UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from __________ to ___________

Commission file number: 000-56453

LIMITLESS X HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Delaware	81-1034163
(State of Incorporation)	(IRS Employer ID Number)

9454 Wilshire Blvd., #300, Beverly Hills, CA 90212

(Address of Principal Executive Offices)

(855) 413-7030

(Registrant’s Telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 for Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of November 15, 2023, there were 3,976,998 shares of the registrant’s common stock, $0.0001 par value, issued and outstanding.

TABLE OF CONTENTS

		Page
	PART 1 – FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets	1
	Unaudited Condensed Consolidated Statements of Operations	2
	Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Deficit	3
	Unaudited Condensed Consolidated Statements of Cash Flows	5
	Notes to the Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	28
	Signatures	29

i

LIMITLESS X HOLDINGS INC.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

LIMITLESS X HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2023			December 31, 2022
	(unaudited)			(audited)
ASSETS
Current Assets:
Cash	$	85,529		$	5,843,323
Accounts receivables, net of allowance for doubtful accounts of $232,374 and $0, respectively		225,484			895,713
Holdback receivables, net of allowance for doubtful accounts of $0 and $1,300,855, respectively		2,350,060			1,043,991
Inventories		2,391,451			3,855,946
Due from related party		2,514			-
Total current assets		5,055,038			11,638,973
Non-Current Assets:
Operating lease right-of-use asset, net		-			91,032
Property and equipment, net		30,526			32,256
Other assets		57,182			78,965
Total non-current assets		87,708			202,253
Total assets	$	5,142,746		$	11,841,226
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable and accrued expenses	$	7,836,967		$	2,419,051
Current portion of operating lease liabilities		-			92,195
Royalty payable		1,512,552			1,114,403
Refunds payable		34,673			213,930
Chargebacks payable		381,640			118,288
Income tax payable		17,056			17,056
Note payable		35,000			35,000
Convertible notes payable		9,675,000			9,175,000
Notes payable to stockholder		5,950,845			4,462,028
Notes payable to related parties		80,000			1,247,011
Total current liabilities		25,523,733			18,893,962
Total liabilities		25,523,733			18,893,962
Commitments and contingencies
Stockholders’ deficit
Preferred Stock - $0.0001 par value; 30,000,000 authorized shares; 500,000 shares issued and outstanding at September 30, 2023 and December 31, 2022		50			50
Common Stock- $0.0001 par value; 300,000,000 authorized shares; 3,976,998 shares and 3,929,834 issued at September 30, 2023 and December 31, 2022, respectively		399			394
Additional paid-in-capital		3,107,177			2,966,162
Retained earnings		(23,488,613	)		(10,019,342	)
Total stockholders’ deficit		(20,380,987	)		(7,052,736	)
Total liabilities and stockholders’ deficit	$	5,142,746		$	11,841,226

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

LIMITLESS X HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the three months ended September 30,						For the nine months ended September 30,
	2023			2022			2023			2022
Revenue
Product sales	$	1,005,924		$	12,114,278		$	13,852,451		$	27,382,335
Service revenue		1,261,814			9,378,900			4,058,818			12,344,100
Rentals		-			2,500			15,000			7,500
Total revenue		2,267,738			21,495,678			17,926,269			39,733,935
Cost of sales
Cost of sales		644,365			3,037,997			3,717,216			5,837,994
Cost of sales - other		-			-			-			358
Total cost of sales		644,365			3,037,997			3,717,216			5,838,352
Gross profit		1,623,373			18,457,681			14,209,053			33,895,583
Operating expenses:
General and administrative		(1,129	)		660,068			1,051,630			1,089,109
Advertising and marketing		1,873,612			17,163,099			18,525,288			34,376,380
Stock compensation for services		-			-			141,020			1,117,782
Transaction fees		75,050			1,401,892			1,159,896			1,988,718
Merchant fees		41,370			917,427			1,098,648			1,656,920
Royalty fees		18,324			472,082			398,149			704,203
Professional fees		91,642			272,963			1,211,759			940,945
Payroll and payroll taxes		859,512			258,934			2,931,357			392,605
Rent		37,609			41,177			123,401			121,570
Bad debt expense		-			-			232,374			-
Consulting fees, related party		-			6,000			10,000			38,500
Total operating expenses		2,995,990			21,193,642			26,883,522			42,426,732
Loss from operations		(1,372,617	)		(2,735,961	)		(12,674,469	)		(8,531,149	)
Other income (expense)
Interest expense		(275,856	)		(68,286	)		(731,616	)		(81,394	)
Loss on debt settlement		-			-			(142,551	)		-
Other income		-			-			-			57,756
Other expense		(132,000	)		-			(162,000	)		-
Gain on disposal of assets		-			-			-			28,397
Total other income (expense), net		(407,856	)		(68,286	)		(1,036,167	)		4,759
Loss before income taxes		(1,780,473	)		(2,804,247	)		(13,710,636	)		(8,526,390	)
Income tax provision		(48	)		-			-			6,402
Gain on deconsolidation of subsidiary		-			-			241,365			-
Net loss	$	(1,780,425	)	$	(2,804,247	)	$	(13,469,271	)	$	(8,532,792	)
Net loss per common share - basic and diluted	$	(0.45	)	$	(0.74	)	$	(3.41	)	$	(4.28	)
Weighted average number of common shares		3,977,497			3,789,565			3,950,911			1,995,073

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

LIMITLESS X HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

	Preferred Stock				Common Stock				Additional Paid-In		Retained			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Earnings			Equity
Balance at December 31, 2022		500,000	$	50		3,929,834	$	394	$	2,966,162	$	(10,019,342	)	$	(7,052,736	)
Issuance of common stock for services		-		-		47,164		5		141,015		-			141,020
Net loss		-		-		-		-		-		(13,469,271	)		(13,469,271	)
Balance at September 30, 2023 (unaudited)		500,000	$	50		3,976,998	$	399	$	3,107,177	$	(23,488,613	)	$	(20,380,987	)

	Preferred Stock				Common Stock				Additional Paid-In		Retained			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Earnings			Equity
Balance at June 30, 2023 (unaudited)		500,000	$	50		3,976,998	$	399	$	3,107,177	$	(21,708,188	)	$	(18,600,562	)
Net loss		-		-		-		-		-		(1,780,425	)		(1,780,425	)
Balance at September 30, 2023 (unaudited)		500,000	$	50		3,976,998	$	399	$	3,107,177	$	(23,488,613	)	$	(20,380,987	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

LIMITLESS X HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

	Preferred Stock				Common Stock				Common Stock Issuable						Additional Paid-In		Retained			Total Stockholders’
	Shares		Amount		Shares		Amount		Shares			Amount			Capital		Earnings			Equity
Balance at December 31, 2021		500,000	$	50		3,496,150	$	350		397,000		$	40		$	1,848,384	$	4,664		$	1,853,488
Issuance of common stock		-		-		97,000		10		(97,000	)		(10	)		-		-			-
Issuance of common stock issuable		-		-		300,000		30		(300,000	)		(30	)		-		-			-
Issuance of common stock for services		-		-		36,684		4		-			-			1,117,778		-			1,117,782
Net loss		-		-		-		-		-			-			-		(8,532,792	)		(8,532,792	)
Balance at September 30, 2022		500,000	$	50		3,929,834	$	394		-		$	-		$	2,966,162	$	(8,528,128	)	$	(5,561,522	)

	Preferred Stock				Common Stock				Additional Paid-In		Retained			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Earnings			Equity
Balance at June 30, 2022		500,000	$	50		3,929,834	$	394	$	2,966,162	$	(5,723,881	)	$	(2,757,275	)
Net loss		-		-		-		-		-		(2,804,247	)		(2,804,247	)
Balance at September 30, 2022		500,000	$	50		3,929,834	$	394	$	2,966,162	$	(8,528,128	)	$	(5,561,522	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

