,540,000
Total Assets 17,172,206 10,149,846
LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses $845,100 $568,486
Bank overdraft &mdash;&mdash;
Salaries and wages payable 609,500 223,512
Total Current Liabilities 1,454,648 791,998
Other Liabilities
Promissory note(s) 1,732,462 1,732,462
Other loans 6,726,855 443,352
Due to director(s) 161,074 46,222
Total Liabilities 10,075,039 3,014,034
Stockholders&rsquo; Equity (Deficit)
Preferred Stock
			&nbsp; &nbsp;Authorized: 20,000,000 preferred shares par value $0.0001 each
			&nbsp; &nbsp;Issued: nil preferred shares &mdash;&mdash; &mdash;&mdash;
Common Stock
			&nbsp; &nbsp;Authorized: 3,000,000,000 common shares par value $0.0001 each
			&nbsp; &nbsp;Issued: 1,344,932,973 common shares (1,344,932,973 as of December 31, 2019) 134,493 121,140
Additional paid-in capital 46,595,172 46,237,706
Accumulated deficit (39,632,498) (39,223,034)
Total Stockholders&rsquo; Equity (Deficit) 7,097,167 7,135,812
Total Liabilities and Stockholders&rsquo; Equity $17,172,206 $10,149,846
Statement of Operations
EASTON PHARMACEUTICALS INC.
STATEMENT OF OPERATIONS
			For the Year Ended December 31
UNAUDITED
Sales
Service revenue (note 6) $1,248,000 $208,113
Cost of service revenue 948,480 271,683
Georgina Property Revenue &mdash;&mdash; 170,476
Food processing revenue (note 7) 307,566 &mdash;&mdash;
Cost of food processing revenue 405,691 &mdash;&mdash;
Gross Profit 200,395 106,906
Operating Expenses
Management fees 300,000 161,512
Subscription fees 6.800 2,392
Transfer agent 5,759 5,168
Professional fees 172,463 20,858
Marketing expense 5,321 1,136
General and administrative expense 33,223 40,067
Total Operating Expenses 523,566 231,133
Gain (Loss) Before Other Income (Expenses) (323,171) (124,227)
Other Income (Expenses) (45,000) &mdash;&mdash;
Total Other Income (Expenses) &mdash;&mdash; (45,000)
Net Gain (Loss) Before Taxes &mdash;&mdash; &mdash;&mdash;
Income taxes &mdash;&mdash; &mdash;&mdash;
Net Gain (Loss) $(323,171) $(169,227)
Loss per Common Share - Basic and Diluted $0.00 $0.00
Weighted Average Number
of Common Shares Outstanding:
Basic and Diluted 1,344,932,073 1,211,395,236
Statement of Stockholders&rsquo; Equity (Deficit)
EASTON PHARMACEUTICALS INC.
		STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo; EQUITY (DEFICIT)
		for the period December 31, 2006 through December 31, 2019
UNAUDITED Number
			of Shares Common
			Stock Additional
			Paid-In
			Capital Accumulated
			Deficit Total
			Stockholders&rsquo;
			Equity (Deficit)
Balance &ndash; December 31, 2006 38,421 $4 $35,148,993 $(35,588,313) $(439,316)
Net loss December 31, 2007 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (150,106) (150,106)
Balance &ndash; December 31, 2007 38,421 $4 $35,148,993 $(35,738,419) $(589,422)
Common shares issued:
&nbsp; &nbsp;-to settle promissory note 14,258,220 1,426 12,832 &mdash;&mdash; 14,258
Capital contribution &ndash; accounts payable beyond statute of limitations &mdash;&mdash; &mdash;&mdash; 886,958 &mdash;&mdash; 886,958
Net loss December 31, 2008 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (621,643) (621,643)
Balance &ndash; December 31, 2008 14,296,641 $1,430 $36,048,783 $(36,360,062) $(309,849)
Common shares issued:
&nbsp; &nbsp;-to acquire Viorra assets 36,000,000 3,600 &mdash;&mdash; &mdash;&mdash; 3,600
&nbsp; &nbsp;-to acquire Ixora assets 8,000,000 545,345 &mdash;&mdash; 546,145
&nbsp; &nbsp;-to settle promissory notes 28,516,356 2,851 47,149 50,000
Net loss December 31, 2009 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (15,665) (15,665)
Balance &ndash; December 31, 2009 86,812,997 $8,681 $36,641,277 $(36,375,727) $274,231
Net loss December 31, 2010 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (56,774) (56,774)
