UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

þ☒ ANNUAL REPORT ~~UNDER~~PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2014~~2020

o☐ TRANSITION REPORT ~~UNDER~~PURSUANT ~~SECTION~~TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ~~________to_______~~___________ to ___________

~~Commission~~COMMISSION ~~file~~FILE ~~number~~ NO. 000-52506

ESP RESOURCES, INC.

(~~Name~~Exact name of ~~small~~registrant ~~business~~as ~~issuer~~specified in its charter)

Nevada		98-0440762
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1003 South Hugh Wallis Road, Suite G-1 Lafayette, Louisiana 70508		70508
(Address of principal executive offices)		(Zip Code)

Nevada

(~~832)~~State ~~342-9131~~or other jurisdiction of incorporation)

~~(Issuer’s telephone number)~~6770

~~Indicate~~(Primary byStandard ~~check~~Industrial Classification ~~mark~~Code ~~if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No þ~~Number)

~~Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o No þ~~98-0440762

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

~~Indicate~~1185 byAvenue ~~check~~of ~~mark whether~~ the ~~registrant has submitted electronically and posted on its corporate Web site~~Americas, if3rd any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12-months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No oFloor

~~Indicate~~New ~~by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein~~York, ~~and~~New ~~will~~York ~~not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o~~10036

~~Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non~~646-~~accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b~~768-~~2 of the Exchange Act.~~8417

~~Large accelerated filer o Accelerated filer o Non-Accelerated filer o Smaller reporting company þ~~ (DoAddress ~~not~~and ~~check~~telephone ifnumber aof ~~smaller~~registrant’s executive ~~reporting company~~office)

~~Indicate~~Securities byregistered ~~check~~pursuant ~~mark~~to ~~whether~~Section ~~the registrant is a shell company~~ 12(~~as defined in Rule 12b-2~~ b) of the ~~Exchange~~ Act~~) Yes o No þ~~:

~~State~~Title ~~the aggregate market value~~ of ~~the~~each ~~voting~~class ~~and~~Trading ~~non-voting~~Symbol ~~common~~Name ~~equity~~of ~~held~~each byexchange ~~non-affiliates~~on ~~computed by reference to the price at~~ which ~~the~~registered ~~common~~None ~~equity~~N/A ~~was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter was $2,602,659.~~N/A

~~There~~Securities ~~were 237,830,249~~registered ~~shares~~pursuant to Section 12(g) of the ~~Company’s~~Act: ~~common~~Common ~~stock outstanding as of April 13, 2015.~~Stock

~~Documents~~Indicate ~~incorporated~~ by ~~reference:~~check ~~None~~mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 pursuant to Section 13(a) of the Exchange Act. ☐

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

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, as of June 30, 2020, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $74,035 based on a closing price of $0.00038 as of such date. Solely for purposes of this disclosure, shares of common stock held by executive officers, directors, and beneficial holders of 10% or more of the outstanding common stock of the registrant as of such date have been excluded because such persons may be deemed to be affiliates.

As of July 20, 2021, the Registrant had 237,830,249 shares of common stock issued and outstanding.

ESP RESOURCES, INC.

FORM 10-K

ANNUAL REPORT

For the Fiscal Year Ended December 31, 2020

TABLE OF CONTENTS

		Page
Part I		1
PART I
Item 1	Business	1
Item 1.	Business	1
Item 1A	Risk Factors	5
Item 1A.	Risk Factors	3
Item 1B	Unresolved Staff Comments	10
Item 1B.	Unresolved Staff Comments	9
Item 2	Properties	11
Item 2.	Properties	9
Item 3	Legal Proceedings	11
Item 3.	Legal Proceedings	9
Item 4	Submission of Matters to a Vote of Security Holders	13
Item 4.	Mine Safety Disclosures	9
Part II		13
PART II
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	13
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	10
Item 6	Selected Financial Data	15
Item 6.	Selected Financial Data	10
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 7.	Management’s Discussion and Analysis of Financial Conditions and Results of Operations	11
Item 7A	Quantitative and Qualitative Disclosures about Market Risk	21
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 8	Financial Statements and Supplementary Data	21
Item 8.	Financial Statements and Supplementary Data	F-1
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	22
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	13
Item 9A	Controls and Procedures	22
Item 9A.	Controls and Procedures	13
Item 9B	Other Information	23
Item 9B.	Other Information	13
Part III		23
PART III
Item 10	Directors and Executive Officers and Corporate Governance	23
Item 10.	Directors, Executive Officers, and Corporate Governance	14
Item 11	Executive Compensation	26
Item 11.	Executive Compensation	15
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	28
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	16
Item 13	Certain Relationships and Related Transactions, and Director Independence	29
Item 13.	Certain Relationships and Related Transactions, and Director Independence	16
Item 14	Principal Accounting Fees and Services	29
Item 14.	Principal Accounting Fees and Services	16
Part IV		30
PART IV
Item 15	Exhibits, Financial Statement Schedules	30
Item 15.	Exhibits, Financial Statement Schedules	17
Signatures		33

PART I

ITEM 1. -DESCRIPTION OF BUSINESS

~~This~~As ~~annual~~used ~~report~~in ~~contains~~this ~~forward-looking~~annual ~~statements as that term is defined under applicable securities laws. These statements relate to future events or our future financial performance. In some cases~~report, ~~you~~the ~~can~~terms ~~identify forward-looking statements by terminology such as~~ “~~may,~~we” ~~“should~~,” “~~expects,~~us” ~~“plans~~,” “~~anticipates,~~our” ~~“believes~~,” “~~estimates,” “predicts,” “potential” or “continue” or~~ the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors,” that may cause the Company~~’s or our industry’s actual results~~”, ~~levels~~mean ofESP ~~activity~~RESOURCES, ~~performance~~INC. orunless ~~achievements~~otherwise ~~to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements~~indicated.

~~Although~~Cautionary weNote ~~believe~~Regarding ~~that the expectations reflected in the forward~~Forward-~~looking~~Looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.Statements

~~Our~~This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. These statements ~~are~~often ~~stated~~can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the ~~United~~future. ~~States~~However, ~~dollars~~forward-looking ~~(USD)~~statements are subject to risks, uncertainties and ~~are~~important ~~prepared~~factors inbeyond ~~accordance~~our ~~with~~control ~~United~~that ~~States~~could cause ~~generally~~actual ~~accepted~~results ~~accounting~~and ~~principles~~events ~~(GAAP)~~to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

~~Any~~The ~~reference~~results ~~herein~~anticipated toby ~~“ESP~~any ~~Resources,”~~or ~~the~~all ~~“Company~~of these forward-looking statements might not occur. Important factors,” ~~“we~~uncertainties,” ~~“our”~~and orrisks ~~“us”~~that ismay ~~intended~~cause actual results to ~~mean~~differ ~~ESP~~materially from ~~Resources,~~these ~~Inc~~forward-looking statements include those described in Item 1A., a– ~~Nevada~~Risk ~~corporation~~Factors. We undertake no obligation to publicly update or revise any forward-looking statements, ~~including~~whether ~~our~~as ~~subsidiaries~~the ~~unless~~result ~~otherwise~~of ~~indicated~~new information, future events, or otherwise.

InDescription ~~this Annual Report, unless otherwise specified, all references to “common shares” refer to the common shares~~ of ~~our capital stock, having a par value of $0.001 per share.~~Business

~~Corporate~~This ~~History~~annual report contains forward-looking statements as that term is defined under applicable securities laws. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors,” that may cause the Company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

WeAlthough ~~were~~we ~~incorporated~~believe onthat ~~October~~the 27expectations reflected in the forward-looking statements are reasonable, ~~2004~~we cannot guarantee future results, inlevels of activity, performance or achievements. Except as required by applicable law, including the ~~State~~securities laws of ~~Nevada~~the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. Our ~~principal~~financial ~~offices~~statements are ~~located~~stated atin ~~1003~~United ~~South~~States ~~Hugh~~dollars ~~Wallis~~(USD) ~~Road,~~and ~~Suite~~are ~~G-1,~~prepared in ~~Lafayette,~~accordance ~~Louisiana~~with ~~70508~~United States generally accepted accounting principles (GAAP).

~~Effective~~Any ~~September~~reference ~~28,~~herein ~~2007,~~to ~~we completed a merger with our subsidiary, Pantera Petroleum Inc., a Nevada corporation. As a result, we changed our name from~~ “~~Arthro~~ESP ~~Pharmaceuticals~~Resources, ~~Inc.~~” the to “~~Pantera Petroleum~~Company, ~~Inc.~~” ~~In addition, effective September 28, 2007,~~ “we ~~effected a sixteen-for-one forward stock split of our authorized~~,” ~~issued and outstanding common stock. As a result,~~ “our” ~~authorized~~or ~~capital~~“us” ~~increased~~is ~~from~~intended ~~75,000,000~~to ~~common~~mean ~~shares~~ESP ~~to 1~~Resources,~~200,000,000~~ ~~common shares with the same par value of $0~~Inc.~~001.~~, Ata ~~that~~Nevada ~~time~~corporation, including our ~~issued~~subsidiaries ~~and~~unless ~~outstanding~~otherwise ~~share capital increased from 6,970,909 common shares to 111,534,544 common shares~~indicated.

