EDGAR 10-K Filing

Company CIK: 1379043
Filing Year: 2021
Filename: 1379043_10-K_2021_0001017386-21-000411.json

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ITEM 1. BUSINESS
Item 1. Business
Throughout this Form 10-K, Xtreme Fighting Championships Inc. are referred to as “Xtreme,” “XFC,” “the Company,” “we,” “our” or “us,”.
Xtreme Fighting Championships, Inc. is a sports entertainment and media company that is the second largest publicly traded Mixed Martial Arts (MMA) league, producing a wide range of live fighting events that are broadcast via traditional networks, pay-per-view and online. Mixed Martial Arts is a full-contact combat sport based on striking, grappling and ground fighting incorporating techniques from a broad range of martial arts and combat sports around the world. MMA is the world’s third most popular sport, behind soccer and basketball, and there are approximately 451 million people interested in MMA, according to Nielsen Sports DNA.
XFC was established with a vision of seeking out, signing and branding a new generation of Mixed Martial Arts fighters. The Company assembles the most exciting and well-rounded MMA fighters from around the world, to compete in all major weight classes for both men and women.
Our operations are organized around the following principal activities:
Live Events:
•We produce and promote live XFC fighting events featuring a variety of MMA fighters in all major weight classes for both men and women. XFC Fighters include both veterans and the next generation of rising superstars who compete in Main Event matches held in the iconic XFC Hexagon.
Talent Development:
•We actively seek out new talent to establish the next generation of MMA fighters to provide our audiences with the exciting combat action for which XFC events have become known. Our fighter-centric leadership team takes pride in discovering the next generation of rising superstars and providing them the resources and training required to maximize their success in the Hexagon. A key element to the success of our talent development efforts surrounds our national and regional “Tryouts” which are held to identify the next generation of talent. These events are designed to highlight the competitive elements of our events and allow fighters to rise through multiple levels of the tryout and tournament competitions. New fighters that are identified at our tryouts are offered the chance to sign an exclusive agreement to compete in XFC events for a specified period of time.
Media:
•We are focused on broadcasting and promoting our events on a variety of traditional and internet media. XFC events have been available though some of the largest media venues globally, including Terra TV, UOL and AXSTV/HDNet in the United States, Rede TV! in South Africa, and premium cable and satellite television network HBO. Many of the events we hold are later rebroadcast over internet media, primarily YouTube, where we highlight our Tryouts. In addition to broadcast platforms, we seek to maximize exposure of our events and fighters through internet and social media channels to promote engagement and interaction with our fighters.
Advertising and Sponsorships:
•We are in the early stages of developing our advertising and sponsorship programs that will extend from our live events to broadcast and social media content. We believe our audiences represent a prime marketing demographic of young, action oriented, sports enthusiasts the would be attractive to a wide range of consumer products. We intend to develop advertising and sponsorship packages to address the needs of such sponsors.
Merchandising:
•We plan to develop merchandise to promote our XFC brand among consumers and MMA sports enthusiasts. XFC-branded merchandise may include apparel and accessories sold under licensing arrangements or direct to consumers on our website. Merchandising opportunities may extend to toys, video games, and other products in the future.
Xtreme Fighting Championships, Inc. is a corporation organized under the laws of the State of Nevada and was incorporated on May 3, 2006. Our authorized capital consists of 500,000,000 common shares, with a par value of $0.001 per share and 10,000,000 authorized preferred shares. As of September 1, 2021, we had 120,595,979 shares of common stock issued and outstanding. Our headquarters and principal executive offices are located at 495 Grand Boulevard, Unit 206, Miramar Beach, FL 32550; our telephone number is (914) 290-4914, and our corporate website is www.xfcmma.net. We do not intend for information contained on our website to be part of this Form 10-K.
We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (SEC). The SEC also maintains an Internet site that contains annual, quarterly and current reports, proxy and information statements and other information that we (together with other issuers) file electronically. The SEC’s Internet site is www.sec.gov. We make available free of charge on or through our website our annual, quarterly, and current reports and amendments to those reports as soon as reasonably practicable after we electronically file such material with or furnish it to the SEC. Currently, the Company’s common stock is quoted on the OTC Markets electronic exchange under the symbol “DKMR.”