LIMITLESS X HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the nine months ended September 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(13,469,271	)	$	(8,532,792	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		3,334			3,613
Common stock issued for professional fees		141,020			1,117,782
Loss on settlement of debt		142,551			-
Gain on deconsolidation of subsidiary		(241,365	)		-
Changes in assets and liabilities:
Accounts receivables, net		192,121			(258,820	)
Holdback receivables		(1,306,069	)		(2,180,270	)
Inventories		868,324			172,813
Due from related party		(2,514	)		-
Other assets		21,783			(75,811	)
Accounts payable and accrued expenses		5,463,942			1,967,850
Refunds payable		(179,257	)		165,550
Royalty payable		398,149			704,203
Chargebacks payable		263,352			153,969
Net cash used in operating activities		(7,703,900	)		(6,761,913	)
Cash flows from investing activities:
Purchases of equipment		(1,604	)		-
Proceeds from disposition of asset		-			28,397
Net cash provided by (used in) financing activities		(1,604	)		28,397
Cash flows from financing activities:
Proceeds from convertible debt		500,000			3,585,000
Proceeds from borrowings from stockholder		1,488,817			3,672,028
Proceeds from borrowings from related parties		-			317,610
Net cash provided by financing activities		1,988,817			7,574,638
Net increase (decrease) in cash		(5,716,687	)		841,122
Deconsolidation - Cash		(41,107	)		-
Cash – beginning of period		5,843,323			78,856
Cash – end of period	$	85,529		$	919,978
Supplemental disclosures of cash flow information
Cash paid during the periods for:
Interest	$	2,334		$	1,125
Income taxes	$	-		$	-
Non-cash investing and financing activities:
Due to Emblaze One, Inc. by Limitless X	$	1,167,011		$	-
Due from Vybe Labs, Inc. by Limitless X	$	(1,356,750	)	$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

LIMITLESS X HOLDINGS INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Organization and History

On May 11, 2022, Bio Lab Naturals, Inc., a Delaware corporation (“Bio Lab”), entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Limitless X, Inc., a Nevada corporation (“LimitlessX”), and its 11 shareholders (the “LimitlessX Acquisition”). The parties completed and closed the LimitlessX Acquisition on May 20, 2022 by issuing an aggregate of 3,233,334 shares of common stock of Bio Lab to the LimitlessX shareholders (the “Acquisition Closing”). According to the terms of the Share Exchange Agreement, Bio Lab then issued an additional 300,000 shares of common stock to the LimitlessX shareholders pro rata to their interests approximately six months from the Acquisition Closing as part of the LimitlessX Acquisition. Concurrently with the LimitlessX Acquisition, Jaspreet Mathur, the founder and principal shareholder of LimitlessX, also purchased from Helion Holdings LLC, 500,000 shares of Bio Lab’s Class A Preferred Convertible Stock, which at all times have a number of votes equal to 60% of all of the issued and outstanding shares of common stock of Bio Lab.

On June 10, 2022, Bio Lab changed its name to Limitless X Holdings Inc. (“Limitless”).

The LimitlessX Acquisition was accounted for as a “reverse merger” following the completion of the transaction. For accounting purposes, LimitlessX was deemed to be the accounting acquirer in the transaction and, consequently, the transaction was treated as a recapitalization of Bio Lab. Accordingly, LimitlessX’s assets, liabilities, and results of operations became the historical financial statements of the registrant. No step-up in basis or intangible assets or goodwill was recorded in this transaction.

The Company (as defined below) is a lifestyle brand, focused in the health and wellness industry. Initially, the Company focused on nutritional supplements, wellness studies, and interactive training videos and has since focused its business on performance marketing, sales of digital services, and sales of products. The Company’s mission is to provide businesses a turnkey solution to sell their products. Company teams include sales, marketing, user interface design (UI), user experience design (UX), fulfillment, customer support, labeling, product manufacturing, consulting, retailing, and payment processing, among others.

The Company currently offers products online only. The Company has manufacturing and distribution licensing agreements to market, manufacture, sell, and distribute branded products on behalf of its clients. The Company orders products from third party partner manufacturers that make the products according to the Company’s custom formulations, and brands them using the Company’s licensed trademarks. Products are then marketed and sold direct to consumers online. Orders are fulfilled and shipped directly from the Company’s licensors. The Company plans to offer global marketing services across all areas of the sales process, including market research, brand and product development, and digital advertising operating as an integrated marketing agency.

The Company operates in the following product and service sectors: (i) health products and (ii) digital marketing services. The health products sector included the sales of health products in two primary vertical markets: (1) health & wellness; and (2) beauty & skincare. The digital marketing service sector includes digital marketing; digital and print design; social media marketing; and direct-to-consumer marketing.

Note 2 – Summary of Significant Accounting Policies

Principles of Consolidation and Reporting

The accompanying consolidated financial statements include the accounts of Limitless X Holdings Inc. (a holding company) and its wholly owned operating subsidiaries: Limitless X, Inc. and Prime Time Live, Inc. (collectively, the “Company”). All intercompany balances have been eliminated during consolidation.

6

Use of Estimates in the Preparation of Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. Cash and cash equivalents include demand deposits carried at cost which approximates fair value. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation (“FDIC”).

Concentration of Credit Risk

The Company offers its products and services to a large number of customers. The risk of non-payment by these customers is considered minimal and the Company does not generally obtain collateral for sales. The Company continually monitors the credit standing of its customers.

Accounts Receivable, net

Accounts receivable, net consists primarily of trade receivables, net of allowances for doubtful accounts. The Company sells its products for cash or on credit terms, which are established in accordance with local and industry practices and typically require payment within 30 days of delivery. The Company estimates its allowance for doubtful accounts and the related expected credit loss based upon the Company’s historical credit loss experience, adjusted for asset-specific risk characteristics, current economic conditions, and reasonable forecasts. Accounts receivables are written off when determined to be uncollectible. For the nine months ended September 30, 2023, the Company required an allowance for doubtful accounts of $232,374.

Holdback Receivables

The Company primarily sells its products online using various third party sales affiliates. These affiliates (online marketing campaign companies) are paid certain commission based on their ability to provide the Company’s products through online sales. All payments are processed through various gateways and are settled through the Company’s payment gateway settler. The Company payment gateway settler is not responsible for settlements that are not paid due to processing bank failure. The Company holds responsibility for all the risk in all transactions and processing systems. The payment gateway settler charges a reserve fee to mitigate the risk on their end for any loss of funds or damages.

Distributions of the holdback receivables from the third-party payment gateway settler are based on several criteria, such as return and chargeback history, associated risk for the specific business vertical, average transaction amount, and so on. In order to mitigate processing risks, there are policies regarding reserve requirements and payment in arrears in place.

The total holdback receivables balance reflects the 0 to 10% reserve on gross sales and additional reserves by the third-party processor for additional returns and chargebacks if needed. Based on aging of the holdback receivables, the Company has determined that an allowance for doubtful accounts of $1,300,855 or 55% of holdback receivables should be deemed uncollectible recorded as bad debt expense. Thus, the adjusted holdback receivables balance was $1,043,991 as of December 31, 2022. As of September 30, 2023, the holdback receivables balance was $2,350,060.

Inventories

Inventories are valued at the lower of cost or net realizable value on a first-in, first-out basis, adjusted for the value of inventory that is determined to be excess, obsolete, expired, or unsaleable. Inventories primarily consisted of finished goods.

7

Advertising and Marketing

Advertising and marketing costs are charged to expense as incurred. Advertising and marketing costs were approximately $18,525,288 and $34,376,380 for the nine months ended September 30, 2023 and 2022, respectively, and are included in operating expenses in the accompanying statement of income.

Property and Equipment

Property and equipment are recorded at cost and consists of screen video and related equipment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation of property and equipment is over the estimated useful life of five to ten years using the straight-line method for consolidated financial statement purposes.