In ~~December~~this ~~2008~~Annual Report, ~~the~~unless ~~Company~~otherwise ~~entered into an agreement with ESP Resources~~specified, ~~Inc.,~~all areferences ~~Delaware corporation (~~to “~~ESP~~common ~~Delaware~~shares”), ~~whereby~~refer to the ~~Company acquired 100% ownership of ESP Delaware in exchange for 292,682,297~~ common shares. ~~As a result~~ of ~~this acquisition, we changed~~ our ~~name~~capital ~~from “Pantera Petroleum~~stock, ~~Inc.” to “ESP Resources, Inc.” On January 27, 2009, we effected~~ having a ~~one-for-twenty~~par ~~reverse~~value ~~stock split~~ of ~~our common stock and received a new ticker symbol~~$0.001 ~~The~~per ~~name change and reverse stock split became effective with the OTC Venture Stage Marketplace (OTCQB) at the opening of trading on January 27, 2009 under the new symbol “ESPI”~~share. ~~Our new CUSIP number is 26913L104.~~

On July 29, 2011 the shareholders decreased the authorized shares of our common stock from 1,200,000,000 shares to 350,000,000 shares and authorized a new class of stock, preferred stock having 10,000,000 shares of stock authorized at $.001 par value.Corporate History

1ESP Resources, Inc. (“ESP Resources” the “Company”) was incorporated in the State of Nevada on October 27, 2004.

~~Our~~On March ~~Business~~10, 2016, ESP Resources, Inc. (the “Company” and/or the “Debtor”) filed a voluntary petition (the “Voluntary Petition”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) Case No. 16-60021-H2-11 seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”). The Company’s bankruptcy case is being jointly administered with that of ESP Petrochemicals, Inc. under Case No. 16-60020-H2-11.

Through our subsidiaries, we manufacture, blend, distribute and market specialty chemicals and analytical services to the oil and gas industry and provide services for the upstream, midstream and downstream sectors of the energy industry, including new construction, major modifications to operational support for onshore and offshore production, gathering, refining facilities and pipelines designed to optimize performance and increase operators’ return on investment.1

~~ESP~~On January ~~Petrochemicals~~7, ~~Inc~~2021, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-825339-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of (the “Company”). David Lazar is the managing director of Custodian

~~Through~~On January ~~our wholly owned subsidiary ESP Petrochemicals~~7, ~~Inc. (“ESP Petro”)~~2021, weCustodian ~~offer~~appointed ~~analytical~~David ~~services~~Lazar ~~and~~as ~~essential custom-blended oil and gas well chemicals which improve production yields and overall efficiencies. Our mission is to provide applications of surface chemistry to service all facets of~~ the ~~fossil~~Company’s ~~energy~~Chief ~~business~~Executive ~~via~~Officer, aPresident, ~~high~~Secretary, ~~level~~Chief ofFinancial Officer, ~~innovation.~~Chief WeExecutive ~~focus~~Officer ~~our efforts on solving problems at the drilling site or well with a complex integration of chemicals~~ and ~~methods~~Chairman ~~to achieve the highest level~~ of ~~quality petroleum output. Constant management of our chemical applications at~~ the ~~drilling~~Board ~~site or well, continuous monitoring~~ of ~~the productivity and outflow levels of oil and gas, responding to customers’ changing demands and applying our skills as chemical formulators enable us to measure the impact we have in our business~~Directors.

~~ESP~~David ~~Petro~~Lazar, ~~acts as a manufacturer~~31, ~~distributor~~has ~~and~~been ~~marketer of specialty chemicals~~ CEO and ~~supply~~Chairman ~~specialty chemicals for a variety~~ of ~~oil~~the ~~and~~Company ~~gas~~since ~~field~~July ~~applications including killing bacteria~~14, ~~separating~~2020. ~~suspended~~David ~~water~~Lazar ~~and~~is ~~other~~a ~~contaminants~~private ~~from~~investor. ~~crude~~Mr. ~~oil,~~Lazar ~~separating~~has ~~the~~been ~~oil~~a ~~from~~partner ~~the~~at ~~gas,~~Zenith ~~pumping~~Partners ~~enhancement,~~International since ~~pumping cleaning~~2013, aswhere ~~well~~he asspecializes ain ~~variety~~research ~~of fluids~~ and ~~additives~~development, ~~used~~sales ~~in the drilling~~ and ~~production process~~marketing. AtFrom ~~each~~2014 ~~well~~through ~~that is in production~~2015, ~~there~~David ~~exist~~was athe ~~number~~Chief Executive Officer of ~~factors~~Dico, ~~that make each site unique~~Inc., ~~These~~which ~~include~~was ~~the~~then ~~depth~~sold ofto ~~the~~Peekay ~~producing~~Boutiques. ~~formation,~~Since ~~the~~February ~~bottom-hole temperature~~ of ~~the producing well~~2018, ~~the~~Mr. ~~size~~Lazar ofhas ~~the~~been ~~well head through which~~ the ~~producing~~managing ~~fluids~~member ~~flow, the size and pressure ratings~~ of ~~the~~Custodian Ventures ~~production equipment~~LLC, ~~including~~where ~~the~~he ~~separators,~~specializes ~~heater-treaters,~~in ~~compression~~assisting ~~equipment,~~distressed ~~size~~public ofcompanies. ~~production~~Since ~~tubulars~~March ~~in the wellbore~~2018, ~~size~~David ofhas ~~the~~acted ~~storage~~as ~~tanks on~~ the ~~customers’~~managing ~~location, and pressure ratings~~ member of ~~the~~Activist ~~sales~~Investing ~~lines~~LLC, ~~for~~which ~~the~~specializes ~~oil~~in ~~and~~active ~~gas~~investing ~~products. Wells that are operating short distances from each other~~ in ~~the~~distressed ~~same~~public ~~field can have very different characteristics~~companies. ~~This~~David ~~variance~~has ina ~~operating~~diverse ~~conditions,~~knowledge ~~chemical makeup~~ of ~~the oil~~financial, legal and ~~the~~operations ~~usage~~management; ofpublic ~~diverse~~company ~~equipment~~management, ~~requires~~accounting, aaudit ~~very~~preparation, ~~specific~~due ~~chemical~~diligence ~~blend~~reviews ~~to be used if maximum drilling~~ and ~~production~~SEC ~~well performance is to be attained~~regulations.

~~Our~~Competition ~~customer base is generally comprised of oil~~ and ~~gas~~Market exploration companies that plan, finance, drill and operate wells through the point of full depletion. Of the various stages involved in the development of an oil and gas well, we offer our products and services to our customers in principally two main areas: completion petrochemicals and production petrochemicals.Conditions

~~Completion~~We ~~Petrochemicals~~will face substantial competition in our efforts to identify and pursue a business venture. The primary source of competition is expected to be from other companies organized and funded for similar purposes, including small venture capital firms, blank check companies, and wealthy investors, many of which may have substantially greater financial and other resources than we do. In light of our limited financial and human resources, we are at a competitive disadvantage compared to many of our competitors in our efforts to obtain an operating business or assets necessary to commence our operations in a new field. Additionally, with the economic downturn caused by the coronavirus pandemic, many venture capital firms and similar firms and individuals have been seeking to acquire businesses at discounted rates, and we therefore currently face additional competition and resultant difficulty obtaining a business. We expect these conditions to persist at least until the economy recovers. Further, even if we are successful in obtaining a business or assets for new operations, we expect there to be enhanced barriers to entry in the marketplace in which we decide to operate as a result of reduced demand and/or increased raw material costs caused by the pandemic and other economic forces that are beyond our control.

Our completion petrochemicals are primarily used during the completion stage of oil or gas wells that are drilled in various shale formations in the United States. After a well is drilled, we deliver a specialized chemical equipment trailer, or chemical delivery unit, that is used in the pumping of chemicals during the hydraulic fracturing process. Hydraulic fracturing, or fracking, is a technology used to inject a fluid into a well to create fractures in the minerals containing the oil or gas. Usually the fluid is water, sand, and chemical additives. Our chemical delivery units pump chemicals to treat the fluids used in the completion of the oil and gas wells during the fracking process. Each unit consists of a trailer mounted pumping system with associated power generation components, a chemical supply trailer, safety and spill prevention equipment, communication devices, and computerized reporting equipment.Regulation

~~The~~As ~~units~~of ~~pump treatment chemicals to eliminate~~ the ~~bacteria~~date ~~contamination~~of ~~present~~this Report, inwe ~~the~~are ~~fluids~~required ~~used in the fracking process. We have developed a specialized chemical formulation that is intended~~ to ~~provide~~file ~~for~~reports awith ~~longer~~the ~~term~~Securities ~~bacteria-contamination~~and ~~elimination~~Exchange ~~time~~Commission ~~frame~~(the ~~than~~“SEC”) ~~what is currently supplied~~ by ~~our~~Section ~~competitors.~~13 ~~The~~of ~~longer term time frame is designed to provide our customers significant cost savings in~~ the ~~removal~~Securities Exchange ~~treatment~~Act of ~~contaminants~~1934 ~~from~~ (the ~~oil~~“Exchange ~~and gas well-stream once the well has been placed into production~~Act”).

2Depending on the direction management decides to take and a business or businesses we may acquire in the future, we may become subject to other laws or regulations that require us to make material expenditures on compliance including the increasing state-level regulation of privacy. Any such requirements could require us to divert significant human and capital resources on compliance, which could have an adverse effect on our future operating results.

Once the completion works is concluded at the well, which typically takes between 2-5 days, our chemical delivery units are moved out of the location and sent back to the appropriate district office for the next completion job.Employees

~~Production~~As ~~Petrochemicals~~of the date of this Report, we do not have employees. However, an entity controlled by our Chief Executive Officer provides part-time consulting services to us without compensation.