As we are a smaller reporting company, certain disclosures otherwise required to be made in a Form 10-K are not required to be made by us.
Previously, we were an exploration stage company engaged in the acquisition and exploration of mineral properties named Duke Mountain Resources, Inc. On December 31, 2013, we completed the acquisition of all of the issued and outstanding shares of Fostung Resources, which is the holder of certain leases and mining claims to a Fostung Tungsten property located in Foster Township, Sudbury, Ontario, Canada (the "Fostung Property") from RenovaCare, Inc. (f/k/a Janus Resources, Inc.) ("Janus"), a corporation organized under the laws of the State of Nevada.
During 2018, the Company began making investments of its capital, time and other resources in the market of mixed martial arts (“MMA”). The Company, as a result of its investments became a majority owner in a private company called, Xtreme Fighting Championships, Inc., a Florida corporation. The MMA and extreme sports market in general have become very profitable and so the company has begun operating in the MMA market. On July 13, 2020, the company changed its name to Xtreme Fighting Championships, Inc., pursuant to the laws of the Company’s state of incorporation and the rules and requirements of FINRA.
On January 25, 2020, Duke Mountain Resources, Inc. and Atlas Capital Partners, Inc. entered into a Share Purchase and Assignment of Debt Agreement. However, it was later discovered that Atlas Capital Partner, Inc. did not own the intellectual property agreed to by the parties and the debt in the agreement was later forgiven.
Industry and Market
The industry and market under which XFC exists is the sports market and martial arts fighting. We work with broadcast partners, such as NBC, FOX Sport and Telemundo, to broadcast fights to has many countries as possible.
Competition
Of our competitors, Ultimate Fighting Champions (“UFC”) is the largest. They are a multi-billion-dollar corporation whose fights are also broadcast on television. UFC is far larger than we are and they are currently better capitalized. We expect to continue to grow our business, but we are currently among the smaller MMA Fighting Leagues.
Intellectual Property
Our success and ability to compete depends in part on our ability to maintain our trade secrets. All of our employees and consultants are subject to non-disclosure agreements and other contractual provisions to establish and maintain our proprietary rights.
Research and Development
We are not in an industry or market where research and development is required to remain competitive. Our main product involves our ability to showcase the talents that our mixed martial arts fighters are able to display during their fights which we are able to display and broadcast to the public through our broadcast partners such as NBC, FOX Sports and Telemundo.
Regulatory Matters
Government contract laws and regulations affect how we will do business with our customers, and in some instances, will impose added costs on our business. A violation of specific laws and regulations could result in the imposition of fines and penalties, the termination of any then existing contracts or the inability to bid on future contracts.
Employees
We currently have one full time and 6 part time employees who work for XFC as independent contractors. The Company considers its relationships with its employees to be satisfactory and is not a party to any collective bargaining agreement.

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors
We are a smaller reporting company and therefore not required to provide this information in our Form 10-K.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments
Not applicable.

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ITEM 2. PROPERTIES
Item 2. Description of Property.
We do not own or lease any property.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings.
On June 24, 2021 the Company was sued by Harbor Gates Capital, LLC (“Harbor Gates”) in the United States District Court for the Southern District of Florida, Civil Action No. 1:21cv22322 for default on a note. Harbor Gates alleges that on or about September 14, 2020 the Company issued to them a convertible note for $210,000 convertible into the Company’s common stock. The note was due within six months from the funding, and they alleged that the Company was in default. The Company is defending this action.
As of the date of this Annual Report, management is not aware of any other legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Annual Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

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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’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information
Our common stock trades on the over the counter under the symbol “DKMR”.
The following table sets forth the high and low closing bid prices for our common stock for the fiscal quarter indicated as reported on OTC Markets. The quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. Our common stock is very thinly traded and, thus, pricing of our common stock on OTC Markets does not necessarily represent its fair market value. The last reported sales price of our common stock on the OTC Markets on September 20, 2021 was $0.05 per share.