	September 30,			December 31,
	2023			2022
Machinery and equipment	$	39,067		$	37,463
Total		39,067			37,463
Less: accumulated depreciation		(8,541	)		(5,207	)
Total property and equipment, net	$	30,526		$	32,256

Depreciation expense for the three months ended September 30, 2023 and 2022 was $1,117 and $1,036, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022 was $3,334 and $4,649, respectively.

Revenue Recognition

Product Sales

The Company recognizes revenue when performance obligations under the terms of a contract with a customer are satisfied. The Company has determined that fulfilling and delivering products is a single performance obligation. Revenue is recognized at the point in time when the Company has satisfied its performance obligation and the customer has obtained control of the products. This generally occurs when the product is delivered to or picked up by the customer based on applicable shipping terms, which is typically within 15 days. Revenue is measured as the amount of consideration expected to be received in exchange for fulfilled product orders.

Customer remedies for defective or non-conforming products may include a refund or exchange. As a result, the right of return is estimated and recorded as a reduction in revenue at the time of sale, if necessary.

The Company’s customer contracts identify product quantity, price, and payment terms. Payment terms are granted consistent with industry standards. Although some payment terms may be extended, the majority of the Company’s payment terms are less than 30 days. As a result, revenue is not adjusted for the effects of a significant financing component. Amounts billed and due from customers are classified as Accounts Receivables on the Balance Sheet.

The Company utilizes third-party contract manufacturers for the manufacture of its products. The Company has evaluated whether it is the principal or agent in these relationships. The Company has determined that it is the principal in all cases as it retains the responsibility for fulfillment and risk of loss, as well as for establishing the price.

In accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, the Company has elected the practical expedient to expense the incremental costs to obtain a contract, because the amortization period would be less than one year, and the practical expedient for shipping and handling costs. Shipping and handling costs incurred to deliver products to customers are accounted for as fulfillment activities, rather than a promised service, and as such are included in Cost of Goods Sold in the Statements of Operations.

8

Service Revenue

Service revenue consists of digital marketing revenue.

Revenue related to digital marketing is recognized over time as services are provided to the customer. The Company sells digital marketing, digital and print design, social media marketing, and direct-to-consumer marketing and thus uses standalone selling prices as the basis for revenue. Payment for digital marketing services is typically received at the point when control transfers to the customer or in accordance with payment terms customary to the business. There was no deferred revenue related to services revenue as of September 30, 2023 and December 31, 2022.

Cost of Sales

Cost of sales includes the cost of inventory sold during the period, as well as commission fees, returns, chargebacks, distribution, and shipping and handling costs. The amount shown is net of various rebates from third-party vendors in the form of payments.

Refunds Payable

If customers are not satisfied for any reason, they may request a full refund, processed to the original form of payment, within 30 days from the order date. If the order has already been shipped, the Company charges a 20% restocking fee. The Company’s estimate of the reserve is based upon the Company’s most historical experience of actual customer returns.

As of September 30, 2023 and December 31, 2022, refunds payable were $34,673 and $213,930, respectively.

Chargebacks Payable

Once customers successfully dispute chargebacks with the payment processor, the Company returns such funds to the payment processor to return to the customer.

As of September 30, 2023 and December 31, 2022, chargebacks payable were $381,640 and $118,288, respectively.

Other Comprehensive Loss

The Company has no material components of other comprehensive loss and accordingly, net loss is equal to comprehensive loss for the period.

Convertible Debt

Convertible debt – derivative treatment – When the Company issues debt with a conversion feature, it must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows: a) one or more underlying terms, typically the price of the Company’s common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity. The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in shareholders’ equity in its statement of financial position.

If the conversion feature within convertible debt meets the requirements to be treated as a derivative, the Company estimates the fair value of the convertible debt derivative using the Black Scholes method upon the date of issuance. If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt. The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the Consolidated Statement of Operations. The debt discount is amortized through interest expense over the life of the debt.

9

If the conversion feature does not qualify for derivative treatment, the convertible debt is treated as traditional debt.

Income Taxes

The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under that guidance, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

Earnings (Loss) per Share

The Company calculates earnings per share in accordance with Financial Accounting Standards Board (“FASB”) ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. There were 1,336,163 shares of common stock underlying convertible promissory notes during the nine months ended September 30, 2023 that were not included in the computation of diluted Earnings Per Share for the same period, as the inclusion would have been antidilutive, given the Company’s net loss.

Equity Based Payments

The Company accounts for equity-based payment accruals under authoritative guidance as set forth in the Topics of the ASC. The guidance requires all equity-based payments to employees and non-employees, including grants of employee and non-employee stock options and warrants, to be recognized in the consolidated financial statements based at their fair values. The Company applies the provisions of ASC 718, “Compensation - Stock Compensation,” using a modified prospective application, and the Black-Scholes model to value stock options. Under this application, the Company records compensation expense for all awards granted. Compensation costs will be recognized over the period that an employee provides service in exchange for the award. During the nine months ended September 30, 2023 and 2022, the Company granted no securities under its 2020 Stock Incentive Plan, 2022 Restricted Stock Plan, and 2022 Stock Option Plan.

General Concentrations of Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are accounts receivable and other receivables arising from its normal business activities. The Company has a diversified customer base. The Company controls credit risk related to accounts receivable through credit approvals, credit limits, and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable related credit risk exposure beyond such allowance is limited.

The Company purchases merchandise from six suppliers, and the Company’s three largest suppliers accounted for 95% of total purchases for the year ended December 31, 2022. A significant portion of the Company’s inventory is manufactured in Asia. Foreign imports subject the Company to the risks of changes in, or the imposition of new, import tariffs, duties or quotas, new restrictions on imports, loss of “most favored nation” status with the United States for a particular foreign country, antidumping or countervailing duty orders, retaliatory actions in response to illegal trade practices, work stoppages, delays in shipment, freight expense increases, product cost increases due to foreign currency fluctuations or revaluations, public health issues that could lead to temporary closures of facilities or shipping ports, and other economic uncertainties. If a disruption of trade were to occur from the countries in which the suppliers of the Company’s vendors are located, the Company may be unable to obtain sufficient quantities of products to satisfy its requirements, or the cost of obtaining products may increase.

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A substantial amount of the Company’s inventory is manufactured in Asia. From time to time, shipping ports experience capacity constraints, labor strikes, work stoppages, or other disruptions that may delay the delivery of imported products. A contract dispute may lead to protracted delays in the movement of the Company’s products, which could further delay the delivery of products to the Company’s online stores and impact net sales and profitability. In addition, other conditions outside of the Company’s control, such as adverse weather conditions or acts of terrorism or war, could significantly disrupt operations at shipping ports or otherwise impact transportation of the imported merchandise the Company sells, either through supply chain disruptions or rising freight and fuel costs.

Operating Lease

In accordance with ASC 842, Leases, the Company determines whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the balance sheet as: right-of-use asset (“ROU asset”) and operating lease liability. ROU asset represents the Company’s right to use an underlying asset for the lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The ROU asset also includes deferred rent liabilities. The Company’s lease arrangements generally do not provide an implicit interest rate. As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU asset and liability. Lease expense for the operating lease is recognized on a straight-line basis over the lease term. The Company has a lease agreement with lease and non-lease components, which are accounted for as a single lease component.

Recent Accounting Pronouncements

In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends existing guidance related to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the effects the adoption of this guidance will have on the financial statements and does not expect that the adoption of this ASU will be material to its financial statements.

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Note 3 – Deconsolidation (Sale of Vybe Labs, Inc.)