After a well has been completed and placed into production, we supply production chemicals and services that are designed to be administered throughout the life of the well. Through the utilization of over 100 base chemicals, we replicate well conditions, analyze the properties of the well, determine the precise mix of chemicals to treat the well and then inject the chemicals in small batches via our specialized equipment. Our production petrochemicals include, but are not limited to, drilling chemicals, waste remediation chemicals, cleaners and waste treatment chemicals as follows:2

●ITEM ~~Surfactants~~1A. ~~that~~RISK ~~are highly effective in treating production and injection problems at the customer well- head; ● Well completion and work-over chemicals that maximize productivity from new and existing wells;~~FACTORS

●Risks ~~Bactericides~~Relating ~~that~~to ~~kill~~Our ~~water~~Business ~~borne bacterial growth, thus preventing corrosion~~ and ~~plugging of the customer well-head and flowline; ● Scale compounds that prevent or treat scale deposits;~~Financial Condition

●We ~~Corrosion~~currently ~~inhibitors,~~have ~~which~~no ~~are~~operations, ~~organic~~and ~~compounds~~investors therefore ~~that~~have ~~form~~no abasis ~~protective film~~ on ~~metal~~which ~~surfaces~~ to ~~insulate~~evaluate the ~~metal~~Company’s ~~from~~future ~~its corrosive environment; ● Antifoams that provide safe economic means of controlling foaming problems;~~prospects.

●We ~~Emulsion~~currently ~~breakers,~~have ~~which~~no ~~are~~operations ~~chemicals~~and ~~specially~~will ~~formulated~~be ~~for~~reliant upon ~~crude~~a ~~oils~~merger ~~containing~~with ~~produced~~or ~~waters;~~acquisition ●of ~~Paraffin~~an ~~chemicals~~operating ~~that~~business ~~inhibit~~to commence operations and~~/or~~ ~~dissolve~~generate ~~paraffin~~revenue. toBecause ~~prevent~~we ~~buildup~~have ~~(their~~no ~~effectiveness~~operations and ishave not ~~diminished~~generated ~~when~~revenues, ~~used~~investors inhave ~~conjunction~~no basis upon which to evaluate our ability to achieve our business objective of locating and completing a business combination with ~~other~~a ~~chemicals);~~target business. We have no current arrangements or understandings with any prospective target business concerning a business combination and may be unable to complete a business combination in a reasonable timeframe, on reasonable terms, or at all. If we fail to complete a business combination as planned, we will never generate any operating revenues.

●We ~~Water~~may ~~clarifiers~~face ~~that~~difficulties ~~solve~~or ~~any~~delays in our search for a business combination, and ~~all~~we ofmay ~~the~~not ~~problems~~have ~~associated~~access ~~with~~to ~~purifying~~sufficient ~~effluent~~capital ~~water~~to ~~and~~consummate ~~that~~a ~~improve~~business ~~appearance~~combination.

~~Our~~We ~~first~~may ~~goal~~face isdifficulty toidentifying ~~solve~~a ~~our~~viable ~~customers’~~business opportunity ~~problem~~or atnegotiating ~~the~~or ~~well~~paying ~~and~~for ~~optimize~~any ~~drilling~~resulting orbusiness ~~production~~combination. ~~and,~~Economic ~~secondly~~factors that are beyond our control, including the COVID-19 ~~sale~~pandemic ofand ~~our~~consequent ~~products.~~economic ~~Typically~~downturn, ~~our~~as ~~service~~well ~~personnel~~as ~~gather~~increased ~~information~~competition atfor acquisitions of operating entities that we expect to encounter as a ~~well~~result thereof, may hinder our efforts to locate and/or ~~enter~~obtain ~~the~~a ~~data~~business ~~into~~that ~~the~~is ~~analytical~~suitable ~~system~~for our business goals at a ~~each~~price ofwe can afford and on terms that will enable us to sufficiently grow our ~~five~~business ~~respective~~to ~~district~~generate ~~offices~~value ~~located~~to inour ~~Rayne,~~shareholders. ~~Louisiana;~~We ~~Pharr~~have limited capital, ~~Texas;~~and ~~Victoria,~~we ~~Texas~~may ~~and~~not ~~Center,~~be ~~Texas.~~able ~~The~~to ~~analytical~~take ~~system~~advantage ~~provides~~of ~~testing~~any ~~parameters~~available ~~and~~business ~~reproduces~~opportunities ~~conditions~~on favorable terms or at all due to the ~~wellhead~~limited availability of capital. ~~This~~There ~~allows~~can ~~our~~be ~~technical~~no ~~team~~assurance ~~and~~that ~~chemists~~we will have sufficient capital to ~~design~~provide us with the necessary funds to successfully develop and ~~test~~implement aour ~~new~~plan ~~chemical~~of ~~blend~~operation inor acquire a ~~very~~business ~~short~~we ~~period~~deem ofto ~~time.~~be Inappropriate ~~many~~or ~~cases~~necessary to accomplish our objectives, ain ~~new~~which ~~blend~~case we may be inforced ~~service~~to atterminate ~~the~~our ~~well~~business plan and your investment in asthe ~~little~~Company ascould 24become ~~hours~~worthless.

~~Once~~If ~~the~~we ~~chemical~~are ~~blend~~not ~~has~~successful ~~been formulated and determined, the chemical is placed~~ in ~~service~~acquiring ~~at the wellhead of the customer by delivering~~ a ~~storage~~new business ~~tank, called a “day tank,” at the customer’s well-site location~~ and ~~filling~~generating ~~the~~material tank with the custom blended chemicals. The tank is tied to a pressure pump that provides the pumping capacity to deliver the chemical into the wellhead for the customer. This unique process shortens the chemical development time frame from what might have been as long as two months or more to a few days or hours. Management believes that the servicerevenues, ~~response~~investors ~~times~~will ~~and~~likely ~~chemical~~lose ~~products~~their ~~that the Company strives to provide its customers is a differentiating factor within the industry~~investment.

~~Discontinued~~If ~~operations~~we are not successful in developing a viable business plan and acquiring a new business through which to implement it, our investors’ entire investment in the Company could become worthless. Even if we are successful in combining with or acquiring the assets of an operating entity, we can provide no assurances that the Company will be able to generate significant revenue therefrom in the short-term or at all or that investors will derive a profit from their investment. If we are not successful, our investors will likely lose their entire investment.

OnIf ~~June~~we ~~11,~~cannot ~~2013,~~manage ~~the~~our ~~board~~growth ~~of directors resolved to discontinue operations of various subsidiaries~~effectively, we ~~including~~may ESP Facility and Pipeline Services, Inc., ESP Advanced Technologies, Inc., ESP KUJV Limited Joint Venture and ESP Marketing Group LLC (collectively, the “Discontinued Subsidiaries”). The Discontinued Subsidiaries were not ~~wholly-owned~~become ~~by the Company and, in accordance with the decision to discontinue operations, no longer receive financial or management support~~profitable. ~~The Company reflected 100% of the losses related to the subsidiaries in its results from discontinued operations.~~

3Businesses, including development-stage companies such as ours and/or any operating business or businesses we may acquire, often grow rapidly and tend to have difficulty managing their growth. If we are able to acquire an operating business, we will likely need to expand our management team and other key personnel by recruiting and employing experienced executives and key employees and/or consultants capable of providing the necessary support.

~~Competition~~We cannot assure you that our management will be able to manage our growth effectively or successfully. Our failure to meet these challenges could cause us to lose money, and your investment could be lost.

~~The~~Because ~~Company~~we ~~currently~~have ~~shares~~limited ~~market distribution with several~~capital, ~~significantly~~we ~~larger~~may participants, including Baker Petrolite (a Baker Hughs company), Nalco Energy Services (an Ecolab company), Champion Technologies, Inc., X-Chem, CESI Chemicals, Inc., BJ Services (a Baker Hughes company) and Multi-Chem Group (a Halliburton company). There are also many small need to ~~medium~~raise ~~sized~~additional ~~businesses~~capital ~~that are regionally located. To be competitive~~ in the ~~industry,~~future weby ~~need~~issuing todebt ~~continually~~or ~~enhance~~equity ~~and~~securities, ~~update our chemical processes and technologies to address~~ the ~~evolving~~terms ~~needs~~ of ~~our~~which ~~customers~~may ~~for~~dilute ~~increased production efficiency. We continue to allocate resources toward the development of new chemical processes to maintain the efficacy of~~ our ~~technology~~current investors and/or reduce ~~our~~or ~~ability~~limit totheir ~~compete~~liquidation soor ~~that~~other ~~we can continue to grow our business~~rights.

~~Our~~We ~~competitive~~may ~~strategy~~require isadditional capital to ~~provide~~acquire ~~better~~a business. ~~service~~We may not be able to obtain additional capital when required. Future business development activities, as well as administrative expenses such as salaries, insurance, general overhead, legal and ~~response~~compliance ~~times~~expenses, ~~combined~~and ~~with~~accounting ~~superior~~expenses ~~chemical~~will ~~solutions~~require ~~that~~a ~~can~~substantial amount of additional capital. The terms of securities we issue in future capital raising transactions may be ~~translated~~more ~~into~~favorable ~~savings~~to ~~for~~new investors, and may include liquidation preferences, superior voting rights or the issuance of other derivative securities, which could have a further dilutive effect on or subordinate the rights of our ~~customers~~current investors. WeAny ~~believe~~additional ~~that~~capital raised through the sale of equity securities will likely dilute the ownership percentage of our shareholders. Additionally, any debt securities we ~~are~~issue ~~able~~would tolikely ~~solve~~create ~~these~~a ~~problems~~liquidation preference ~~due~~superior tothat of our current investors and, if convertible into shares of Common Stock, would also pose the ~~following~~risk ~~competitive~~of ~~advantages:~~dilution.