High
Low
Year ended December 31, 2020
Quarter ended March 31, 2020
$
0.97
$
0.14
Quarter ended June 30, 2020
$
2.95
$
0.60
Quarter ended September 30, 2020
$
1.05
$
0.25
Quarter ended December 31, 2020
$
0.95
$
0.36
Year ended December 31, 2019
Quarter ended March 31, 2019
$
0.35
$
0.06
Quarter ended June 30, 2019
$
0.09
$
0.06
Quarter ended September 30, 2019
$
0.90
$
0.06
Quarter ended December 31, 2019
$
0.17
$
0.14
Equity Compensation Plan Information
As of December 31, 2020, we had no issued and outstanding options to purchase shares of common stock.
The following table provides information about our equity compensation plans as of December 31, 2020:
Plan category
Number of securities to be issued upon exercise of outstanding options, warrants and rights
Weighted-
average
exercise price
of outstanding options,
warrants and rights
Number of securities remaining available for future issuance under equity compensation plans
Equity compensation plans - approved by security holders
-
$
-
-
Equity compensation plans not issued under an equity compensation plan
-
$
-
-
Total
-
-
-
Holders
As of September 20, 2021, we had 120,595,979 shares of our common stock, par value $0.001, issued and outstanding held by approximately 264 stockholders of record.
As of September 20, 2021, we had 2 shares of series AA preferred shares, par value $0.001, issued and outstanding held by approximately one stockholders of record.
Dividend Policy
We have never declared or paid a cash dividend. At this time, we do not anticipate paying dividends in the future. We are under no legal or contractual obligation to declare or to pay dividends, and the timing and amount of any future cash dividends and distributions is at the discretion of our Board of Directors and will depend, among other things, on our future after-tax earnings, operations, capital requirements, borrowing capacity, financial condition and general business conditions. We plan to retain any earnings for use in the operation of our business and to fund future growth. You should not purchase our Shares on the expectation of future dividends.
Issuer Purchases of Equity Securities
During the fourth quarter of fiscal year ended December 31, 2020, there were no repurchases made by us or on our behalf, or by any “affiliated purchaser,” of shares of our common stock with the exception of 1,143,000 shares sold to Granite Globe Value Investments in November 2020,

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. Selected Financial Data.
We qualify as a smaller reporting company, as defined by Item 10(f)(1) of Regulation S-K and are not required to provide the information required by this Item.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Notice Regarding Forward Looking Statements
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including those relating to our liquidity, our belief that we will not have sufficient cash and borrowing capacity to meet our working capital needs for the next 12 months without further financing, our expectations regarding acquisitions and new lines of business, gross profit, gross margins and capital expenditures. Additionally, words such as “expects,” “anticipates,” “intends,” “believes,” “will” and similar words are used to identify forward-looking statements.
Some or all of the results anticipated by these forward-looking statements may not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Risk Factors which may appear in our filings and reports made with the Securities and Exchange Commission (the “SEC”), our lack of working capital, the value of our securities, the impact of competition, the continuation or worsening of current economic conditions, technology and technological changes, a potential decrease in consumer spending and the condition of the domestic and global credit and capital markets. Additionally, these forward-looking statements are presented as of the date this Form 10-K is filed with the SEC. We do not intend to update any of these forward-looking statements.
This discussion should be read in conjunction with the other sections of this Report, including “Description of Business” and the Financial Statements attached hereto pursuant and the related exhibits. The various sections of this discussion contain a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risk factors described throughout this Report.
The following discussion provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto contained elsewhere in this annual report. The following discussion and analysis contain forward-looking statements, which involve risks and uncertainties. Our actual results may differ significantly from the results, expectations and plans discussed in these forward-looking statements.
Overview
The purpose of the Company is to serve as a professional mixed martial arts fighting league within the U.S. The Company has a December 31 year end. As of December 31, 2020, the issued and outstanding shares of common stock totaled 99,815,716 and the issued and outstanding shares of preferred totaled 2.