On June 1, 2023, the Company entered into an Agreement for Purchase and Sale of Stock (the “Vybe Sale Agreement”) with Emblaze One, Inc., a Nevada corporation, (“Emblaze”) wherein the Company sold all 5,000 of its shares of common stock of its wholly owned subsidiary, Vybe Labs, Inc., a Delaware corporation (“Vybe”). Emblaze is a company 100% owned by the Company’s Chief Executive Officer, Chairman of the Board of Directors, and majority shareholder, Jaspreet Mathur.

The transaction is recorded as follows at the date of this transaction:

	June 1,
	2023
Total assets and liabilities deconsolidated for Vybe:
Total assets	$	1,156,733
Total liabilities		(1,356,750	)
Net assets (liabilities)	$	(241,365	)
Net amount of deconsolidation – Recorded as a Gain on Deconsolidation of Subsidiary	$	241,365

Note 4 – Fair Value Measurements

The Company utilizes ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:

Level 1.	Observable inputs such as quoted prices in active markets;
Level 2.	Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
Level 3.	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. There were no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. There have been no transfers between levels.

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Note 5 – Commitments and Contingencies

Commitments

Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The Company’s variable lease payments primarily consist of maintenance and other operating expenses from their real estate leases. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Contingencies

From time to time, the Company may be involved in certain legal actions and claims arising in the normal course of business. Management is of the opinion that such matters will be resolved without material effect on the Company’s financial condition or results of operations.

Note 6 – Note Payable

On March 1, 2021, an individual loaned Prime Time Live, Inc. $35,000 in exchange for an unsecured promissory note, with interest at a rate of 10% per annum, and a maturity date of March 1, 2022, which was then extended to May 31, 2023. Interest is due and payable on the first day of each month. As of September 30, 2023 and December 31, 2022, the balance was $35,000 and $35,000, respectively.

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Note 7 – Convertible Notes Payable

Convertible notes payable consisted of the following:

	September 30,		December 31,
	2023		2022
August 3, 2022 ($5,000,000)	$	5,000,000	$	5,000,000
August 3, 2022 ($1,000,000)		1,000,000		1,000,000
August 22, 2022 ($500,000)		500,000		500,000
September 22, 2022 ($250,000)		250,000		250,000
September 25, 2022 ($600,000)		600,000		600,000
September 25, 2022 ($600,000)		600,000		600,000
September 29, 2022 ($50,000)		50,000		50,000
September 29, 2022 ($500,000)		500,000		500,000
October 10, 2022 ($500,000)		500,000		500,000
October 13, 2022 ($750,000)		75,000		75,000
October 13, 2022 ($50,000)		50,000		50,000
October 14, 2022 ($50,000)		50,000		50,000
January 4, 2023 ($500,000)		500,000		-
Total convertible notes payable (current)	$	9,675,000	$	9,175,000

From August 3, 2022 through January 4, 2023, the Company conducted a convertible note offering for a maximum offering of $15,000,000 and a minimum of $2,000,000 (the “Convertible Note Offering”).

Pursuant to the terms of the Convertible Note, the principal amount of the Note that may be outstanding from time to time bears interest per annum until paid in full at a rate equal to 6%, compounded annually. The principal and interest of the Note was due and payable to the noteholder on the one-year anniversary of the date of the Note (the “Maturity Date”) unless all principal and interest due under the Note had been converted by the Maturity Date.

The conversion price was equal to $0.25 per share of common stock. The Notes had an automatic conversion upon the date of effectiveness of registration of the Notes on a registration statement filed with the Securities and Exchange Commission (the “SEC”), and were subject to a 4.99% beneficial ownership limitation. The Notes were convertible into shares of common stock at the option of the Noteholder at any time prior to the Maturity Date.

The Company analyzed the conversion option in the Notes for derivative accounting treatment under ASC Topic 815, “Derivatives and Hedging,” and determined that the instruments do not qualify for derivative accounting.

As of December 31, 2022, the Company received $9,175,000 from a total of 12 accredited investors pursuant to the Convertible Note Offering.

As of September 30, 2023, the Company received $9,675,000 from a total of 13 accredited investors pursuant to the Convertible Note Offering.

On October 1, 2023, the Company entered into Conversion Agreements with each of the convertible noteholders to convert their respective notes into shares of Class B Preferred Stock. Pursuant to the Conversion Agreements, each noteholder agreed to receive one share of Class B Stock for each $2.00 of principal and unpaid interest accrued through the closing date of the Conversion Agreement. As of the closing date of the Conversion Agreement, and each of them, no portion of any of the Notes had been converted into shares of the Company’s common stock.

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Note 8 – Loss on Settlement of Debt

On June 1, 2023, the Company agreed to a settlement of a debt in the amount of $1,167,011 and interest payable of $47,188 owed by the Company to Emblaze, a related party, under two Loan Authorization and Agreements dated April 1, 2022 and December 31, 2022, in the principal amounts of $237,610 and $929,401, respectively, and interest payable of $10,012 and $37,176, respectively, as part of the Vybe Sales Agreement with Emblaze.

The transaction is recorded as follows at the date of this transaction:

	June 1,
	2023
Total due to and due from between Limitless X and Vybe before deconsolidation:
Due to Emblaze One, Inc. by Limitless X	$	1,167,011
Interest payable		47,188
Due from Vybe Labs, Inc. by Limitless X		(1,356,750	)
Net due to (from)	$	(142,551	)
Net amount of deconsolidation – Recorded as a Loss on Settlement of Debt	$	142,551

Note 9 – Stockholders’ Deficit

Common Stock

As of September 30, 2023, the Company has 300,000,000 authorized shares of common stock par value $0.0001 per share. At September 30, 2023 and December 31, 2022, there was a total of 3,976,998 shares and 3,929,834 shares issued and outstanding, respectively.

Common Stock Issued for Services

On May 10, 2022 and June 10, 2022, the Company issued 36,000 and 684 shares of common stock, respectively, for services provided to the Company. These shares were valued at fair value at the time of issuance. On May 31, 2023, the Company issued 47,164 shares of common stock for services provided to the Company.

Preferred Stock

As of September 30, 2023, the Company has authorized 30,000,000 shares of preferred stock, 500,000 shares of which were designated as Class A Convertible Preferred Stock (“Class A Preferred Stock”).

● Class A Convertible Stock

At September 30, 2023 and December 31, 2022, there were a total of 500,000 shares of Class A Preferred Stock issued and outstanding. The Class A Preferred Stock, when voting as a single class, have the votes of at least 60% of the voting power of the Company. Further, the holder of the Class A Preferred Stock can convert one share of Class A Preferred Stock into two shares of the Company’s common stock, subject to adjustment. In addition, the holder of the Class A Preferred Stock is entitled to a liquidation preference of the Company senior to all other securities of the Company.

● Class B Convertible Stock

On October 23, 2023, pursuant to certain Conversion Agreements, the Company issued an aggregate of 10,349,097 shares of Class B Preferred Stock and extinguished $9,675,000 of convertible debt including accumulated interest as of October 23, 2023 in the amount of $674,097. The holders of the Class B Preferred Stock are entitled to a liquidation preference senior to common stock and junior to the Class A Preferred Stock at a liquidation price of $3.00 per share of Class B Preferred Stock. The Class B Preferred Stock also has conversion rights, whereby each share of Class B Preferred Stock is convertible into two shares of Common Stock in the discretion of the holder, subject to beneficial ownership limitations. The holders of the Class B Preferred Stock have no voting rights, unless otherwise provided for in its Certificate of Designation or by law.

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Note 10 – Equity Based Payments

The Company accounts for equity-based payment accruals under authoritative guidance as set forth in the Topics of the ASC. The guidance requires all equity-based payments to employees and non-employees, including grants of employee and non-employee stock options and warrants, to be recognized in the consolidated financial statements based at their fair values.

Stock Incentive Plans

Effective January 15, 2020, the Company adopted its 2020 Stock Option and Award Plan (the “2020 Stock Incentive Plan”). A total of 2,222 shares of the Company’s common stock were reserved for the 2020 Stock Incentive Plan. As of September 30, 2023, there were no grants made under the 2020 Stock Incentive Plan. On May 4, 2023, the Company terminated the 2020 Stock Incentive Plan.