~~● Personalized service; ● Expedited field analysis; and~~3

●We ~~Convenience~~may ~~and~~be ~~access~~unable to ~~the~~obtain ~~best~~necessary ~~available~~financing ~~market~~if ~~rates~~ and ~~products that we can produce and identify for our customers that are currently offered by our suppliers~~when required.

~~Additionally~~Our ability to obtain financing, ~~new~~if ~~companies~~and ~~are~~when ~~constantly~~necessary, may ~~entering~~be impaired by such factors as the ~~market.~~capital ~~This~~markets ~~growth~~(both in general and ~~fragmentation~~in ~~could~~the ~~also~~particular ~~have~~industry aor ~~negative~~industries ~~impact~~in onwhich ~~our~~we ~~ability~~may choose to ~~obtain~~operate), ~~additional~~our limited operating history and current lack of operations, the national and global economies, and the condition of the market ~~share.~~for ~~Larger~~microcap ~~companies~~securities. Further, ~~which~~economic ~~have~~downturns ~~been~~such ~~engaged~~as inthe ~~this~~current ~~business~~global depression caused by the COVID-19 pandemic may increase our requirements for ~~substantially~~capital, ~~longer~~particularly ~~periods~~if such economic downturn persists for an extended period of time or after we have acquired an operating entity, and may ~~have~~limit ~~access~~or tohinder ~~greater~~our ~~financial~~ability ~~resources~~to ~~and~~obtain ~~industry~~the ~~relationships~~funding we require. ~~These~~If ~~companies~~the ~~may~~amount ~~have~~of ~~greater~~capital ~~success~~we inare ~~recruiting~~able to ~~and~~raise ~~retaining~~from ~~qualified~~financing ~~employees~~activities, intogether ~~specialty~~with ~~chemical~~any ~~manufacturing~~revenues ~~and~~we ~~marketing~~may generate from future operations, ~~which~~is not sufficient to satisfy our capital needs, we may ~~give~~be ~~them~~required to discontinue our development or implementation of a ~~competitive~~business ~~advantage~~plan, cancel our search for business opportunities, cease our operations, divest our assets at unattractive prices or obtain financing on unattractive terms. If any of the foregoing should happen, our shareholders could lose some or all of their investment.

~~Government~~Because ~~Approval~~we ~~and~~are ~~Regulation~~still developing our business plan, we do not have any agreement for a business combination.

We ~~are~~have ~~subject~~no tocurrent ~~federal~~arrangement, ~~state~~agreement ~~and~~or ~~local~~understanding with ~~environmental~~respect ~~laws,~~to ~~rules,~~engaging ~~regulations,~~in ~~and~~a ~~ordinances,~~business ~~including~~combination ~~those~~with ~~concerning~~any ~~emissions~~specific ~~and~~entity. ~~discharges,~~We ~~and~~may ~~the~~not ~~generation,~~be ~~handling,~~successful ~~storage,~~in ~~transportation,~~identifying ~~treatment, disposal~~ and ~~import~~evaluating ~~and~~a suitable ~~export~~acquisition ofcandidate ~~hazardous~~or ~~materials~~in ~~(collectively,~~consummating ~~“Environmental~~a ~~Laws”)~~business combination. ~~The~~We ~~operation~~are ofneutral ~~the~~as ~~Company’s~~to ~~facilities~~what ~~and~~industry ~~the~~or ~~distribution~~segment ~~of chemical products entail risks under Environmental Laws, many of which provide~~ for ~~substantial~~any ~~remediation~~target company. ~~costs~~We inhave ~~the~~not ~~event~~established ofspecific ~~discharges~~metrics ~~of contaminants~~ and ~~fines~~criteria ~~and~~we ~~sanctions~~will look for ~~violations. Violations of Environmental Laws could result~~ in ~~the~~a ~~imposition~~target ofcompany, ~~substantial criminal fines~~ and ~~penalties~~if ~~against the Company~~ and ~~their~~when ~~officers~~we ~~and~~do ~~employees~~we inmay ~~certain~~face difficulty ~~circumstances.~~reaching ~~The~~a ~~costs~~mutual ~~associated~~agreement with ~~responding~~any tosuch ~~civil or criminal matters can be substantial. Also~~entity, ~~significant~~including ~~civil~~in orlight ~~criminal~~of ~~violations~~market ~~could~~trends ~~adversely~~and ~~impact~~forces ~~the~~beyond ~~Company’s~~our ~~marketing~~control. ~~ability~~Given our inearly-stage ~~the~~status, ~~region~~there ~~served~~is byconsiderable ~~the~~uncertainty ~~Company. Compliance with existing~~ and ~~future~~therefore ~~Environmental~~inherent ~~Laws~~risk ~~may~~to ~~require~~investors ~~significant~~that ~~capital expenditures by the Company, although~~ we dowill not ~~anticipate~~succeed ~~having~~in todeveloping and ~~expend~~implementing ~~significant~~a ~~resources~~viable tobusiness ~~comply with any governmental regulations applicable to our current operations~~plan.

WeThe ~~are~~COVID-19 ~~required~~pandemic tocould ~~obtain~~materially ~~licenses~~adversely affect ~~and permits from various governmental authorities in connection with~~ our ~~operations.~~financial Wecondition, ~~anticipate~~future ~~that~~plans ~~we will be able to obtain all necessary licenses~~ and ~~permits~~results ~~to carry on the activities which we intend to conduct, and that we intend to comply in all material respects with the terms~~ of such licenses and permits. However, there can be no guarantee that we will be able to obtain and maintain, at all times, all necessary licenses and permits required to undertake our proposed exploration and development or to place our properties into commercial production. In the event that we proceed with our operation without necessary licenses and permits, we may be subject to large fines and possibly even court orders and injunctions to cease operations.

~~Oil~~This ~~and~~COVID-19 ~~gas~~pandemic ~~operations~~has ~~are~~had ~~subject~~a tosignificant ~~federal~~adverse effect ~~and~~on ~~state~~the ~~laws~~economy ~~and~~in ~~regulations~~the ~~that~~United ~~seek~~States toand ~~maintain~~on ~~health~~most ~~and~~businesses. ~~safety~~The ~~standards~~Company byis ~~regulating~~not able to predict the ~~design~~ultimate ~~and~~impact ~~use~~that ofCOVID ~~drilling~~-19 will ~~methods~~have ~~and~~on ~~equipment.~~its ~~Furthermore~~business; however, ~~oil~~if the pandemic and ~~gas~~government ~~operations~~action in ~~the~~response ~~United~~thereto ~~States~~impose ~~are~~limitations ~~subject~~on toour ~~federal~~operations ~~and~~or result ~~state~~in ~~laws~~a ~~and~~prolonged ~~regulations~~economic ~~concerning~~recession or depression, the ~~construction~~Company’s development and ~~operation~~implementation of ~~facilities~~its business plan and our ability to commence and grow our operations, ~~the~~as ~~use~~well ofas ~~water~~our inability ~~industrial~~to ~~processes~~generate material revenue therefrom, ~~the~~will ~~removal~~be ofhindered, ~~natural~~which ~~resources~~would have ~~from~~a ~~the~~material ~~ground~~negative ~~and~~impact on the ~~discharge/release~~Company’s offinancial ~~materials~~condition ~~into~~and ~~the~~results ~~environment~~of operations.

4Because we are dependent upon David Lazar, our Chief Executive Officer and sole director to manage and oversee our Company, the loss of him could adversely affect our plan and results of operations.

We ~~are~~currently ~~also~~have ~~subject~~a tosole director and officer, David Lazar, who manages the ~~laws~~Company and ~~regulations~~is ~~that~~presently ~~are~~evaluating ~~generally~~a ~~applicable~~viable toplan for our future operations. We will rely solely on his judgment in connection with selecting a target company and the terms and structure of any resulting business combination. The loss of our Chief Executive Officer could delay or prevent the achievement of our business objectives, which could have a material adverse effect upon our results of operations and financial position. Further, ~~such~~because Mr. Lazar serves as ~~business~~Chief ~~licensing~~Executive ~~requirements,~~Officer ~~income~~and ~~taxes~~sole director and ~~payroll~~also holds ~~taxes~~a controlling interest in the Company’s Common Stock, our other shareholders will have limited ability to influence the Company’s direction or management.

~~There~~In ~~can~~addition, bealthough nonot ~~assurance~~likely, ~~that~~the ~~past~~officers and ordirectors ~~future~~of an acquisition candidate may resign upon completion of a combination with their business. The departure of a target’s key personnel could negatively impact the operations ~~will~~and ~~not~~prospects ~~result~~of inour post-combination business. The role of a target’s key personnel upon the ~~Company~~completion ~~incurring~~of ~~material~~the ~~environmental~~transaction ~~liabilities~~cannot ~~and~~be ~~costs~~ascertained orat this time. Although we contemplate that ~~compliance~~certain ~~with~~or ~~Environmental~~all ~~Laws~~members of ~~will~~a ~~not~~target’s ~~require~~management ~~material~~team ~~capital~~may ~~expenditures~~remain byassociated with the ~~Company,~~target ~~each~~following a change of ~~which~~control ~~could~~thereof, ~~have~~there acan ~~material~~be ~~adverse~~no ~~effect~~assurance that onall ~~the~~of ~~Company~~such target’s ~~results~~management team will decide to remain in place. The loss of key personnel, either before or after a business combination and including management of either us or a combined entity could negatively impact the operations and ~~financial~~profitability ~~condition~~of our business.