Recent Events
None
Going Concern
The report of our independent registered public accounting firms that accompanies our audited consolidated financial statements for the year ended December 31, 2020, contain a going concern qualification in which such firm expressed substantial doubt about our ability to continue as a going concern. We had net cash used in operations of $714,770 during the year ended December 31, 2020. At December 31, 2020, we had working capital deficit of $697,356. Additionally, at December 31, 2020, we had an accumulated deficit of $35,246,505 These matters and our expected needs for capital investments required to support operational growth raise substantial doubt about our ability to continue as a going concern. Without additional capital, we will be unable to achieve our business objectives, and may be forced to curtail our operations, reduce headcount, and/or temporarily cease our operations until requisite capital is secured. Our consolidated financial statements do not include any adjustments to reflect the possible effects on recoverability and classification of assets or the amounts and classification of liabilities that may result from our inability to continue as a going concern.
Critical Accounting Policies and Estimates
Our consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by management’s applications of accounting policies. Critical accounting policies for our company include accounting for stock-based compensation.
Stock Based Compensation
Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and non-employee services received in exchange for an award of equity instruments over the period the employees, consultants and third parties are required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employees, consultants and third parties’ services received in exchange for an award based on the grant-date fair value of the award.
Use of Estimates
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, valuation of intangible assets; estimated useful life assigned to finite-lived assets and impairment of long-lived assets.
Results of Operations
Net Revenue. For the years ended December 31, 2020, and 2019, revenues generated were approximately $371,298 and $0, an increase of $371,298 or 100%. Revenues were derived primarily from sponsorship advertising during the fights.
Operating Expenses. Total operating expenses for the year ended December 31, 2020, were $14,442,913, a decrease of $6,155,957, or 30%, from total operating expenses for the year ended December 31, 2019, of $20,598,870.
Selling, General Administration expenses. Selling, general and administration expenses for the year ended December 31, 2020, were $13,282,936, a decrease of $7,315,934, or 36%, from selling, general and administration expenses for the year ended December 31, 2019, of $20,598,870. The Company commenced operations operating as sports entertainment media company in 2020, there were no operational expenses for the year ended December 31, 2019, other than certain restructuring costs. Stock-based compensation expenses for the year ended December 31, 2020, were $11,995,071, a decrease of $8,554,929, or 41.6%, from stock-based compensation expenses for the year ended December 31, 2019, of $20,550,000.
Depreciation and amortization. Depreciation and amortization expenses were $1,159,977 for the year ended December 31, 2020, as compared to $0 for the year ended December 31, 2019.
Interest Expense. Interest expenses were $44,011 and $4,513 during the years ended December 31, 2020, and 2019 respectively, representing an increase of $39,498 or 875.2%. The increase is primarily attributable to the addition of debt of $710,000, in 2020.
We expect our expenses in each of these areas to continue to increase during fiscal 2021 and beyond as we expand our operations and begin generating additional revenues under our current business. However, we are unable at this time to estimate the amount of the expected increases.
Net Loss. We recorded net loss after income tax of $14,115,626 for the year ended December 31, 2020, as compared to a net loss of $20,453,186 for the year ended December 31, 2019. The decrease is a result of the factors as described above.
Liquidity and Capital Resources
Since inception we have incurred and continue to incur significant losses from operations. Historically, we have financed our operations through various financings. If we continue to incur negative cash flow from sources of operating activities for longer than expected our ability to continue as a going concern could be in substantial doubt and we will require additional funds through debt facilities, and/or public or private equity or debt financings to continue operations. The Company is working to secure financing to continue to support the Company’s businesses and meet all of its financial obligations. The Company can provide no assurance as to the successful conclusion of the financing. Furthermore, the Company is aggressively looking to reduce costs of its operations as well as eliminating certain corporate overhead expenses to maximize income. We cannot provide any assurance that we will be able to obtain the capital we require on a timely basis or on terms acceptable to us. Without additional capital, we will be unable to achieve our business objectives, and may be forced to curtail our operations, reduce headcount, and/or temporarily cease our operations until requisite capital is secured.
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. At December 31, 2020, we had a cash balance of $13,049 and working capital is a deficit of $697,356.
Our current assets at December 31, 2020 were $78,049 from $0, for December 31, 2019 or an increase of 100%. The increase included cash of $13,049 and due from related party of $65,000.
Our current liabilities at December 31, 2020 increased to $775,405 from $37,096 or an increase of $738,309 or 1990%, from December 31, 2019. The increase is comprised of increases in; accounts payable and accrued expenses of $17,104, due to related party of $200, convertible debt of $579,118, unearned revenues of $123,900, and stock subscription payable of $17,987.