Balance &ndash; December 31, 2010 86,812,997 $8,681 $36,641,277 $(36,432,501) $217,457
Issued for consulting fees 1,000,000 24,900 &mdash;&mdash; 25,000
Net loss December 31, 2011 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (112,630) (112,630)
Balance &ndash; December 31, 2011 87,812,997 $8,781 $36,666,177 $(36,545,131) $129,827
Issued for consulting fees 40,000,000 4,000 196,000 &mdash;&mdash; 200,000
Net loss December 31, 2012 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (183,281) (183,281)
Balance &ndash; December 31, 2012 127,812,997 $12,781 $36,862,177 $(36,728,412) $146,546
Issued for financing cash received 231,900,000 23,190 322,049 &mdash;&mdash; 345,239
Unrealized foreign exchange gain &mdash;&mdash; &mdash;&mdash; 8,949 &mdash;&mdash; 8,949
Net loss December 31, 2013 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (346,533) (346,533)
Balance &ndash; December 31, 2013 359,712,997 $35,971 $37,193,175 $(37,074,945) $154,201
Issued for financing cash received 140,287,003 14,029 682,971 &mdash;&mdash; 697,000
Issued for debt 35,000,000 3,500 244,900 &mdash;&mdash; 248,400
Issued for management fees payable 40,000,000 4,000 280,000 &mdash;&mdash; 284,000
Issued for account payable 5,300,000 34,270 &nbsp; 34,800
Issued for long term debt 31,428,571 3,143 106,857 &mdash;&mdash; 110,000
Error correction &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; 100,000 100,000
Net loss December 31, 2014 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (360,848) (360,848)
Balance &ndash; December 31, 2014 611,728,571 $61,173 $38,542,173 $(37,335,793) $1,267,553
Issued To Medicated Markets 200,000,000 20,000 &mdash;&mdash; &mdash;&mdash; 20,000
Issued for distribution agreement 5,000,000 &mdash;&mdash; &mdash;&mdash;
Issued for director fees 60,000,000 6,000 294,000 &mdash;&mdash; 300,000
Issued for consulting fees 6,000,000 39,400 &mdash;&mdash; 40,000
Issued as BMV prepaid expense 50,000,000 5,000 245,000 &mdash;&mdash; 250,000
Net loss December 31,2015 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (599,941) (599,941)
Balance &ndash; December 31, 2015 932,728,571 $93,273 $39,120,573 $(37,935,734) $1,278,112
Net loss December 31, 2016 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (872,822) (872,822)
Balance &ndash; December 31, 2016 932,728,571 $93,273 39,120,573 $(38,808,556) $405,290
Issued for iBliss per agreement 218,000,000 21,800 6,518,200 &mdash;&mdash; 6,540,000
Net loss December 31, 2017 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (245,279) (245,279)
Balance &ndash; December 31, 2017 1,150,728,571 $115,073 $45,638,773 $(39,053,835) $6,700,011
Issued for consulting fees 60,000,000 6,000 594,000 &mdash;&mdash; 600,000
Issued to reduce shareholder loan 666,665 &nbsp; 5,000
Net loss &ndash; December 31, 2018 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (169,199) (169,199)
Balance &ndash; December 31, 2018 1,211,395,236 $121,140 $46,237,706 $(39,223,034) $7,135,812
Issued for accounts payable 44,393,138 4,439 141,215 145,654
Net profit &ndash; March 31, 2019 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; 7,878 7,878
Balance &ndash; March 31, 2019 1,255,788,374 $125,579 $46,378,921 (39,215,156) 7,289,344
Issued for accounts payable 53,333,789 5,333 150,001 155,334
Net loss &ndash; June 30, 2019 &nbsp; &mdash;&mdash; &mdash;&mdash; (94,171) (94,171)
Balance &ndash; June 30, 2019 1,309,122,163 $130,912 $46,528,922 (39,309,327) 7,350,507
Issued for accounts payable 35,810,810 3,581 66,250 &nbsp; 69,831
Net loss &ndash; December 31, 2019 &mdash;&mdash; &mdash;&mdash; &mdash;&mdash; (323,171) (323,171)
Balance &ndash; December 31, 2019 1,344,932,973 $134,493 $46,595,172 (39,632,498) $7,097,167
Statement of Cash Flows
EASTON PHARMACEUTICALS INC.