~~The~~Risks ~~Company~~Related ~~knows of no existing contamination sites where the Company supplies petrochemicals for our current customer locations. The title for the chemicals that we supply~~ to ~~our~~a ~~customer~~Potential ~~base~~Business passes from us to the customer upon delivery of the chemical to the customer location. We have insurance that covers accidental spillage and cleanup at our blending location and for transportation to the customer location; however, the customer is responsible for the integrity of the chemical once the chemical blend is delivered to the receiving point of the customer.Acquisition

~~Number~~We may encounter difficulty locating and consummating a business combination, including as a result of ~~Employees~~the competitive disadvantages we have.

OnWe ~~December~~expect ~~31,~~to ~~2014,~~face weintense ~~had~~competition 38in ~~full-time~~our ~~employees.~~search for Wea ~~expect~~revenue-producing business to ~~increase~~combine with or acquire. Given the ~~number~~current ofeconomic ~~employees~~climate, venture capital firms, larger companies, blank check companies such as wespecial ~~implement~~purpose ~~our~~acquisition ~~business~~companies ~~objectives~~and other investors are purchasing operating entities or the assets thereof in high volumes and ~~expand~~at ~~our~~relatively ~~management~~discounted ~~team~~prices. ~~None~~These ofparties ~~our~~may ~~employees~~have ~~are~~greater ~~represented~~capital byor ahuman ~~labor~~resources ~~union~~than we do and/or more ~~covered~~experience byin a ~~collective~~particular ~~bargaining~~industry ~~agreement.~~within ~~The~~which ~~management~~we choose to search. Most of ~~the~~these ~~Company~~competitors ishave ~~comprised~~a certain amount of aliquid ~~team~~cash available to take advantage of ~~highly~~favorable ~~skilled~~market ~~and~~conditions ~~experienced~~for ~~professionals~~prospective business purchaser such as those caused by the recent pandemic. Any delay or inability to locate, negotiate and weenter ~~focus~~into ona ~~training~~business ~~and~~combination ~~professional~~as ~~development~~a ~~for~~result ~~all~~of ~~levels~~the relative illiquidity of ~~employees~~our ~~and~~current asset onor ~~hiring~~other ~~additional~~disadvantages ~~experienced~~we ~~employees~~have relative to our competitors could cause us to lose valuable business opportunities to our competitors, which would have a material adverse effect on our business.

~~ITEM 1A - RISK FACTORS~~4

~~The~~We ~~shares~~may ofexpend ~~our~~significant ~~common~~time ~~stock~~and ~~are~~capital on ~~highly speculative in nature, involve~~ a ~~high~~prospective degree of risk and should be purchased only by persons who can afford to lose the entire amount invested in the common stock. You should carefully consider the risks described below and the other information in this annual report before investing in our common stock. If any of the following risks actually occurs, our business, ~~financial~~combination ~~condition~~that oris ~~operating~~not ~~results~~ultimately ~~could be materially adversely affected~~consummated. ~~In such case, the trading price of our common stock could decline due to any of these risks, and you may lose all or part of your investment.~~

~~RISKS~~The ~~RELATED~~investigation TOof ~~OUR~~each ~~BUSINESS~~specific target business and any subsequent negotiation and drafting of related agreements, SEC disclosure and other documents will require substantial amounts of management’s time and attention and material additional costs in connection with outsourced services from accountants, attorneys, and other professionals. We will likely expend significant time and resources searching for, conducting due diligence on, and negotiating transaction terms in connection with a proposed business combination that may not ultimately come to fruition. In such event, all of the time and capital resources expended by the Company in such a pursuit may be lost and unrecoverable by the Company or its shareholders. Unanticipated issues which may be beyond our control or that of the seller of the applicable business may arise that force us to terminate discussions with a target company, such as the target’s failure or inability to provide adequate documentation to assist in our investigation, a party’s failure to obtain required waivers or consents to consummate the transaction as required by the inability to obtain the required audits, applicable laws, charter documents and agreements, the appearance of a competitive bid from another prospective purchaser, or the seller’s inability to maintain its operations for a sufficient time to allow the transaction to close. Such risks are inherent in any search for a new business and investors should be aware of them before investing in an enterprise such as ours.

~~Our~~Conflicts ~~specialty~~of ~~chemical~~interest ~~business~~may ~~will~~arise bebetween ~~dependent~~us onand ~~the~~our ~~oil~~shareholders, directors, ~~and~~or ~~gas~~management, ~~industry~~ which ~~has~~may ~~historically~~have ~~been~~a ~~volatile~~negative ~~and~~impact ~~could~~on ~~negatively~~our ~~affect~~ability ~~our~~to ~~results~~consummate ofa ~~operations~~business combination or favorable terms or generate revenue.

~~Demand~~Our ~~for~~Chief ~~our~~Executive ~~oil~~Officer, ~~and~~Mr. ~~gas~~Lazar, ~~field~~is ~~specialty~~not required ~~chemical~~to ~~products~~commit ~~and~~his ~~services~~full ~~depends~~time into ~~large~~our ~~part~~affairs, ~~upon~~which ~~the~~may ~~level~~result in a conflict of ~~exploration~~interest ~~and~~in ~~production~~allocating ofhis ~~oil~~time ~~and~~between ~~gas~~managing the Company and ~~the~~other ~~industry’s~~businesses ~~willingness~~in towhich ~~spend~~he ~~capital~~is onor ~~environmental~~may ~~and~~be ~~oil~~involved. ~~and~~We ~~gas~~do ~~field~~not ~~services,~~intend ~~which~~to inhave ~~turn~~any ~~depends~~employees onprior ~~oil~~to ~~and~~the ~~gas~~consummation ~~prices,~~of ~~expectations~~a business ~~about~~combination. ~~future~~Mr. ~~prices,~~Lazar ~~the~~is ~~cost~~not obligated to contribute any specific number of ~~exploring~~hours ~~for,~~to ~~producing~~our affairs, and ~~delivering~~he ~~oil~~may ~~and~~engage ~~gas,~~in other business endeavors while he provides consulting services to the ~~discovery~~Company. ~~rate~~If any of ~~new~~his ~~oil~~other ~~and~~business ~~gas~~affairs ~~reserves~~require ~~and~~him ~~the~~to ~~ability~~devote substantial amounts of ~~oil~~time ~~and~~to ~~gas~~such ~~companies~~matters, it could materially limit his ability to ~~raise~~devote ~~capital.~~his ~~Domestic~~time and ~~international~~attention ~~political,~~to ~~military,~~our ~~regulatory~~business ~~and~~which ~~economic~~could ~~conditions~~have a ~~also~~negative ~~affect~~impact ~~the~~on ~~industry~~our ability to consummate a business combination or generate revenue.

~~Prices~~It ~~for~~is ~~oil~~possible ~~and~~that ~~gas~~we ~~historically~~obtain ~~have~~an ~~been~~operating ~~volatile~~company in ~~and~~which ~~have~~a ~~reacted~~director toor ~~changes~~officer ~~in the supply~~ of ~~and~~ the ~~demand~~Company ~~for~~has ~~oil~~an ~~and~~ownership ~~natural~~interest ~~gas,~~in ~~domestic~~or ~~and~~that ~~worldwide~~he ~~economic~~or ~~conditions~~she ~~and~~is ~~political~~an ~~instability~~officer, indirector, ~~oil~~or ~~producing~~employee ~~countries~~of. If Nowe ~~assurance~~do ~~can~~obtain beany ~~given~~business ~~that~~affiliated ~~current~~with ~~levels~~an ofofficer ~~oil~~or ~~and~~director, ~~gas~~such ~~activities~~business ~~will~~combination may be ~~maintained~~on orterms ~~that~~other ~~demand~~than ~~for~~what ~~our~~would ~~services~~be arrived ~~will~~at ~~reflect~~in ~~the~~an ~~level~~arms-length ~~of such activities~~transaction. ~~Prices~~If ~~for~~any ~~oil~~conflict ~~and~~of ~~natural~~interest ~~gas~~arises, ~~are~~it ~~expected~~could toadversely ~~continue to be volatile and~~ affect ~~the~~a ~~demand~~business ~~for~~combination ~~specialty~~or ~~chemical~~subsequent operations ~~products~~of ~~and~~the ~~services~~Company, ~~such as ours. A material decline~~ in ~~oil~~which orcase ~~natural~~our ~~gas~~shareholders ~~prices~~may orsee ~~activities~~diminished ~~could~~value ~~materially~~relative ~~affect~~to ~~the~~what ~~demand~~would ~~for~~have ~~our~~been ~~products~~available ~~and~~through a ~~services~~transaction ~~and,~~with ~~therefore,~~an ~~our~~independent ~~financial~~third ~~condition~~party.

5We may engage in a business combination that causes tax consequences to us and our shareholders.