Operating Activities
Net cash flows used in operating activities for the year ended December 31, 2020, amounted to $714,770 and were attributable to; our net loss of $14,115,626, offset by; depreciation and amortization of $1,159,977, stock-based compensation of $11,995,071. Changes in operating assets and liabilities were reflected by increases in accounts payable and other current liabilities of 35,290 and unearned revenues of $123,900.
Net cash flows used in operating activities for the year ended December 31, 2019, amounted to $15,620 and were attributable to; our net loss of $20,453,195, offset by; stock-based compensation of $20,550,000, gain on debt forgiveness of ($150,197). Changes in operating assets and liabilities were reflected by increases in accounts payable and other current liabilities of 37,772.
Investing Activities
Net cash flows used in investing activities were $78,999 and $0 for the years ended December 31, 2020, and 2019, respectively. For the year ended December 31, 2020, we purchased property and equipment of 13,999 and gave advances to a related party of $65,000. For the year ended December 31, 2019, purchased of property and equipment of $0.
Financing Activities
Net cash flows provided by financing activities were $806,818 and $15,620 for the years ended December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, we had proceeds from the issuance of stock of $156,818 and notes payable of $650,000. For the year ended December 31, 2019, we had proceeds from related party of $15,620.
Off-balance Sheet Arrangements
We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as stockholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
We qualify as a smaller reporting company, as defined in Item 10(f)(1) of Regulation S-K and are not required to provide the information required by this Item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data.
See pages through.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.
On March 15, 2021, the Company’s Board of Directors approved the dismissal of Boyle CPA, LLC (“Boyle”) as the Company's independent registered public accounting firm.
During the fiscal years ended December 31, 2020 and December 31, 2019 there have been no “disagreements” (as defined in Item 304(a)(1)(iv) of Regulation S-K and related instructions) with Boyle on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements if not resolved to the satisfaction of Boyle would have caused Boyle to make reference thereto in its reports on the consolidated financial statements for such years. During the fiscal years ended December 31, 2020, and December 31, 2019 there have been no “reportable events” (as defined in Item 304(a)(1)(v) of Regulation S-K).
The Company provided Boyle with a copy of the disclosure it is making herein in response to Item 304(a) of Regulation S-K, and requested that CPA furnish the Company with a copy of its letter addressed to the Securities and Exchange Commission (the “SEC”), pursuant to Item 304(a)(3) of Regulation S-K, stating whether or not Boyle agrees with the statements related to them made by the Company in this report. A copy of Boyle's letter to the SEC dated March 15, 2021, is attached as Exhibit 16.1 to this report.
On March 15, 2021, the company’s Board of Directors approved the appointment of MaloneBailey, LLP ("MaloneBailey") as the Company's new independent registered public accounting firm, effective immediately, to perform independent audit services for the fiscal year ended December 31, 2020. During the fiscal years ended December 31, 2019 and December 31, 2018, neither the Company, nor anyone on its behalf, consulted MaloneBailey regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered with respect to the consolidated financial statements of the Company, and no written report or oral advice was provided to the Company by MaloneBailey that was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue; or (ii) any matter that was the subject of a "disagreement" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) or a “reportable event” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K).

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures.
Management’s Conclusions Regarding Effectiveness of Disclosure Controls and Procedures
We have carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer/Principal Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of December 31, 2016. 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.
Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.
Our management does not expect that our disclosure controls and procedures will prevent all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
The Company has been reviewing and designing remedial measures to address these matters, including, adding additional staff, the Company expects to implement the remediation efforts by the end of the 2021 fiscal year.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our management is also required to assess and report on the effectiveness of our internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002. Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2020. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). During our assessment of the effectiveness of internal control over financial reporting as of December 31, 2020, management identified material weaknesses related to (i) lack of an internal audit function, (ii) a lack of segregation of duties within accounting functions, (iii) lack of procedures over the Company’s business processes and (iv) lack of formal review process that includes multiple levels of review over financial reporting.
In conclusion our internal controls over financial reporting were not effective as of December 31, 2020.
Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, we will implement procedures to assure that the initiation of transactions, the custody of assets and the recording of transactions will be performed by separate individuals.
We believe that the foregoing steps will reduce the material weaknesses identified above, and we will continue to monitor the effectiveness of these steps and make any changes that our management deems appropriate, until such time that we have the capital resources to address formally. Due to the nature of these material weaknesses in our internal control over financial reporting, there is more than a remote likelihood that misstatements which could be material to our annual or interim financial statements could occur that would not be prevented or detected.
A material weakness (within the meaning of PCAOB Auditing Standard No. 5) is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the company’s financial reporting.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.
This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules the SEC that permit us to provide only management’s report in this annual report.
Changes in Internal Controls
There have been no changes in our internal control over financial reporting during the fourth quarter ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information.
None.
PART III.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance.
The following table presents information with respect to our executive officers, directors and significant employees as of the date of this report:
Name and Address
Age
Date First Elected or Appointed
Position(s)
Steve A. Smith Jr.
January 23, 2020
Chief Executive Officer, Chief Financial Officer and Chairman
Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. The Board of Directors appoints officers who serve their terms of office at the discretion of the Board of Directors.
Background of executive officers and directors
The following is a brief account of the education and business experience during at least the past five years of our officers and directors, indicating each person’s principal occupation during that period, and the name and principal business of the organization in which such occupation and employment were carried out.
Steve A. Smith Jr., Chief Executive Officer, Chief Financial Officer and Chairman, 46, Chief Executive, Chief Financial Officer and the Director of the Company has 23 years of executive marketing experience and has held significant marketing positions while working with Fortune 100 companies. Mr. Smith has accepted his appointment as President and Director to the Company. Steve has worked for more than 17 years in the media business in senior management. Steve has spent more than a decade in key VP/Director roles at high profile companies including Discovery Communications & World Wrestling Entertainment. His account experience extends across more than 500 clients, which includes deep relationships within all of the movie & entertainment industries. Having worked with high profile media assets within Television, Print, Digital, Outdoor & Events, Steve has unparalleled knowledge of creative marketing tactics. Steve brings his leadership experience with leading dynamic teams to profitability.
Family Relationships
There are no family relationships between any of our directors or executive officers.
Involvement in Certain Legal Proceedings
None of our directors, executive officers or control persons has been involved in any of the legal proceedings required to be disclosed in Item 401 of Regulation S-K, during the past five years.
Director Independence
Our board of directors currently consists of one member. We are not currently subject to any law, rule or regulation requiring that all or any portion of our board of directors include "independent" directors.
Committees of the Board of Directors
Audit Committee. We did not during 2020, and do not currently, have an audit committee. If and when we satisfy the other initial listing standards for listing our common stock on NASDAQ or another national exchange, we intend to establish a compensation committee of the Board of Directors.
Compensation Committee. We did not during 2020, and do not currently, have a compensation committee. If and when we satisfy the other initial listing standards for listing our common stock on NASDAQ or another national exchange, we intend to establish a compensation committee of the Board of Directors.
Nominating Committee. We have not established a compensation committee. Our board of directors, sitting as a board, performs the role of a compensation committee. We are not currently subject to any law, rule or regulation requiring that we establish a nominating committee.
Board Leadership Structure and Role in Risk Oversight
Steve A. Smith Jr. acts as our Chairman, Chief Executive Officer and Chief Financial Officer. We have no policy requiring either that the positions of the Chairman of the Board, Chief Executive Officer and the Chief Financial Officer be separate or that they be occupied by the same individual. The Board of Directors believes that this issue is properly addressed as part of the succession planning process and that a determination on this subject should be made when it elects a new chief financial officer or at such other times as when consideration of the matter is warranted by circumstances.
Our Board of Directors is primarily responsible for overseeing our risk management processes on behalf of the Company. The Board of Directors receives and reviews periodic reports from management, auditors, legal counsel, and others, as considered appropriate regarding our Company’s assessment of risks. The Board of Directors focuses on the most significant risks facing our Company and our Company’s general risk management strategy, and also ensures that risks undertaken by our Company are consistent with the Board’s appetite for risk. While the Board oversees our Company’s risk management, management is responsible for day-to-day risk management processes. We believe this division of responsibilities is the most effective approach for addressing the risks facing our Company and that our Board leadership structure supports this approach.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation
2020 Summary Compensation Table
The table below summarizes all compensation awarded to, earned by, or paid to our named executive officers (as defined in Item 402(m)(2) of Regulation S-K) for the fiscal years ended December 31, 2020 and December 31, 3019.