				STATEMENTS OF CASH FLOWS
For the Year Ended December 31,
UNAUDITED
Cash Flows from Operating Activities
Net Income (Loss) $(323,171) $(169,199)
Increase in accounts payable and accrued expenses 382,700 3,000
Prepaid expense 3,000 (3,820)
Operating expenses paid by director(s) 13,680 &mdash;&mdash;
Non-cash settlement of debt 205,471 45,000
Net Cash Flows from Operating Activities 510,680 (6,856)
Cash Flows from Investing Activities
Deposit on real estate (18,797) &mdash;&mdash;
Net Cash Flows from Investing Activities (18,797) &mdash;&mdash;
Cash Flows from Financing Activities
Bank overdraft 1,121 &mdash;&mdash;
Net Cash Flows from Financing Activities 1,121 &mdash;&mdash;
Effect of foreign exchange on cash &mdash;&mdash; &mdash;&mdash;
Net Change in Cash and Cash Equivalents 493,004 &mdash;&mdash;
Cash and Cash Equivalents - Beginning of Year 192,452 &mdash;&mdash;
Cash and Cash Equivalents - End of Year $280,184 $156,820
NON-CASH INVESTING AND FINANCING ACTIVITIES
Stock issued to settle promissory notes payable $0 $0
SUPPLEMENTAL DISCLOSURE
Interest Paid $0 $0
Income Taxes Paid $0 $0
Common shares issued for assets $0 $0
Notes to Financial Statements
General
EASTON PHARMACEUTICALS, Inc. (the &ldquo;Company&rdquo;) was initially formed as L.A.M. Pharmaceutical, Corp. (the &ldquo;LLC&rdquo;) on July 24, 1998. From February 1, 1994 to July 24, 1998 the Company conducted its activities under the name RDN. In September 1998, the members of LLC, a Florida limited liability company, exchanged all of their interests in LLC for 6,000,000 shares of LAM Industries Inc&rsquo;s common stock. The stock exchange between the Company and the members of LLC is considered a recapitalization or reverse acquisition. Under reverse acquisition accounting, LLC was considered the acquirer for accounting and financial reporting purposes and acquired the assets and assumed the liabilities of the Company. In 2009 the Company reorganized in the state of Delaware and changed its name to LAM Industries, Inc. On March 17, 2010 the Company and its shareholders again approved and implemented a name change from LAM Industries Inc. to Easton Pharmaceuticals, Inc. and subsequently registered with FINRA for a new stock symbol. The Company&rsquo;s stock symbol was changed from LAIC to EAPH. In August of 2012, the company approved and changed corporate domicile from the State of Delaware to the State of Wyoming. The company is currently registered in the State of Wyoming.
Nature of Operations and Summary of Significant Accounting Policies
The Company serves the healthcare market internationally. The Company&rsquo;s corporate objective is to develop, license, produce and market prescription and over-the-counter products. In 2018, Easton&rsquo;s board of directors decided to diversify the Company&rsquo;s activities and enter new market segments, including real estate development, food and beverage and cannabis, through a combination of strategic acquisitions and joint ventures.
Revenue Recognition
Royalty Revenue Recognition - The Company recognizes royalty revenue based on royalty reports or related information received from the licensee and when collectability is reasonably assured.
Sales Revenue Recognition - The Company recognizes sales revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable when the product has been shipped to the customer, the sales price is fixed or determinable and collectability is reasonably assured. The Company reduces revenue for estimated customer returns.
Method of Accounting
The Company maintains its books and prepares its financial statements on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expense during the reporting period. Actual results can differ from those estimates.
Concentrations of Credit Risk
Financial instruments which potentially expose the Company to significant concentrations of credit risk consist principally of bank deposits. Cash is placed primarily in high quality short-term interest-bearing financial instruments.
Cash and Cash Equivalents
Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. The Company maintains cash and cash equivalents at financial institutions that periodically may exceed federally insured amounts.
Inventory
Inventory is comprised of finished goods and raw materials and is stated at the lower of cost or market. Cost is determined by the first-in, first-out method and market is based on the lower of replacement cost or net realizable value. If the cost of the inventories exceeds expected market value, provisions are recorded currently for the difference between the cost and the market value. These provisions are determined based on estimates. The valuation of inventories also requires the Company to estimate excess inventories and inventories that are not saleable. The determination of excess or non-saleable inventories requires the Company to estimate the future demand for the Company&rsquo;s product and consider the shelf life of the inventory. If actual demand is less than the Company&rsquo;s estimated demand, we could be required to record inventory reserves, which would have an adverse impact on the Company&rsquo;s results of operations. The Company anticipates that its inventory will be consumed through sales and marketing efforts prior to its expiry.