Effective August 9, 2022, the Company adopted its 2022 Incentive and Nonstatutory Stock Option Plan (the “2022 Stock Option Plan”). Under the 2022 Stock Option Plan, the Board of Directors may grant options to purchase common stock to officers, employees, and other persons who provide services to the Company. A total of 833,333 shares of the Company’s common stock is reserved for the 2022 Stock Option Plan. As of September 30, 2023, there have been no options to purchase shares of common stock granted under the 2022 Stock Option Plan.

Effective August 9, 2022, the Company adopted its 2022 Restricted Stock Plan (the “2022 Restricted Stock Plan”). Under the 2022 Restricted Stock Plan, the Board of Directors may grant restricted stock to officers, directors, and key employees. A total of 833,333 shares of common stock is reserved for the 2022 Restricted Stock Plan. As of September 30, 2023, there have been no shares of common stock granted under the 2022 Restricted Stock Plan.

Note 11 – Related Party Transactions

Consulting Fees

During the three and nine months ended September 30, 2023, the Company incurred consulting fees in the amount of $0 and $10,000, respectively, to an officer and an officer of one of its affiliates. This compares to $6,000 and $38,500 for the three and nine months ended September 30, 2022, respectively.

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Royalty Payables

Limitless Performance Inc. (“LPI”), SMILZ INC. (“Smiles”), DIVATRIM INC. (“Divatrim”), and AMAROSE INC. (“Amarose,” and collectively with LPI, Smiles, and Divatrim, the “Licensors”) are all companies at least 50% owned by a shareholder of the Company. On December 1, 2021, the Company entered into manufacturing and distributorship license agreements (each, a “License Agreement”) with each of the Licensors to distribute each of the Licensors’ respective products and for payments to such Licensor for its product designs and distribution rights. Pursuant to the License Agreements, and each of them, the Company agreed to pay to such Licensors royalty payments equal to 4.00% of gross sales, excluding returns, chargebacks, and other such allowances.

The Company was required to start paying all earned royalties to each of the Licensors beginning on June 15, 2022. As of September 30, 2023 and December 31, 2022, the royalty payable is in the amount of $1,512,552 and $1,114,403, respectively.

On October 1, 2023, the Company terminated each of the License Agreements; however, the Company maintained its license for NZT-48 with LPI.

Notes payable to stockholder:

	September 30,		December 31,
	2023		2022
December 6, 2021 ($50,000)	$	50,000	$	50,000
February 11, 2022 ($150,000)		150,000		150,000
May 8, 2022 ($550,000)		550,000		550,000
May 9, 2022 ($1,100,000)		1,100,000		1,100,000
May 16, 2022 ($450,000)		450,000		450,000
June 1, 2022 ($500,000)		500,000		500,000
June 30, 2022 ($922,028)		922,028		922,028
August 25, 2022 ($290,000)		290,000		290,000
November 15, 2022 ($450,000)		450,000		450,000
May 16, 2023 ($150,000)		150,000		-
May 18, 2023 ($50,000)		50,000		-
June 5, 2023 ($150,000)		150,000		-
June 20, 2023 ($50,000) – Funding Commitment		50,000		-
July 13, 2023 ($50,000) – Funding Commitment		50,000		-
August 1, 2023 ($190,000) – Funding Commitment		190,000		-
August 7, 2023 ($50,000) – Funding Commitment		50,000		-
September 30, 2023 ($660,000) – Funding Commitment		660,000		-
September 30, 2023 ($138,817)		138,817		-
Total notes payable to stockholder (current)	$	5,950,845	$	4,462,028

December 6, 2021 – $50,000

On December 6, 2021, the Company entered into a Loan Authorization and Agreement for a loan of $50,000 from a shareholder, the proceeds of which were used to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $50,000 and $50,000, respectively. Beginning on June 1, 2022, the loan required a payment of $4,303 per month, which included principal and interest with an interest rate of 6 % per annum. The total balance of principal and interest of $51,640 was due on May 1, 2023.

February 11, 2022 – $150,000

On February 11, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $150,000 from a shareholder, the proceeds of which were to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $150,000 and $150,000, respectively. Beginning on June 1, 2022, the loan required a payment of $12,910 per month, which included principal and interest with an interest rate of 6% per annum. The total balance of principal and interest of $154,920 was due on May 1, 2023.

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May 8, 2022 – $550,000

On May 8, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $550,000 from a shareholder, the proceeds of which were to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $550,000 and $550,000, respectively. Beginning on June 1, 2022, the loan required a payment of $47,337 per month, which included principal and interest with an interest rate of 6% per annum. The total balance of principal and interest of $568,038 was due on May 1, 2023.

May 16, 2022 – $1,100,000

On May 16, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $1,100,000 from a shareholder, the proceeds of which were to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $1,100,000 and $1,100,000, respectively. Interest began accruing at the rate of 8.5% per annum on June 17, 2022 and was due on May 16, 2023.

May 18, 2022 – $450,000

On May 18, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $450,000 from a shareholder, the proceeds of which were to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $450,000 and $450,000, respectively. Interest began accruing at the rate of 8.5% per annum on June 19, 2022 and was due on May 18, 2023.

June 1, 2022 – $500,000

On June 1, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $500,000 from a shareholder, the proceeds of which were to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $500,000 and $500,000, respectively. Beginning on August 1, 2022, the loan required a payment of $43,494 per month, which included principal and interest with an interest rate of 8% per annum. The total balance of principal and interest of $521,931 was due on July 1, 2023.

September 30, 2022 – $922,028

On June 30, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $922,028 from a shareholder, the proceeds of which were to be used for working capital purposes. As of September 30, 2023 and December 31, 2022, the principal balance was $922,028 and $922,028, respectively. Beginning on August 1, 2022, the loan required a payment of $80,206 per month, which included principal and interest with an interest rate of 8% per annum. The total balance of principal and interest of $962,469 was due on August 1, 2023.

August 25, 2022 – $290,000

On August 25, 2022, the Company entered into a Loan Authorization Agreement for a loan of $290,000 from a shareholder, the proceeds of which were to be used for working capital purposes. The loan has an interest rate of 10% per annum and is due on demand. As of September 30, 2023 and December 31, 2022, the principal balance was $290,000 and $290,000, respectively.

November 15, 2022 – $450,000

On November 15, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $450,000 from a shareholder, the proceeds of which were to be used for working capital purposes. The loan has an interest rate of 10% per annum and is due on demand. As of September 30, 2023 and December 31, 2022, the principal balance was $450,000 and $450,000, respectively.

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May 16, 2023 – $150,000

On May 16, 2023, the Company entered into a Loan Authorization and Agreement for a loan of $150,000 from a shareholder, the proceeds of which were to be used for working capital purposes. The loan has an interest rate of 10% per annum and is due on demand. As of September 30, 2023, the principal balance was $150,000.

May 18, 2023 – $50,000

On May 18, 2023, the Company entered into a Loan Authorization and Agreement for a loan of $50,000 from a shareholder, the proceeds of which were to be used for working capital purposes. The loan has an interest rate of 10% per annum and is due on demand. As of September 30, 2023, the principal balance was $50,000.

June 5, 2023 – $150,000

On June 5, 2023, the Company entered into a Loan Authorization and Agreement for a loan of $150,000 from a shareholder, the proceeds of which were to be used for working capital purposes. The loan has an interest rate of 10% per annum and is due on demand. As of September 30, 2023, the principal balance was $150,000.

September 30, 2023 – $138,817

On September 30, 2023, the Company entered into a Loan Authorization and Agreement for a loan of $138,817 from a shareholder, the proceeds of which were to be used for working capital purposes. The loan has an interest rate of 10% per annum and is due on demand. As of September 30, 2023, the principal balance was $138,817.