Name and Principal Position
Fiscal
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
Option
Awards
($)
Nonequity
Incentive
Plan
Compen-
sation ($)
Non-
Qualified
Deferred
Compen-
sation
Earnings
($)
All
Other
Compen-
Sation ($)
Total
($)
Steve A. Smith
$
25,122
$
$
$
$
$
$
174,300
$
199,422
(Chief Executive & Chief Financial Officer and Director
$
$
$
$
$
$
$
$
Narrative Disclosure to the Summary Compensation Table
The Company has made payments to Mr. Smith for $25,122 and has paid Emerald Coast Investments Inc., $174,300, of which Mr. Smith is principal.
Outstanding Equity Awards at 2020 Fiscal Year-End
There were no equity awards for each named executive officer as of December 31, 2020.
2020 Director Compensation
No director received compensation for services rendered in any capacity to us during the fiscal years ended December 31, 2020 and December 31, 2019.
DIRECTOR COMPENSATION
Name
Fees Earned or Paid in Cash ($)
Stock Awards ($)
Option Awards ($)
Non-Equity Incentive Plan Compensation ($)
Non-Qualified Deferred Compensation Earnings ($)
All Other Compensation ($)
Total ($)
Steve A. Smith Jr. (1)
$
-
$
-
-
-
-
$
(1)
Amounts are included in Summary Compensation Table.
Narrative Disclosure to the Director Compensation Table
Mr. Smith receive no compensation from the Company except as described above.
Employment Agreements with Current Management
Other than as described above, there are no additional agreements with current management, for the years ended December 31, 2020 and 2019, respectively.
Grants of Plan Based Awards and Outstanding Equity Awards at Fiscal Year-End
There were no grants of plan-based awards as of December 31, 2020.
Compensation Committee Interlocks and Insider Participation
None of our executive officers serves as a member of the Board of Directors or compensation committee of any other entity that has one or more of its executive officers serving as a member of our Board of Directors.

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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.
SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
The following tables sets forth, as of September 1, 2021, the number of and percent of the Company’s common stock beneficially owned by: (1) all directors, naming them; (2) our named executive officers; (3) our directors and executive officers as a group, without naming them; and (4) persons or groups known by us to own beneficially 5% or more of our voting securities.
A person is deemed to be the beneficial owner of securities that can be acquired by him within 60 days from September 1, 2021 upon the exercise of options, warrants or other convertible securities. Each beneficial owner’s percentage ownership is determined by assuming that convertible securities that are held by that beneficial owner, but not those held by any other person, and which are exercisable within 60 days of September 20, 2021 have been exercised and converted.
Amount and Nature of Beneficial Ownership
Common Stock (1)
Name and Address of Beneficial Owner (2)
Number of Shares
Percent
Directors and Executive Officers
Steve A. Smith Jr.
116,408,783
(3)
53.7
%
%
%
Directors and Executive Officers as a Group (1 person)
116,408,783
53.7
%
5% Stockholders:
Steve A. Smith Jr.
116,408,783
53.70
%
(1) In determining the percent of common stock beneficially owned by a person or entity, (a) the numerator is the number of shares beneficially owned by such person or entity, including shares which may be acquired by that person within 60 days of September 20, 2021, upon the conversion of Preferred Series AA, and (b) the denominator is the sum of (i) the total shares of common stock outstanding on September 20, 2021 (120,595,979 shares), and (ii) the total number of shares that the beneficial owner may acquire within 60 days of September 20, 2021 upon exercise of Preferred Series AA, (96,408,783 shares).
(2) Unless otherwise indicated in the footnotes, the address of the beneficial owners is c/o Xtreme Fighting Championship, Inc., 495 Grand Boulevard, Unit 206, Miramar Beach, Florida 32550.