Property and equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. When an asset is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition is reflected in the statements of operations.
Rate of depreciation %
Production equipment 20-33
Furniture and equipment 7-15
Computers
Vehicle
Impairment of long-lived assets
The Company&rsquo;s long-lived assets are reviewed for impairment in accordance with ASC 360, &ldquo;Property, Plant and Equipment&rdquo;, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. To date the Company has not incurred any impairment losses.
Investment in other companies
Equity investments without readily determinable fair values are measured at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Periodic changes in the basis of these equity investments are reported in current earnings. In addition, at each reporting period a qualitative assessment is performed to identify impairment. When a qualitative assessment indicates an impairment exists, the Company estimates the fair value of the investment and recognizes in current earnings an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment.
Income taxes
The Company accounts for income taxes in accordance with ASC Topic 740, &ldquo;Income Taxes&rdquo;. Accordingly, deferred income taxes are determined utilizing the asset and liability method based on the estimated future tax effects of differences between the financial accounting and the tax bases of assets and liabilities under the applicable tax law. Deferred tax balances are computed using the enacted tax rates expected to be in effect when these differences reverse. Valuation allowance in respect of deferred tax assets are provided for, if necessary, to reduce deferred tax assets is amounts more likely than not to be realized.
The Company accounts for uncertain tax positions in accordance with ASC Topic 740-10, which prescribes detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise&rsquo;s financial statements. According to ASC Topic 740-10, tax positions must meet a more-likely-than-not recognition threshold. The Company&rsquo;s accounting policy is to classify interest and penalties relating to uncertain tax positions under income taxes, however the Company did not recognize such items in its fiscal 2019 and 2018 financial statements and did not recognize any liability with respect to an unrecognized tax position in its balance sheet.
Concentrations of credit risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash and trade receivables as well as certain other current assets that do not amount to a significant amount. Cash and cash equivalents, which are primarily held in Dollars are deposited with major banks. Management believes that such financial institutions are financially sound and, accordingly, minimal credit risk exists with respect to these financial instruments. The Company does not have any significant off-balance-sheet concentration of credit risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Most of the Company&rsquo;s sales are made in Canada and the United States to a small number of customers. Management periodically evaluates the collectability of the trade receivables to determine the amounts that are doubtful of collection and determine a proper allowance for doubtful accounts. Accordingly, management believes that the Company&rsquo;s trade receivables do not represent a substantial concentration of credit risk.
Salaries and wages payable
Salaries and Wages payable are $609,500, as of December 31, 2019. The balance owing is unsecured and non-interest bearing. They may be converted to shares of common stock.
Due to related parties and other loans payable
Amounts due to related parties and other loans payable are unsecured, bear no interest and are payable on demand. They may be converted into shares of common stock.
Due to Director(s)
The Director(s) paid operating expenses and deposits on real estate acquisitions on behalf of the Company in the amount of $161,074. This includes prior periods as well as for the Period Ended December 31, 2019.
NOTES TO FINANCIAL STATEMENTS
Note 1: 1124123 Ontario Inc. owns 145 acres in Georgina, Ontario located at 6017 Smith Blvd. Easton owns 50% of 1124123&rsquo;s interest in the property. Easton holds a security interest in the property through a 2nd mortgage charge.
Note 2: Easton has placed $100,000 CAD deposit in trust for the purchase of 111 Brockhouse Rd., Toronto, Ontario, which is where the Company currently operates its food processing company and maintains corporate offices. A further $25,000 CAD deposit was placed for the acquisition of 16399 Airport Rd., Toronto, Ontario for the purpose of creating a beverage bottling company for infused products. The Seller was in default of his mortgage obligations and lost the property. Easton issued a Notice of Termination of the Agreement of Purchase and Sale in July 2019, but the seller&rsquo;s legal counsel has yet to release the deposits.
Note 3: Easton acquired 100% of the assets of Supreme Sweets Inc. on April 24, 2019. The Fair Market Value of the equipment was appraised at $9,119,500 CAD.