Funding Commitment Agreement

On June 3, 2023, the Company entered into a Funding Commitment Agreement (the “Funding Commitment”) with its Chief Executive Officer and Chairman of the Board of Directors, Jaspreet Mathur, wherein Mr. Mathur committed to provide up to $1,000,000 of working capital to the Company over the next six months. Mr. Mathur agreed to the Funding Commitment in exchange for a one year convertible promissory note for each drawdown amount advanced to the Company with an annual interest rate of 10% and a balloon payment of principal and interest due at maturity, unless Mr. Mathur elects to convert the outstanding principal and interest into Class B Preferred Stock of the Company at the conversion price of $1.50 per share; provided, however, Mr. Mathur may only covert each note within the term of the Funding Commitment, in the event of the occurrence of the earlier of a public offering of securities of the Company pursuant to a registration statement filed with the SEC and declared effective pursuant to the Securities Act of 1933, upon completion of which the Company has a class of stock registered under the Securities Exchange Act of 1934 and that stock is listed on a national stock exchange, or a liquidation, merger, acquisition, sale of voting control or sale of substantially all of the assets of the Company in which the shareholders of the Company do not own a majority of the outstanding shares of the surviving corporation. For the avoidance of doubt, a national stock exchange includes Nasdaq, NYSE, and NYSE American, but excludes any over-the-counter quotation systems or trading platforms. The balance of the Funding Commitment are as follows:

	September 30,
	2023
June 20, 2023 ($50,000)	$	50,000
July 13, 2023 ($50,000)		50,000
August 1, 2023 ($190,000)		190,000
August 7, 2023 ($50,000)		50,000
September 30, 2023 ($660,000)		660,000
Total Funding Commitment	$	1,000,000

As of September 30, 2023, the balance of the Funding Commitment was $1,000,000.

Notes payables to related parties:

	September 30,		December 31,
	2023		2022
April 1, 2022 ($237,610)	$	-	$	237,610
May 10, 2022 ($12,500)		12,500		12,500
May 10, 2022 ($12,500)		12,500		12,500
May 10, 2022 ($20,000)		20,000		20,000
May 31, 2022 ($5,000)		5,000		5,000
May 31, 2022 ($15,000)		15,000		15,000
June 9, 2022 ($15,000)		15,000		15,000
December 31, 2022 ($929,401)		-		929,401
Total notes payable to related parties (current)	$	80,000	$	1,247,011

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April 1, 2022 – $237,610

On April 1, 2022, Limitless X entered into a Loan Authorization and Agreement for a loan of $237,610 with Emblaze, the proceeds of which were to be used for working capital purposes. Beginning on September 1, 2022, the loan required a payment of $20,669 per month, which included principal and interest. The total balance of principal and interest of $248,032 was due on August 1, 2023. As of September 30, 2023 and December 31, 2022, the balance was $0 and $237,610, respectively.

On June 1, 2023, the Company entered into an Agreement for Purchase and Sale of Stock with Emblaze, wherein the Company sold all 5,000 of its shares of common stock of its wholly owned subsidiary, Vybe Labs, to Emblaze as full payment and settlement of the loan for the principal amount of $237,610 owed by the Company to Emblaze.

May 10, 2022 - $12,500

On May 10, 2022, a related party of the Company loaned Prime Time Live, Inc. $12,500 in exchange for a promissory note that includes interest at the rate of 10% per annum on the unpaid principal balance, with all unpaid principal and interest due on or before May 10, 2023. Interest began accruing on May 10, 2022. As of September 30, 2023 and December 31, 2022, the principal balance was $12,500 and $12,500, respectively.

May 10, 2022 - $12,500

On May 10, 2022, a related party of the Company loaned Prime Time Live, Inc. $12,500 in exchange for a promissory note that includes interest at the rate of 10% per annum on the unpaid principal balance with all unpaid principal and interest due on or before May 10, 2023. Interest began accruing on May 10, 2022. As of September 30, 2023 and December 31, 2022, the principal balance was $12,500 and $12,500, respectively.

May 10, 2022 - $20,000

On May 10, 2022, a related party of the Company loaned Prime Time Live, Inc. $20,000 in exchange for a promissory note that included interest at the rate of 10% per annum on the unpaid principal balance with all unpaid principal and interest due on or before May 10, 2023. Interest began accruing on May 10, 2022. As of September 30, 2023 and December 31, 2022, the principal balance was $20,000 and $20,000, respectively.

May 31, 2022 - $5,000

On May 31, 2022, a related party of the Company loaned Prime Time Live, Inc. $5,000 in exchange for a promissory note that included interest at the rate of 10% per annum on the unpaid principal balance with all unpaid principal and interest due on or before May 31, 2023. Interest began accruing on May 31, 2022. As of September 30, 2023 and December 31, 2022, the principal balance was $5,000 and $5,000, respectively.

May 31, 2022 - $15,000

On May 31, 2022, a related party of the Company loaned Prime Time Live, Inc. $15,000 in exchange for a promissory note that included interest at the rate of 10% per annum on the unpaid principal balance with all unpaid principal and interest due on or before May 31, 2023. Interest began accruing on May 31, 2022. As of September 30, 2023 and December 31, 2022, the principal balance was $15,000 and $15,000, respectively.

June 9, 2022 - $15,000

On May 10, 2022, a related party of the Company loaned Prime Time Live, Inc. $15,000 in exchange for a promissory note that included interest at the rate of 10% per annum on the unpaid principal balance with all unpaid principal and interest due on or before May 10, 2023. Interest began accruing on May 10, 2022. As of September 30, 2023 and December 31, 2022, the principal balance was $15,000 and $15,000, respectively.

20

December 31, 2022 - $929,401

On December 31, 2022, the Company entered into a Loan Authorization and Agreement for a loan of $929,401 from Emblaze, the proceeds of which were to be used for working capital purposes. The loan had an interest rate of 8% per annum and was due on December 1, 2023. As of September 30, 2023 and December 31, 2022, the balance was $0 and $929,401, respectively.

On June 1, 2023, the Company entered into an Agreement for Purchase and Sale of Stock with Emblaze wherein the Company sold all 5,000 of its shares of common stock of Vybe Labs, as full payment and settlement of a debt in the in the principal amount of $929,401 owed by the Company to Emblaze.

Note 12 – Subsequent Events

The Company evaluated all events or transactions that occurred after September 30, 2023. During this period, the Company did not have any material recognizable subsequent events required to be disclosed other than the following:

● On October 1, 2023, the Company entered into Conversion Agreements with each of the convertible noteholders to convert their respective notes into shares of Class B Preferred Stock. Pursuant to the Conversion Agreements, each noteholder agreed to receive one share of Class B Preferred Stock for each $2.00 of principal and unpaid interest accrued through the closing date of the Conversion Agreement. As of the closing date of the Conversion Agreement, and each of them, no portion of any of the Notes had been converted into shares of the Company’s common stock.

● On October 1, 2023, the Company terminated the License Agreement for LPI, Smiles, Divatrim, and Amarose; however, the Company maintained its license for NZT-48 with LPI.

● On October 23, 2023, the Company filed a Certificate of Designation with the Secretary of State of the State of Delaware designating 5,000,000 shares of Class B Preferred Stock, as amended on November 9, 2023, to increase the designation to 11,000,000. The holders of the Class B Preferred Stock are entitled to a liquidation preference senior to common stock and junior to the Class A Preferred Stock at a liquidation price of $3.00 per share of Class B Preferred Stock. The Class B Preferred Stock also has conversion rights, whereby each share of Class B Preferred Stock is convertible into two shares of Common Stock in the discretion of the holder, subject to beneficial ownership limitations. The holders of the Class B Preferred Stock have no voting rights, unless otherwise provided for in its Certificate of Designation or by law.