~~Competition~~Federal and state tax consequences will, in all likelihood, be a significant factor in considering any business combination that we may undertake. Under current federal law, such transactions may be subject to significant taxation to the ~~oil~~buyer and ~~gas~~its ~~services~~shareholders ~~industry~~under isapplicable ~~very~~federal ~~intense~~and state tax laws. While we intend to structure any business combination so as to minimize the federal and state tax consequences to the extent practicable in accordance with our business objectives, there iscan be no assurance that any business combination we undertake will bemeet ~~successful~~the statutory or regulatory requirements of a tax-free reorganization or similar favorable treatment or that the parties to such a transaction will obtain the tax treatment intended or expected upon a transfer of equity interests or assets. A non-qualifying reorganization, combination or similar transaction could result in ~~acquiring~~the ~~new~~imposition ~~customers~~of ~~over~~significant taxation, both at the federal and state levels, which may have an adverse effect on both parties to the transaction, including our ~~competitors~~shareholders.

The oil and gas service industry is very competitive. We compete with numerous companies, including companies that are much larger and have substantially greater technical, financial and operational resources and staff. We are required to obtain licenses and permits from various governmental authorities. We anticipate that we will be able to obtain all necessary licenses and permits to carry on the activities which we intend to conduct, and that we intend to comply in all material respects with the terms of such licenses and permits. However, there can be no guarantee that we will be able to obtain and maintain, at all times, all necessary licenses and permits required to continually operate our business.5

~~The~~It ~~potential~~is ~~costs~~unlikely ofthat ~~environmental compliance in~~ our ~~petrochemical~~shareholders ~~business~~will ~~could~~be afforded ~~have~~any aopportunity ~~material~~to ~~negative~~evaluate ~~economic~~or ~~impact~~approve ona ~~our~~business ~~operations and financial condition~~combination.

~~Our~~It ~~specialty~~is ~~chemical~~unlikely ~~business~~that isour ~~subject~~shareholders towill ~~federal,~~be ~~state~~afforded the opportunity to evaluate and ~~local~~approve ~~environmental~~a ~~laws,~~proposed ~~rules,~~business ~~regulations,~~combination. ~~and~~In ~~ordinances~~most cases, ~~including~~business ~~those~~combinations ~~concerning~~do ~~emissions~~not ~~and~~require ~~discharges,~~shareholder approval ~~and~~under ~~the~~applicable ~~generation~~law, ~~handling,~~and ~~storage,~~our ~~transportation,~~Articles ~~treatment,~~of ~~disposal~~Incorporation and ~~import~~Bylaws ~~and~~do ~~export~~not ofafford ~~hazardous~~our ~~materials~~shareholders ~~(“Environmental~~with ~~Laws”)~~the right to approve such a transaction. ~~The~~Further, ~~operation~~Mr. ofLazar, ~~the~~our ~~Company’s~~Chief ~~facilities~~Executive Officer and ~~the~~sole ~~distribution~~director, ofowns ~~chemical~~the ~~products~~vast ~~entail~~majority ~~risks~~of ~~under~~our ~~Environmental~~outstanding ~~Laws~~Common Stock. Accordingly, ~~many~~our ofshareholders ~~which~~will ~~provide~~be ~~for~~relying ~~substantial~~almost ~~remediation~~exclusively ~~costs~~on in the ~~event~~judgement of ~~discharges~~our board of ~~contaminants~~directors (“Board”) and Chief ~~fines~~Executive Officer and ~~sanctions~~any ~~for~~persons ~~violations.~~on ~~Violations~~whom ofthey ~~Environmental~~may ~~Laws~~rely ~~could~~with ~~result~~respect into ~~the~~a ~~imposition~~potential ofbusiness ~~substantial~~combination. ~~criminal~~In ~~fines~~order to develop and implement ~~penalties~~our ~~against~~business ~~the~~plan, ~~Company~~may ~~and~~in ~~their~~the ~~officers~~future ~~and~~hire ~~employees~~lawyers, inaccountants, ~~certain~~technical ~~circumstances.~~experts, ~~The~~appraisers, ~~costs~~or ~~associated~~other consultants to assist with ~~responding~~determining tothe ~~civil~~Company’s ordirection ~~criminal~~and ~~matters~~consummating ~~can~~any betransactions ~~substantial~~contemplated thereby. ~~Also,~~We ~~significant~~may ~~civil~~rely oron ~~criminal~~such ~~violations~~persons ~~could~~in making ~~adversely~~difficult ~~impact~~decisions in connection with the Company’s ~~marketing~~future ~~ability~~business inand ~~the~~prospects. ~~region~~The ~~served~~selection byof ~~the~~any ~~Company.~~such ~~Compliance~~persons ~~with~~will be ~~existing~~made by our Board, and ~~future~~any ~~Environmental~~expenses ~~Laws~~incurred, ~~may~~or ~~require~~decisions ~~significant~~made ~~capital~~based ~~expenditures~~on byany of the foregoing could prove to be adverse to the Company in hindsight, the result of which could be diminished value to our shareholders.

~~There~~Because ~~can~~our besearch nofor ~~assurance~~a ~~that~~business ~~past~~combination is ~~or future operations will~~ not ~~result~~presently inlimited ~~the~~to ~~Company~~a ~~incurring~~particular ~~material~~industry, ~~environmental~~sector ~~liabilities and costs~~ or ~~that~~any ~~compliance~~specific ~~with~~target ~~Environmental~~businesses, ~~Laws~~prospective investors will ~~not~~be ~~require~~unable ~~material~~to ~~capital expenditures by~~ evaluate the ~~Company,~~merits ~~each~~or risks of ~~which~~any ~~could~~particular ~~have~~target ~~a material adverse effect on the Company~~business’s ~~results of~~ operations ~~and~~until ~~financial~~such ~~condition.~~time ~~The~~as ~~Company~~they ~~knows~~are ofidentified no existing contamination sites where the Company supplies petrochemicals for their current customer locations. The title for the chemicals that we supply to our customer base passes from us to the customer upon delivery of the chemical to the customer location. We have insurance that covers accidental spillage and cleanup at our blending location and for transportation to the customer location; however, the customer is responsible for the integrity of the chemical once the chemical blend is delivered to the receiving point of the customerdisclosed.

~~The~~We are still determining the Company’s ~~intends~~business plan, and we may seek to ~~conduct~~complete ~~appropriate~~a ~~due~~business ~~diligence~~combination with ~~respect~~an operating entity in any number of industries or sectors. Because we have not yet entered into any letter of intent or agreement to ~~environmental~~acquire ~~matters~~a particular business, prospective investors currently have no basis to evaluate the possible merits or risks of any particular target business’s operations, results of operations, cash flows, liquidity, financial condition, prospects or other metrics or qualities they deem appropriate in ~~connection~~considering ~~with~~investing ~~future~~in ~~acquisitions~~the Company. Further, if we complete a business combination, we may be affected by numerous risks inherent in the operations of the business we acquire. For example, if we acquire a financially unstable business or an entity lacking an established operating history, we may be affected by the risks inherent in the business and operations of a new business or a development stage entity. Although our management intends to evaluate and weigh the merits and risks inherent in a particular target business and make a decision based on the Company and its shareholders’ interests, there can be no assurance that we will properly ascertain or assess all the ~~Company~~significant risks inherent in a target business, that we will have beadequate ~~able~~time to ~~identify~~complete due diligence or that we will ultimately acquire a viable business and generate material revenue therefrom. Furthermore, some of these risks may be ~~indemnified~~outside ~~for~~of ~~all~~our ~~potential~~control ~~environmental~~and ~~liabilities~~leave ~~relating~~us with no ability to ~~any~~reduce ~~acquired~~the likelihood that those risks will adversely impact a target business. ~~Although~~or mitigate any harm to the Company ~~has~~caused ~~obtained~~thereby. ~~insurance~~Should ~~and~~we ~~indemnities~~select ~~for~~a ~~certain~~course ~~contamination~~of ~~conditions~~action, ~~such~~or ~~insurance~~fail to select a course of action, that ultimately exposes us to unknown or unidentified risks, our business will be harmed and ~~indemnities~~you ~~are~~could ~~limited~~lose some or all of your investment.

~~Operating~~Past ~~hazards~~performance inby our ~~petrochemical~~management ~~business~~and ~~could~~their affiliates ~~have~~may anot ~~material~~be ~~adverse~~indicative ~~impact~~of onfuture ~~our~~performance ~~operations~~of ~~and~~an ~~financial~~investment ~~condition~~in us.