Note 4: Easton entered into an agreement in October 2018 to acquire a fully operational video slot game, as well as bingo game content. The games are currently being developed and they will be placed in operating casinos leading to daily revenue for Easton. Easton has been unable to meet its payment obligation and as a result, has not been able to place the games. The agreement is now null and void.
Note 5: Easton had entered into an agreement for the acquisition of iBliss Inc. As a result of Easton&rsquo;s inability to fulfil its obligations as per the agreement and the declining stock price of Easton&rsquo;s common shares, the agreement was restructured.
Note 6: Easton has a service agreement to frame 150 homes in Whitby, Ontario and the Service revenue is a result of this agreement. The contract has now been completed and was not renewed.
Note 7: Easton acquired 100% of Supreme Sweets Inc. on April 24, 2019 and operates a food processing company.

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. Not applicable.
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 &ldquo;Exchange Act&rdquo;)) as of December 31, 2019. 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&rsquo;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.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in there being a more than remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.
Under the supervision and with the participation of our chief executive officer (our principal executive officer), management conducted an evaluation of the effectiveness of our internal control over financial reporting, as of December 19, 2019, based on the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under this framework, management concluded that our internal control over financial reporting was not effective as of the evaluation date due to the factors stated below:
Management assessed the effectiveness of our company&rsquo;s internal control over financial reporting as of the evaluation date and identified the following material weaknesses:
o Lack of proper segregation of duties due to limited personnel;
o Lack of a formal review process that includes multiple levels of review from adequate personnel with requisite expertise.
o Lack of written policies and procedures for accounting and financial reporting.
We do not have a functioning audit committee or sufficient outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.
Management is committed to improving its internal controls and will (1) continue to use third party specialists to address shortfalls in staffing and to assist the Company with accounting and finance responsibilities. In order to do so, the Company will have to raise capital to implement these controls and they will be dependent upon such capital being raised.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during the year ended December 31, 2019 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.
9B. Other Information. On October 30, 2019, the Company&rsquo;s Directors were charged by the Toronto Police as a result of false allegations made to the police by Mario Parravano and Barbara Parravano, the sellers of Supreme Sweets Inc. and 111 Brockhouse Road, Toronto. On or around August 2019, the Parravano&rsquo;s alleged that Easton had &ldquo;stolen&rdquo; their business and equipment and had &ldquo;locked them out&rdquo; of the premises. Easton&rsquo;s purchase of Supreme Sweets Inc. was handled by the Company&rsquo;s legal counsel and the transaction was completed between the parties respective legal counsel. The transaction was completed on April 24, 2019 in escrow.
PART III Item 10. Directors, Executive Officers and Corporate Governance. DIRECTORS AND EXECUTIVE OFFICERS Our directors, executive officers and key employees, and their ages as of the date of this report, are listed below. Our directors hold office for one-year terms or until their successors have been elected and qualified.
Name Position Age
Evan Karras President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer and a Director
Vince Demasi Director
The biographies of the directors and officers are set forth below as follows:
Evan Karras. Mr. Karras has been the Chief Executive Officer and a director of the Company since June 2015. Mr. Karras is a leading project developer with key strengths in the organization and implementation of small, medium and large-scale projects on an international level. He has extensive experience in investment banking, real estate, hospitality and telecommunications, among others.
Mr. Karras served as President and CEO of a specialty telecommunications company in the prepaid calling card industry. It was one of the largest prepaid long-distance calling card providers until Mr. Karras changed the direction of the company to more profitable and specialized products and services. He was instrumental in dramatically increasing the company&rsquo;s sales, raising awareness in the public markets and securing lucrative international telecom contracts for the company.
Mr. Karras participated in an international RFP for the privatization and award of casino licenses in Europe. He formed several consortiums with international hotel and gaming operators, including Sun International, Lady Luck Gaming Corporation, Playboy Enterprises, Hyatt Hotels and IMG. Mr. Karras further secured property for the participating consortiums and was instrumental in the overall development of several luxury hotel and casino resorts. Mr. Karras worked closely with DLJ and Bear Sterns in order to secure funding for those developments.
Mr. Karras was the first entrepreneur to cultivate, create and develop a multi-million-dollar network to provide multimedia services to subscribers in the Middle East and Gulf Countries. Mr. Karras negotiated agreements with the national telecommunications providers, as well as government authorities.