● On October 23, 2023, pursuant to the Conversion Agreements, the Company issued an aggregate of 10,349,097 shares of Class B Preferred Stock and extinguished $9,675,000 of convertible debt including accumulated interest as of October 23, 2023 in the amount of $674,097.

21

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements and Associated Risks.

This Quarterly Report on Form 10-Q contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; and failure to successfully develop business relationships.

INTRODUCTION

On May 11, 2022, Bio Lab Naturals, Inc., a Delaware corporation (“Bio Lab”), entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Limitless X, Inc., a Nevada corporation (“LimitlessX”), and its 11 shareholders (the “LimitlessX Acquisition”). The parties completed and closed the LimitlessX Acquisition on May 20, 2022 by issuing an aggregate of 3,233,334 shares of common stock of Bio Lab to the LimitlessX shareholders (the “Acquisition Closing”). According to the terms of the Share Exchange Agreement, Bio Lab then issued an additional 300,000 shares of common stock to the LimitlessX shareholders pro rata to their interests in approximately six months from the Acquisition Closing as part of the Limitless Acquisition. Concurrently with the LimitlessX Acquisition, Jaspreet Mathur, the founder and principal shareholder of LimitlessX, also purchased from Helion Holdings LLC, 500,000 shares of Bio Lab’s Class A Preferred Convertible Stock, which at all times have a number of votes equal to 60% of all of the issued and outstanding shares of common stock of Bio Lab.

For accounting purposes, the LimitlessX Acquisition was accounted for as a “reverse merger” with LimitlessX as the accounting acquiror (legal acquiree) and Bio Lab as the accounting acquiree (legal acquiror). and, consequently, the transaction was treated as a recapitalization of Bio Lab. Since LimitlessX was deemed to be the accounting acquiror in the LimitlessX Acquisition, the historical financial information for periods prior to the LimitlessX Acquisition reflect the financial information and activities solely of LimitlessX and not of Bio Lab. No step-up in basis or intangible assets or goodwill was recorded in this transaction.

On June 10, 2022, Bio Lab changed its name to Limitless X Holdings Inc. (“we,” “us,” or “our”).

22

RESULTS OF OPERATION

For the Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022

	For the three months ended September 30,												Changes
	2023						2022
	Amount			% of Sales			Amount			% of Sales			Amount			%
Revenue
Product sales	$	1,005,924			44	%	$	12,114,278			56	%	$	(11,108,354	)		-92	%
Service revenue		1,261,814			56	%		9,378,900			44	%		(8,117,086	)		-87	%
Rentals		-			0	%		2,500			0	%		(2,500	)		-100	%
Total revenue		2,267,738			100	%		21,495,678			100	%		(19,227,940	)		-89	%
Cost of sales
Cost of sales		644,365			28	%		3,037,997			14	%		(2,393,632	)		-79	%
Total cost of sales		644,365			28	%		3,037,997			14	%		(2,393,632	)		-79	%
Gross profit		1,623,373			72	%		18,457,681			86	%		(16,834,308	)		-91	%
Operating expenses:
General and administrative		(1,129	)		0	%		660,068			3	%		(661,197	)		-100	%
Advertising and marketing		1,873,612			83	%		17,163,099			80	%		(15,289,487	)		-89	%
Transaction fees		75,050			3	%		1,401,892			7	%		(1,326,842	)		-95	%
Merchant fees		41,370			2	%		917,427			4	%		(876,057	)		-95	%
Royalty fees		18,324			1	%		472,082			2	%		(453,758	)		-96	%
Professional fees		91,642			4	%		272,963			1	%		(181,321	)		-66	%
Payroll and payroll taxes		859,512			38	%		258,934			1	%		600,578			232	%
Rent		37,609			2	%		41,177			0	%		(3,568	)		-9	%
Consulting fees, related party		-			0	%		6,000			0	%		(6,000	)		-100	%
Total operating expenses		2,995,990			132	%		21,193,642			99	%		(18,197,652	)		-86	%
Loss from operations		(1,372,617	)		-61	%		(2,735,961	)		-13	%		1,363,344			-50	%
Other income (expense)
Interest expense		(275,856	)		-12	%		(68,286	)		0	%		(207,570	)		304	%
Other expense		(132,000	)		-6	%		-			0	%		(132,000	)		N/A
Total other income (expense), net		(407,856	)		-18	%		(68,286	)		0	%		(339,570	)		497	%
Loss before income taxes		(1,780,473	)		-79	%		(2,804,247	)		-13	%		1,023,774			-37	%
Income tax provision		(48	)		0	%		-			0	%		(48	)		N/A
Loss	$	(1,780,425	)		-79	%	$	(2,804,247	)		-13	%	$	1,023,822			-37	%

23

Product Sales - Our product sales decreased by $11.1 million to $1.0 million for the three months ended September 30, 2023 as compared to $12.1 million for the three months ended September 30, 2022. In 2023, there was a shift in our marketing and selling strategies, including a change in performance marketers and platforms, which resulted in the decrease of product sales.

Service Revenue - Our service revenue decreased by $8.1 million from $9.4 million for the three months ended September 30, 2023 to $1.3 million for the three months ended September 30, 2022. Our service revenue decrease was primarily due to a shift in our marketing and selling strategies.

Cost of Sales - Our cost of sales decreased from $3.0 million, or 14% of sales, in the three months ended September 30, 2022, to $644,365, or 28% of sales, in the three months ended September 30, 2023. As operations decreased during the period, so did our costs for freight, inventory, and other supplies.

Gross Profit - Gross profit for the three months ended September 30, 2023 was $1.6 million compared to $18.5 million for the three months ended September 30, 2022. The decrease in gross profit of $16.8 million was primarily due to a shift in our marketing and selling strategies, including a change in performance marketers and platforms.

Operating Expenses - During the three months ended September 30, 2023, we recognized $3.0 million in operating expenses compared to $21.2 million for the three months ended September 30, 2022. The decrease of $18.2 million in operating expenses was primarily due to the decrease in our advertising, marketing, and payroll expenses, as well as a decrease in transaction fees, merchant fees, and royalty fees.

● Our advertising and marketing expenses decreased by $15.3 million due to a shift in marketing strategies from relying on performance marketers and celebrity endorsements.

● The increase in transaction payroll is related to accruals of unpaid salaries.

● The increase in transaction fees and merchant fees are directly related to the increased number of transactions during the three months ended September 30, 2023.

● Beginning on April 1, 2022, we began accruing royalties of 4.0% of gross sales (excluding returns, chargebacks, and other such allowances) pursuant to certain manufacturing and distributorship license agreements. During the three months ended September 30, 2023, the royalty fees decreased by $480,648 from the three months ended September 30, 2022.