~~Our~~While ~~specialty~~our ~~chemicals~~Chief ~~operations~~Executive ~~are~~Officer ~~subject~~has toprior experience in advising businesses, his past performance, the ~~numerous~~performance ~~hazards~~of ~~associated~~other entities or persons with ~~the~~which ~~handling,~~he ~~transportation,~~is ~~blending~~involved, ~~storage,~~or ~~sale,~~the ~~ownership~~performance of ~~and~~any other ~~activities~~personnel ~~relating~~we tomay ~~chemicals.~~retain ~~These~~in ~~hazards~~the ~~include,~~future ~~but~~will ~~are~~ not ~~limited~~necessarily be an indication of either (i) that we will be able to, ~~storage~~locate a ~~tank~~suitable candidate for our initial business combination or ~~pipeline~~(ii) ~~leaks~~the ~~and~~future ~~ruptures,~~operating ~~explosions,~~results ~~fires,~~of ~~chemical~~the ~~spills,~~Company ~~discharges~~including with respect to any business combination we may consummate. You should not rely on the historical record of him or ~~releases~~any other of ~~toxic~~our ~~substances~~personnel or ~~gases,~~their affiliates’ ~~mechanical~~performance ~~failures,~~as ~~transportation~~indicative ~~accidents,~~of ~~any~~our offuture ~~which~~performance ~~could~~or ~~materially~~that ~~and~~an ~~adversely~~investment ~~affect~~in us will be profitable. In addition, an investment in the Company. ~~These~~is ~~hazards~~not ~~can~~an ~~cause~~investment ~~personal~~in ~~injury~~any ~~and~~entities ~~loss~~affiliated ofwith ~~life,~~our ~~severe~~management ~~damage~~or other personnel. While management intends to orendeavor ~~destruction~~to oflocate ~~property~~a viable business opportunity and ~~equipment~~generate shareholder value, ~~environmental~~there ~~damage~~can ~~and~~be ~~may~~no ~~result~~assurance inthat ~~suspension~~we ofwill ~~operations~~succeed in this endeavor.

The Company will maintain insurance coverage in the amounts and against the risks it believes are in accordance with industry practice, but this insurance will not cover all types or amounts of liabilities. The Company currently has spillage, transportation, and handling insurance. No assurance can be given that this insurance will be adequate to cover all losses or liabilities the Company may incur in its operations or that the Company will be able to maintain insurance of the types or at levels that are adequate or at reasonable rates.6

6We may seek business combination opportunities in industries or sectors that are outside of our management’s area of expertise.

~~Any~~We ~~change~~will consider a business combination outside of our management’s area of expertise if a business combination candidate is presented to ~~government~~us ~~regulation/administrative~~and ~~practices~~we ~~may~~determine ~~have~~that such candidate offers an attractive opportunity for the Company. Although management intends to endeavor to evaluate the risks inherent in any particular business combination candidate, we cannot assure you that we will adequately ascertain or assess all the significant risks, or that we will accurately determine the actual value of a ~~negative~~prospective ~~impact~~operating onentity to acquire. In the event we elect to pursue an acquisition outside of the areas of our management’s expertise, our management’s ability to ~~operate~~evaluate and/ make decisions on behalf of the Company may be limited, or we may make material expenditures on additional personnel or consultants to assist management in the Company’s operations. Investors should be aware that the information contained herein regarding the areas of our ~~profitability~~management’s expertise will not necessarily be relevant to an understanding of the business that we ultimately elect to acquire. As a result, our management may not be able to adequately ascertain or assess all the significant risks or strategic opportunities that may arise. Accordingly, any shareholders in the Company following a business combination could suffer a reduction in the value of their shares, and any resulting loss will likely not be recoverable.

~~The~~We ~~laws, regulations, policies or current administrative practices of any government body, organization or regulatory agency in the United States or any other jurisdiction,~~ may beattempt ~~changed,~~to ~~applied~~complete ora ~~interpreted~~business incombination with a ~~manner~~private ~~which~~target ~~will~~company ~~fundamentally~~about ~~alter~~which ~~the~~little ~~ability~~information ofis ~~the~~available, ~~Company~~and tosuch ~~carry~~target onentity ~~our~~may ~~business.~~not ~~The~~generate ~~continued~~revenue ~~media~~as ~~attention~~expected or ~~toward~~otherwise ~~the use of hydraulic fracturing of oil & gas wells~~ by ~~our~~compatible ~~customers~~with ~~could~~us ~~adversely~~as ~~impact governmental regulations in the states in which we provide our fracking chemicals and have a negative impact on our business~~expected.

~~The~~In ~~actions,~~pursuing ~~policies~~our orsearch ~~regulations,~~for ora ~~changes~~business ~~thereto~~to acquire, we ofwill ~~any~~likely ~~government~~seek ~~body~~to orcomplete ~~regulatory~~a ~~agency,~~business orcombination ~~other~~with ~~special~~a ~~interest~~privately ~~groups~~held company. Very little public information generally exists about private companies, ~~may~~and ~~have~~the only information available to us prior to making a ~~detrimental~~decision ~~effect~~may onbe from documents and information provided directly to us by the target company in connection with the transaction. ~~Any~~Such documents or ~~all~~information ofor ~~these~~the ~~situations~~conclusions we draw therefrom could prove to be inaccurate or misleading. As such, we may ~~have~~be required to make our decision on whether to pursue a ~~negative~~potential ~~impact~~business combination based on limited, incomplete, or faulty information, which may result in our ~~ability~~subsequent tooperations ~~operate~~generating ~~and/or~~less revenue than expected, which could materially harm our ~~profitably~~financial condition and results of operations.

WeOur ability to assess the management of a prospective target business may be ~~unable~~limited toand, ~~retain~~as ~~key~~a ~~personnel~~result, ~~and~~we ~~there~~may isacquire noa ~~guarantee~~target ~~that~~business wewhose ~~could~~management ~~find~~does not have the skills, qualifications, or abilities to enable a ~~comparable~~seamless ~~replacement~~transition, which could, in turn, negatively impact our results of operations.

WeWhen ~~may~~evaluating bethe ~~unable~~desirability toof ~~retain~~a ~~key~~potential business ~~employees~~combination, orour ~~consultants~~ability orto ~~recruit~~assess ~~additional~~the ~~qualified~~target ~~personnel.~~business’s ~~Our~~management may be limited ~~personnel~~due ~~means~~to ~~that~~a welack ~~would~~of betime, ~~required~~resources, toor information. ~~spend~~Our ~~significant~~management’s ~~sums~~assessment of ~~money~~the tocapabilities ~~locate~~of ~~and~~the ~~train~~target’s ~~new~~management, ~~employees~~therefore, inmay ~~the~~prove ~~event~~to ~~any~~be ofincorrect and ~~our~~such ~~employees~~management ~~resign~~may orlack ~~terminate~~the ~~their~~skills, ~~employment~~qualifications ~~with~~or usabilities ~~for~~expected. ~~any~~Further, ~~reason.~~in Wemost ~~are~~cases ~~largely~~the ~~dependent~~target’s onmanagement ~~the~~may be ~~continued~~expected ~~service~~to ofwant ~~our~~to ~~President~~manage us and ~~CEO,~~replace ~~David~~our ~~Dugas~~Chief Executive Officer. WeShould ~~may~~the target’s management not ~~have~~possess the ~~financial~~skills, qualifications, ~~resources~~or abilities necessary to ~~hire~~manage a ~~replacement~~public ifcompany weor ~~lost~~assist with their former entity’s merger or combination into ours, the ~~services~~operations and profitability of ~~Mr.~~the ~~Dugas.~~post-acquisition ~~The~~business ~~loss~~may ofbe ~~service~~negatively ofimpacted, ~~Mr.~~and ~~Dugas~~our shareholders could ~~therefore~~suffer a ~~significantly~~reduction ~~and~~in ~~adversely~~the ~~affect~~value ~~our~~of ~~operations~~their shares.

~~The~~Any ~~specialty~~business ~~chemicals~~we ~~business~~acquire iswill ~~highly~~likely ~~competitive~~lack diversity of operations or geographical reach, and ~~the~~in ~~competition~~such ~~may~~case ~~adversely~~we ~~affect~~will ~~our~~be ~~results~~subject ofto ~~operations~~risks associated with dependence on a single industry or region.

Our ~~business~~search ~~faces~~for ~~significant~~a ~~competition~~business ~~from~~will ~~major~~likely ~~international~~be ~~producers~~focused on asentities ~~well~~with asa ~~smaller~~single ~~regional~~or ~~competitors.~~limited ~~Our~~business ~~most~~activity ~~significant~~and/or ~~competitors~~that ~~include~~operate ~~major~~in ~~chemicals~~a ~~and~~limited ~~materials~~geographic ~~manufacturers~~area. ~~and~~While ~~diversified~~larger companies, ahave ~~number~~the ability ofto ~~which~~manage ~~have~~their ~~revenues~~risk by diversifying their operations among different industries and ~~capital~~regions, ~~resources~~smaller ~~far~~companies ~~exceeding~~such as ours. ~~Substitute~~and the ~~products~~entities ~~also~~we ~~exist~~anticipate reviewing for ~~many~~a potential business combination generally lack diversification, in terms of ~~our~~both ~~products~~the nature and geographic scope of their business. ~~Therefore~~As a result, we ~~face~~will ~~substantial~~likely ~~risk~~be ~~that~~impacted ~~certain~~more ~~events,~~acutely ~~such~~by asrisks ~~new~~affecting ~~product~~the ~~development~~industry byor ~~our~~the ~~competitors,~~region in ~~changing~~which ~~customer~~we ~~needs,~~operate ~~production~~than ~~advances~~we ~~for~~would ~~competing~~if ~~products,~~our ~~price~~business ~~changes~~were inmore ~~raw~~diversified. ~~materials~~In addition to general economic risks, we could ~~result~~be inexposed ~~declining~~to natural ~~demand~~disasters, ~~for~~civil ~~our~~unrest, ~~products~~technological asadvances, ~~our~~and ~~customers~~other ~~switch~~uncontrollable todevelopments ~~substitute~~that ~~products~~will orthreaten ~~undertake~~our ~~manufacturing~~viability ofif ~~such~~and to ~~products~~the onextent ~~their~~our ~~own.~~future Ifoperations we are ~~unable~~limited to ~~develop~~a ~~and~~single ~~produce~~industry or ~~market~~region. ~~our~~If ~~products~~we todo ~~effectively~~not ~~compete~~diversify ~~against~~ our ~~competitors~~operations, our financial condition and results of operations ~~may~~will ~~materially~~be ~~suffer~~at risk.