Mr. Karras has been instrumental in several product launches and has negotiated licensing agreements with major corporations, such as Bayer Consumer Health AG for Bayer.
Mr. Karras has been in Venture Capital and Investment Banking for over 20 years. He has syndicated and invested over $300 million in companies in various sectors, including healthcare, technology, manufacturing, financial, energy and waste management, among others.
Vince Demasi. Mr. Demasi has been a director of the Company since May 2018. Previously, for 25 years he was the president of Demasi General Contracting Inc., a successful company focusing on all aspects of residential and commercial construction in the GTA. Mr. Demasi has a great deal of experience in land development and real estate having previously directed a land development company and starting his career as a licensed real estate agent.
Mr. Demasi is also well known in his community for his philanthropic activities. He sits on a number of not-for-profit boards and runs a large Christmas food drive each year that provides food to over 500 families. In the past he was an active member of the local school board and is active in the provincial and federal political landscape.
Family Relationships
There are no family relationships among any of our executive officers or directors.
Section 16(a) Beneficial Ownership Reporting Compliance Not applicable.
CORPORATE GOVERNANCE MATTERS Audit Committee
As of the date of this Annual Report, we do not have an audit committee. We intend to establish an audit committee of the Board of Directors, which will consist of independent directors, of which at least one director will qualify as a qualified financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. The audit committee&rsquo;s duties would be to recommend to the Board of Directors the engagement of independent auditors to audit our financial statements and to review its accounting and auditing principles. The audit committee would review the scope, timing and fees for the annual audit and the results of audit examinations performed by the internal auditors and independent public accountants, including their recommendations to improve the system of accounting and internal controls. The audit committee would at all times be composed exclusively of directors who are, in the opinion of the Board of Directors, free from any relationship which would interfere with the exercise of independent judgment as a committee member and who possess an understanding of financial statements and generally accepted accounting principles.
Board Independence
As of the date of this Annual Report, we do not have any independent directors.
Audit Committee Financial Expert
Our board of directors has determined that we do not have an audit committee financial expert within the meaning of Item 407(d)(5) of Regulation S-K. In general, an &ldquo;audit committee financial expert&rdquo; 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 our 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 intend to establish a compensation committee of the Board of Directors. The compensation committee would review and approve our salary and benefits policies, including compensation of executive officers. The compensation committee would also administer any stock option plans and recommend and approve grants of stock options under such plans.
Item 11. Executive Compensation. Summary Compensation Table The following table provides certain summary information concerning compensation awarded to, earned by or paid to our Principal Executive Officer executive whose total annual salary and bonus exceeded $100,000 for fiscal year 2019. Certain tables and columns have been omitted as no information was required to be disclosed under those tables or columns.
SUMMARY COMPENSATION TABLE
Name and principal position Fiscal year Salary
		($) Stock awards
			($) Option Awards
			($) All other compensation
			($) Total
			($)
Evan Karras &ndash; CEO &amp; Director 300,000 -0- 300,000
Mr. Karras has served in these capacities since June 2015.
Of the amounts due and owing to Mr. Karras as executive compensation, no amounts have been paid in cash and the entire amounts have been accrued as due and payable.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The following table describes, as of December 31, 2019, the beneficial ownership of common shares by:
Name and Address of Beneficial Owner No. of Shares
Beneficially Owned Percentage Owned
CEDE &amp; CO
			570 Washington Blvd.
			Jersey City, New Jersey 7310 974,364,055 72.44%
ASHLEY LOUIS WALDRIFF
			425 University Avenue, Toronto, Ontario
			M5G 1T6 75,000,000 5.57%
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.
There were no transactions with any related persons (as that term is defined in Item 404 in Regulation S-K) during the last two fiscal years, or any currently proposed transaction, in which we were or were to be a participant and the amount involved which the amount exceeds the lesser of $120,000 or one percent of the average of our assets at year-end for the last two completed fiscal years, and in which any related person had a direct or indirect material interest.
LOANS PAYABLE Loans payable represents loans to meet the working capital requirements of the Company. These loans are interest free, unsecured and are repayable on demand. These loans payable as at December 31, 2019 and December 31, 2018 are $6,726,855 and $443,352, respectively.
DUE TO RELATED PARTIES At December 31, 2019 and December 31, 2018, balances due to the Chief Executive Officer of the Company were $161,074 and $46,222, respectively. These balances are interest free, unsecured and are repayable on demand. The balances due were incurred mainly in connection with the companies acquisitions of real estate and businesses.