24

For the Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022

	For the nine months ended September 30,												Changes
	2023						2022
	Amount			% of Sales			Amount			% of Sales			Amount			%
Revenue
Product sales	$	13,852,451			77	%	$	27,382,335			153	%	$	(13,529,884	)		-49	%
Service revenue		4,058,818			23	%		12,344,100			69	%		(8,285,282	)		-67	%
Rentals		15,000			0	%		7,500			0	%		7,500			100	%
Total revenue		17,926,269			100	%		39,733,935			222	%		(21,807,666	)		-55	%
Cost of sales
Cost of sales		3,717,216			21	%		5,837,994			33	%		(2,120,778	)		-36	%
Cost of sales - other		-			0	%		358			0	%		(358	)		-100	%
Total cost of sales		3,717,216			21	%		5,838,352			33	%		(2,121,136	)		-36	%
Gross profit		14,209,053			79	%		33,895,583			189	%		(19,686,530	)		-58	%
Operating expenses:
General and administrative		1,051,630			6	%		1,089,109			6	%		(37,479	)		-3	%
Advertising and marketing		18,525,288			103	%		34,376,380			192	%		(15,851,092	)		-46	%
Stock compensation for services		141,020			1	%		1,117,782			6	%		(976,762	)		-87	%
Transaction fees		1,159,896			6	%		1,988,718			11	%		(828,822	)		-42	%
Merchant fees		1,098,648			6	%		1,656,920			9	%		(558,272	)		-34	%
Royalty fees		398,149			2	%		704,203			4	%		(306,054	)		-43	%
Professional fees		1,211,759			7	%		940,945			5	%		270,814			29	%
Payroll and payroll taxes		2,931,357			16	%		392,605			2	%		2,538,752			647	%
Rent		123,401			1	%		121,570			1	%		1,831			2	%
Bad debt expense		232,374			1	%		-			0	%		232,374			N/A
Consulting fees, related party		10,000			0	%		38,500			0	%		(28,500	)		-74	%
Total operating expenses		26,883,522			150	%		42,426,732			237	%		(15,543,210	)		-37	%
Loss from operations		(12,674,469	)		-71	%		(8,531,149	)		-48	%		(4,143,320	)		49	%
Other income (expense)
Interest expense		(731,616	)		-4	%		(81,394	)		0	%		(650,222	)		799	%
Loss on debt settlement		(142,551	)		-1	%		-			0	%		(142,551	)		N/A
Other income		-			0	%		57,756			0	%		(57,756	)		-100	%
Other expense		(162,000	)		-1	%		-			0	%		(162,000	)		N/A
Gain on disposal of assets		-			0	%		28,397			0	%		(28,397	)		-100	%
Total other income (expense), net		(1,036,167	)		-6	%		4,759			0	%		(1,040,926	)		-21873	%
Loss before income taxes		(13,710,636	)		-76	%		(8,526,390	)		-48	%		(5,184,246	)		61	%
Income tax provision		-			0	%		6,402			0	%		(6,402	)		N/A
Gain on deconsolidation of subsidiary		241,365			1	%		-			0	%		241,365			N/A
Net loss	$	(13,469,271	)		-75	%	$	(8,532,792	)		-48	%	$	(4,936,479	)		58	%

25

Product Sales - Our product sales decreased by $13.5 million to $13.9 million for the nine months ended September 30, 2023 as compared from $27.4 million for the nine months ended September 30, 2022. In 2023, there was a shift in our marketing and selling strategies, including a change in performance marketers and platforms, which resulted in the decrease of product sales.

Service Revenue - Our service revenue decreased by $8.3 million to $4.1 million for the nine months ended September 30, 2023 as compared to $12.3 million for the nine months ended September 30, 2022. Our service revenue decrease was primarily due to a shift in our marketing strategies.

Cost of Sales - Our cost of sales decreased from $5.8 million, or 33% of sales, for the nine months ended September 30, 2022, to $3.7 million, or 21% of sales, for the nine months ended September 30, 2023. As operations decreased during the period, so did our costs for freight, inventory, and other supplies.

● For the nine months ended September 30, 2023, the average rate of return was 17%. Historically, the average return period is about two weeks from the sale of a product for the current period. For the nine months ended September 30, 2023, we determined the refund reserve to be $0 as there were no sales during the last two weeks of the period.

● For the nine months ended September 30, 2023, the average rate of chargebacks was 48%. Historically, the average chargeback period coincided with the return period and is about two weeks. For the nine months ended September 30, 2023, we determined the chargeback reserve to be $0 as there were no sales during the last two weeks of the period.

Gross Profit - Gross profit for the nine months ended September 30, 2023 was $14.2 million compared to $33.9 million for the nine months ended September 30, 2022. The decrease in gross profit of $19.7 million was primarily due to a shift in our marketing and selling strategies, including a change in performance marketers and platforms.

Operating Expenses - During the nine months ended September 30, 2023, we recognized $26.9 million in operating expenses compared to $42.4 million for the nine months ended September 30, 2022. The increase of $15.5 million in operating expenses was primarily due to advertising and marketing, payroll, transaction fees, merchant fees, royalty fees, and bad debt expense.

● Our advertising and marketing expense decreased by $15.9 million due to a shift in marketing strategies from relying on performance marketers.

● The increase in transaction payroll is related to accruals of unpaid salaries.

● The increase in transaction fees and merchant fees are directly related to the increased number of transactions during the nine months ended September 30, 2023.

● The increase of $232,374 in bad debt expense was due to accounts receivable being deemed uncollectible.

● Beginning on April 1, 2022, we began accruing royalties of 4.0% of gross sales (excluding returns, chargebacks, and other such allowances) pursuant to manufacturing and distributorship license agreements. During the nine months ended September 30, 2023, the royalty fees decreased by $332,944 from the nine months ended September 30, 2022.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

During the nine months ended September 30, 2023, net cash used in operating activities was $7.7 million. The cash used in operating activities was primarily due to net loss, timing of settlement of assets and liabilities, loss on settlement of debt, and was off-set by a gain in deconsolidation of a subsidiary.

26

Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2023 was $1,604.

Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2023 was $1,988,817. This amount was incurred by increased borrowings from investors and borrowings from a stockholder.

Off Balance Sheet Arrangements

None.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act. In designing and evaluating the 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. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on management’s evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as a result of the material weakness described below, as of September 30, 2023, our disclosure controls and procedures were not designed at a reasonable assurance level and are ineffective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, 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.

The material weakness, which relates to internal control over financial reporting, that was identified is:

We did not have sufficient personnel in our accounting and financial reporting functions. As a result, we were not able to achieve adequate segregation of duties and were not able to provide for independent adequate reviewing of the financial statements. This control deficiency, which is pervasive in nature, results in a reasonable possibility that material misstatements of the financial statements will not be prevented or detected on a timely basis.

Management believes that the hiring of additional personnel who have the technical expertise and knowledge with the non-routine or technical issues we have encountered in the past will result in both proper recording of these transactions and a much more knowledgeable finance department as a whole. Due to the fact that our accounting staff consists of a Chief Financial Officer, a bookkeeper, and external accounting consultants, additional personnel will also ensure the proper segregation of duties and provide more checks and balances within the department. Additional personnel will also provide the cross training needed to support us if personnel turnover issues within the department occur. We believe this will eliminate or greatly decrease any control and procedure issues we may encounter in the future.

We will continue to monitor and evaluate the effectiveness of our disclosure controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

27

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Our Annual Report on Form 10-K, filed with the SEC, on April 17, 2023, describes important risk factors that could cause our business, financial condition, results of operations, and growth prospects to differ materially from those indicated or suggested by forward-looking statements made in this Quarterly Report on Form 10-Q or presented elsewhere by management from time to time. There have been no material changes in the risk factors that appear in our Annual Report on Form 10-K. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 1, 2023, we entered into Conversion Agreements with each of the convertible noteholders from our August 3, 2022 Convertible Note Offering. Pursuant to the Conversion Agreements, each noteholder agreed to receive one share of Class B Preferred Stock for each $2.00 of principal and unpaid interest accrued through the closing date of the Conversion Agreement. On October 23, 2023, we issued an aggregate of 10,349,097 shares of Class B Preferred Stock in reliance on the exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. We did not receive any cash or other additional consideration for the Conversion Agreements.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURE

Not Applicable.

ITEM 5. OTHER INFORMATION

Not Applicable.

ITEM 6. EXHIBITS

Exhibits. The following is a complete list of exhibits filed as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K.

31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934
32.1	Certification of Chief Executive Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as an Inline XBRL document and included in Exhibit 101)

28

SIGNATURES

Pursuant to the requirements 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.

	LIMITLESS X HOLDINGS INC.
	(Registrant)
Dated: November 20, 2023	By:	/s/ Jaspreet Mathur
		Jaspreet Mathur
		(Chief Executive Officer,
		Principal Executive Officer)
Dated: November 20, 2023	By:	/s/ Benjamin Chung
		Benjamin Chung
		(Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer)

29