(3) Represents 20,000,000 shares of common stock and 96,408,783 shares convertible into common, within 60 days upon the conversion of 2 shares of convertible preferred Series AA.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence
SEC rules require us to disclose any transaction or currently proposed transaction in which the Company is a participant and in which any related person has or will have a direct or indirect material interest involving the lesser of $120,000 or one percent (1%) of the average of the Company’s total assets as of the end of last two completed fiscal years. A related person is any executive officer, director, nominee for director, or holder of 5% or more of the Company’s common stock, or an immediate family member of any of those persons.
On January 25, 2020, Duke Mountain Resources, Inc. and Atlas Capital Partners, Inc. entered into a Share Purchase and Assignment of Debt Agreement. Pursuant to that Agreement, Atlas Capital Partners, with the agreement of its creditor Emerald Coast Investments, Inc., was sold to Duke Mountain Resources. In return for such sale, Duke Mountain agreed to pay off all of the debt Atlas Capital Partners owed to Emerald Coast Investments. Later, the company was discarded by XFC as it was found that it did not possess the intellectual property and requisite contracts to assist XFC in its business.
On November 20, 2020, the Company entered into a note receivable, with Emerald Coast Investments Inc., of which Mr. Steve Smith, the Company’ s Chief Executive officer, is principal. The Note is for a term of 5 years and is non-interest bearing. The balance of the receivable on December 31, 2020, was $65,000.
During the year ended December 31, 2020, Emerald Coast Investments, Inc., has been paid $173,400 in fees for services and were issued 27,000,000 shares of the Company.
The Company recorded amounts due to related party advances of $17,070, for accounts payable. For the year ended December 31, 2019, the amounts due to a related party were $16,870 for accounts payable.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accounting Fees and Services
During the fiscal year ended December 31, 2020, MaloneBailey, LLP was the Company’s independent registered public accounting firm, their audit fees were $30,000 and were accounted for in the 2021 fiscal year. For the fiscal year ended December 31, 2019, Boyle CPA, LLC was the Company’s independent registered public accounting firm their fees were $5,000.
The following table sets forth fees billed to us by our independent registered public accounting firm during the fiscal years ended December 31, 2020, and 2019.
Audit Fees (1)
$
5,000
$
5,000
Audit-related Fees
-
Tax Fees
$
-
All Other Fees
$
-
Total Fees
$
5,000
$
5,000
(1)
Audit fees consisted primarily of fees for the audit of our annual financial statements and reviews of the financial statements included in our quarterly reports and current reports.
(2)
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.
(3) Tax fees represent professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.
(4) All other fees represent fees billed for products and services provided by the principal accountant, other than the services reported for the other categories.
Audit Committee Pre-approval Policies and Procedures
We do not, and during 2020 did not, have an audit committee. However, the full board of directors currently performs the duties of an audit committee. The board of directors has certain policies and procedures in place requiring the pre-approval of audit and non-audit services to be performed by our independent registered public accounting firm. Such pre-approval can be given as part of the board’s approval of the scope of the engagement of the independent public registered accounting firm or on an individual basis. The approved non-audit services must be disclosed in our periodic reports filed with the SEC. All work performed by our independent registered public accounting firm for us in 2020 and 2019 was pre-approved by the board of directors.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement Schedules.
(a)
Documents filed as part of this report.
(1)
Financial Statements. See Index to Consolidated Financial Statements, which appears on page hereof. The financial statements listed in the accompanying Index to Consolidated Financial Statements are filed herewith in response to this Item.
(2)
Financial Statements Schedules. None.
(3)
Exhibits
Exhibit No.
Description
3.1
Articles of Incorporation of Duke Mountain Resources, Inc. (incorporated by reference to the Company's registration on Form SB-2 filed with the Securities and Exchange Commission on January 24, 2007)
3.2
Bylaws of Duke Mountain Resources, Inc. (incorporated by reference to the Company's registration on Form SB-2 filed with the Securities and Exchange Commission on January 24, 2007)
31.1*
Certification of the Principal Executive Officer Pursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification of the Principal Financial Officer Pursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*
Certification of the Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
Certification of the Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(1)
Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the Securities and Exchange Commission upon request; provided, however that the Company may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any schedule or exhibit so furnished.
* Filed herewith.