Item 14. Principal Accountant Fees and Services. The following table shows the fees paid or accrued for accounting services and other services provided by our principal accountant.
&nbsp;
Audit fees $-0- $-0-
Audit related fees 30,000 21,000
Tax fees -0-
All other fees -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.
PART IV Item 15. Exhibits and Financial Statement Schedules. Attached Certification of Principal Executive Officer pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 302 of the Sarbanes-Oxley Act of 2002.
Attached Certification of Principal Executive Office and Principal Financial Officer pursuant to 18 U.S.C. &sect; as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002.
Item 16. Form 10&ndash;K Summary. None.
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EASTON PHARMACEUTICALS, INC. By: /s/ Evan Karras
Name: Evan Karras
Title: Chief Executive Officer and Director
Date: March 30, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Name &nbsp; Title &nbsp; Date
/s/ Evan Karras
		Evan Karras &nbsp; Director, Chief Executive Officer/Chief Financial Officer &nbsp; March 30, 2020
EXHIBIT 31.1 CERTIFICATION I, Evan Karras, certify that:
I have reviewed this Annual Report on Form 10-K of Easton Pharmaceuticals, Inc.;
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;
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;
As the registrant&rsquo;s sole certifying officer, 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: 		 Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my 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;
Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report my 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
Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and
As the registrant&rsquo;s sole certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent functions): 		 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&rsquo;s ability to record, process, summarize and report financial information; and
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.
Date: March 30, 2020 &nbsp; By: /s/ Evan Karras
			Evan Karras
			Chief Executive Officer and
			Chief Financial Officer
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 on Form 10-K of Easton Pharmaceuticals, Inc. (the &ldquo;Company&rdquo;) for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the &ldquo;Report&rdquo;), I, Evan Karras, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: March 30, 2020 &nbsp; By: /s/ Evan Karras
			Evan Karras
			Our Chief Executive Officer and Chief Financial Officer

---

ITEM 9A. CONTROLS AND PROCEDURES

---

ITEM 9B. OTHER INFORMATION

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance. DIRECTORS AND EXECUTIVE OFFICERS Our directors, executive officers and key employees, and their ages as of the date of this report, are listed below. Our directors hold office for one-year terms or until their successors have been elected and qualified.
Name Position Age
Evan Karras President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer and a Director
Vince Demasi Director
The biographies of the directors and officers are set forth below as follows:
Evan Karras. Mr. Karras has been the Chief Executive Officer and a director of the Company since June 2015. Mr. Karras is a leading project developer with key strengths in the organization and implementation of small, medium and large-scale projects on an international level. He has extensive experience in investment banking, real estate, hospitality and telecommunications, among others.
Mr. Karras served as President and CEO of a specialty telecommunications company in the prepaid calling card industry. It was one of the largest prepaid long-distance calling card providers until Mr. Karras changed the direction of the company to more profitable and specialized products and services. He was instrumental in dramatically increasing the company&rsquo;s sales, raising awareness in the public markets and securing lucrative international telecom contracts for the company.
Mr. Karras participated in an international RFP for the privatization and award of casino licenses in Europe. He formed several consortiums with international hotel and gaming operators, including Sun International, Lady Luck Gaming Corporation, Playboy Enterprises, Hyatt Hotels and IMG. Mr. Karras further secured property for the participating consortiums and was instrumental in the overall development of several luxury hotel and casino resorts. Mr. Karras worked closely with DLJ and Bear Sterns in order to secure funding for those developments.
Mr. Karras was the first entrepreneur to cultivate, create and develop a multi-million-dollar network to provide multimedia services to subscribers in the Middle East and Gulf Countries. Mr. Karras negotiated agreements with the national telecommunications providers, as well as government authorities.
Mr. Karras has been instrumental in several product launches and has negotiated licensing agreements with major corporations, such as Bayer Consumer Health AG for Bayer.
Mr. Karras has been in Venture Capital and Investment Banking for over 20 years. He has syndicated and invested over $300 million in companies in various sectors, including healthcare, technology, manufacturing, financial, energy and waste management, among others.
Vince Demasi. Mr. Demasi has been a director of the Company since May 2018. Previously, for 25 years he was the president of Demasi General Contracting Inc., a successful company focusing on all aspects of residential and commercial construction in the GTA. Mr. Demasi has a great deal of experience in land development and real estate having previously directed a land development company and starting his career as a licensed real estate agent.
Mr. Demasi is also well known in his community for his philanthropic activities. He sits on a number of not-for-profit boards and runs a large Christmas food drive each year that provides food to over 500 families. In the past he was an active member of the local school board and is active in the provincial and federal political landscape.
Family Relationships
There are no family relationships among any of our executive officers or directors.
Section 16(a) Beneficial Ownership Reporting Compliance Not applicable.
CORPORATE GOVERNANCE MATTERS Audit Committee
As of the date of this Annual Report, we do not have an audit committee. We intend to establish an audit committee of the Board of Directors, which will consist of independent directors, of which at least one director will qualify as a qualified financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. The audit committee&rsquo;s duties would be to recommend to the Board of Directors the engagement of independent auditors to audit our financial statements and to review its accounting and auditing principles. The audit committee would review the scope, timing and fees for the annual audit and the results of audit examinations performed by the internal auditors and independent public accountants, including their recommendations to improve the system of accounting and internal controls. The audit committee would at all times be composed exclusively of directors who are, in the opinion of the Board of Directors, free from any relationship which would interfere with the exercise of independent judgment as a committee member and who possess an understanding of financial statements and generally accepted accounting principles.
Board Independence
As of the date of this Annual Report, we do not have any independent directors.
Audit Committee Financial Expert
Our board of directors has determined that we do not have an audit committee financial expert within the meaning of Item 407(d)(5) of Regulation S-K. In general, an &ldquo;audit committee financial expert&rdquo; 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 our 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 intend to establish a compensation committee of the Board of Directors. The compensation committee would review and approve our salary and benefits policies, including compensation of executive officers. The compensation committee would also administer any stock option plans and recommend and approve grants of stock options under such plans.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation. Summary Compensation Table The following table provides certain summary information concerning compensation awarded to, earned by or paid to our Principal Executive Officer executive whose total annual salary and bonus exceeded $100,000 for fiscal year 2019. Certain tables and columns have been omitted as no information was required to be disclosed under those tables or columns.
SUMMARY COMPENSATION TABLE
Name and principal position Fiscal year Salary
		($) Stock awards
			($) Option Awards
			($) All other compensation
			($) Total
			($)
Evan Karras &ndash; CEO &amp; Director 300,000 -0- 300,000
Mr. Karras has served in these capacities since June 2015.
Of the amounts due and owing to Mr. Karras as executive compensation, no amounts have been paid in cash and the entire amounts have been accrued as due and payable.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The following table describes, as of December 31, 2019, the beneficial ownership of common shares by:
Name and Address of Beneficial Owner No. of Shares
Beneficially Owned Percentage Owned
CEDE &amp; CO
			570 Washington Blvd.
			Jersey City, New Jersey 7310 974,364,055 72.44%
ASHLEY LOUIS WALDRIFF
			425 University Avenue, Toronto, Ontario
			M5G 1T6 75,000,000 5.57%

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
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.
There were no transactions with any related persons (as that term is defined in Item 404 in Regulation S-K) during the last two fiscal years, or any currently proposed transaction, in which we were or were to be a participant and the amount involved which the amount exceeds the lesser of $120,000 or one percent of the average of our assets at year-end for the last two completed fiscal years, and in which any related person had a direct or indirect material interest.
LOANS PAYABLE Loans payable represents loans to meet the working capital requirements of the Company. These loans are interest free, unsecured and are repayable on demand. These loans payable as at December 31, 2019 and December 31, 2018 are $6,726,855 and $443,352, respectively.
DUE TO RELATED PARTIES At December 31, 2019 and December 31, 2018, balances due to the Chief Executive Officer of the Company were $161,074 and $46,222, respectively. These balances are interest free, unsecured and are repayable on demand. The balances due were incurred mainly in connection with the companies acquisitions of real estate and businesses.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accountant Fees and Services. The following table shows the fees paid or accrued for accounting services and other services provided by our principal accountant.
&nbsp;
Audit fees $-0- $-0-
Audit related fees 30,000 21,000
Tax fees -0-
All other fees -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.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits and Financial Statement Schedules. Attached Certification of Principal Executive Officer pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 302 of the Sarbanes-Oxley Act of 2002.
Attached Certification of Principal Executive Office and Principal Financial Officer pursuant to 18 U.S.C. &sect; as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002.