WeChanges ~~have~~in ~~certain~~laws ~~concentrations~~or ~~within~~regulations, ~~our~~or ~~customer~~a ~~base,~~failure to ~~and~~comply with the ~~loss~~laws ~~certain~~and ~~customers~~regulations ~~could~~applicable ~~have~~to aus, ~~material~~may ~~adverse~~adversely ~~impact~~affect on our business, ability to negotiate and complete a business combination, and results of operations.

AsWe ofare ~~December~~subject 31to laws and regulations enacted by federal, ~~2014~~state, weand ~~had~~local agovernments. ~~total~~In ofaddition 83to ~~customers~~SEC regulations, ~~four~~any ofbusiness ~~which~~we ~~were~~acquire ~~major~~in ~~customers~~the ~~that~~future ~~together~~may ~~accounted~~be ~~for~~subject ~~68%~~to ofsubstantial legal ~~accounts~~or ~~receivable~~regulatory oversight and ~~59%~~restrictions, ofwhich ~~the~~could ~~total~~hinder ~~revenues~~our ~~earned~~growth ~~for~~and ~~the~~expend ~~year~~material ~~ended~~amounts ~~December~~on ~~31, 2014~~compliance. ~~The~~Compliance ~~loss~~with, and monitoring of, ~~one~~applicable orlaws ~~more~~and ofregulations ~~our~~may ~~major~~be ~~customers~~difficult, ~~would~~time ~~have~~consuming aand ~~serious~~costly. ~~material~~Those ~~negative~~laws ~~economic~~and ~~impact~~regulations onand ~~the~~their ~~Company~~interpretation and application by courts and ~~our~~administrative ~~ability~~judges may also change from time to ~~continue.~~time, ~~There~~and isany nosuch ~~guarantee~~changes ~~that~~could webe unfavorable to us and could ~~replace~~have ~~one~~a ofmaterial ~~these~~adverse ~~customers~~effect on our business, investments, and ifresults weof ~~were~~operations. ~~able~~In addition, a failure to ~~replace~~comply ~~them~~with applicable laws or regulations, ~~there~~as isinterpreted noand ~~guarantee~~applied, ~~that~~could ~~the~~result ~~revenues~~in ~~would~~material bedefense ~~equal~~or remedial costs and/or damages have a material adverse effect on our financial condition.

~~Need for additional employees~~7

~~The~~Risks ~~Company’s~~Related ~~future success also depends upon its continuing ability~~ to ~~attract~~Our ~~and~~Common retain highly qualified personnel. Expansion of the Company’s business and the management and operation of the Company will require additional managers and employees with industry experience, and the success of the Company will be highly dependent on the Company’s ability to attract and retain skilled management personnel and other employees. Competition for such personnel is intense. There can be no assurance that the Company will be able to attract or retain highly qualified personnel.Stock

7Due to factors beyond our control, our stock price may be volatile.

~~Competition~~There ~~for~~is ~~skilled~~currently ~~personnel~~a inlimited ~~the~~market ~~oil~~for ~~and~~our ~~gas~~Common Stock, ~~services~~and ~~industry~~there iscan ~~significant.~~be ~~This~~no ~~competition~~guarantee ~~may~~that ~~make~~an itactive ~~more~~market ~~difficult~~for ~~and~~our ~~expensive~~Common toStock ~~attract~~will develop, ~~hire~~even ~~and~~if ~~retain~~we ~~qualified~~are ~~managers~~successful ~~and~~in ~~employees~~consummating a business combination. ~~The~~Recently, ~~Company’s~~the ~~inability~~price toof ~~attract~~our ~~skilled~~Common ~~management~~Stock ~~personnel~~has ~~and~~been ~~other~~volatile ~~employees~~for asno ~~needed~~reason. ~~could~~Further, ~~have~~even aif ~~material~~an ~~adverse~~active ~~effect~~market onfor our ~~the~~Common ~~Company’s~~Stock ~~business~~develops, ~~operating~~it ~~results~~will ~~and~~likely ~~financial~~be ~~condition.~~subject ~~The~~to ~~Company’s~~by ~~arrangement~~significant ~~with~~price ~~its~~volatility ~~current~~when ~~employees~~compared isto atmore ~~will,~~seasoned ~~meaning~~issuers. ~~its~~We ~~employees~~expect that ~~may~~the ~~voluntarily~~price ~~terminate~~of ~~their~~our ~~employment~~Common atStock ~~any~~will ~~time.~~continue ~~The~~to ~~Company~~be ~~anticipates~~more ~~that~~volatile ~~the~~than ~~use~~more ofseasoned ~~stock~~issuers ~~options,~~for ~~restricted~~the ~~stock~~foreseeable ~~grants,~~future. ~~stock~~Fluctuations in ~~appreciation~~the ~~rights,~~price ~~and~~of ~~phantom~~our ~~stock~~Common ~~awards~~Stock ~~will~~can be ~~valuable~~based inon ~~attracting~~various ~~and~~factors ~~retaining~~in ~~qualified~~addition ~~personnel.~~to ~~However,~~those ~~the~~otherwise ~~effects~~described ofin ~~such~~this ~~plan~~Report, ~~cannot be certain.~~including:

At● ~~the~~General ~~current~~speculative ~~time, our consolidated operations are not profitable.~~fever;

~~There~~● isA noprospective ~~assurance~~business ~~that~~combination we will operate profitably or will generate positive cash flow in the future. In addition, our operating results in the future may be subject to significant fluctuations due to many factors not within our control, such as the general economic cycle, the market price of oil and ~~gas and exploration and development costs. There is no assurance that actual cash requirements will not exceed our estimates. In particular, additional capital may be required in~~ the ~~event~~terms ~~that costs increase beyond our expectations, such as cost of products sold or research~~ and ~~development~~conditions ~~cost, or we encounter greater costs associated with general and administrative expenses or offering costs.~~ thereof;

We● ~~are~~The ~~dependent~~operating onperformance ~~outside~~of ~~capital to continuously fund~~ any ~~cash~~business ~~flow~~we ~~deficits~~acquire, ~~and~~including ~~expect~~any ~~this~~failure to ~~continue~~achieve ~~until~~material werevenues ~~are profitable.~~therefrom;

~~Until~~● weThe ~~can~~performance ~~reach a significant level~~ of ~~profitability, we will depend almost exclusively on outside capital to pay for the continued growth of~~ our ~~business.~~competitors Such outside capital may include the sale of additional stock and/or commercial borrowing. Capital may not continue to be available if necessary to meet our continuing operational needs or, if the capital is available, that it will be on terms acceptable to us. Any future capital investments could dilute or otherwise materially and adversely affect the holdings or rights of our existing shareholders. In addition, new equity or convertible debt securities issued by us to obtain financing could have rights, preferences and privileges senior to our common stock. The issuance of additional equity securities by us would result in ~~a significant dilution in~~ the ~~equity interests of our current stockholders. Obtaining commercial loans~~marketplace, ~~assuming~~both ~~those~~pre- ~~loans would be available, will increase our liabilities~~ and ~~future cash commitments. We cannot give you any assurance that any additional financing will be available to us, or if available, will be on terms favorable to us.~~post-combination;

If● weThe ~~are~~public’s ~~unable~~reaction to ~~obtain~~our ~~financing~~press inreleases, ~~the~~SEC ~~amounts and on terms deemed acceptable to us~~filings, wewebsite ~~may~~content beand ~~unable~~other topublic ~~continue~~announcements ~~our business~~ and ~~as a result may be required to scale back or cease operations of our business, the result of which would be that our stockholders would lose some or all of their investment.~~information;

A● ~~decline~~Changes in ~~the~~earnings ~~price~~estimates of ~~our~~any ~~common~~business ~~stock~~that ~~could~~we ~~affect~~acquire ~~our~~or ~~ability~~recommendations toby ~~raise~~any ~~further~~research ~~working~~analysts ~~capital~~who ~~and~~may ~~adversely~~follow ~~impact~~us ~~our~~or ~~operations.~~other companies in the industry of a business that we acquire;

A● ~~prolonged~~Variations ~~decline~~ in ~~the~~general ~~price~~economic ofconditions, ~~our~~including ~~common~~as ~~stock~~may ~~could~~be ~~result~~caused inby auncontrollable ~~reduction~~events insuch as the ~~liquidity~~COVID-19 ofpandemic ~~our common stock~~ and ~~a reduction in our ability to raise capital. Because our operations have been primarily financed through~~ the ~~sale~~resulting ~~of equity securities, a~~ decline in the price of our common stock could be especially detrimental to our liquidity and our continued operations. Any reduction in our ability to raise equity capital in the future would force us to reallocate funds from other planned uses and would have a significant negative effect on our business plans and operations, including our ability to continue our current operations. If our stock price declines, we may not be able to raise additional capital or generate funds from operations sufficient to meet our obligations.economy;

We● ~~may~~The ~~never~~public ~~pay~~disclosure of the terms of any ~~dividends~~financing towe ~~shareholders.~~disclose in the future;

We● ~~have~~The ~~never~~number ~~declared~~of ~~nor~~shares ~~paid~~of ~~any cash dividends or distributions on~~ our ~~capital~~Common ~~stock.~~Stock Wethat ~~currently~~are ~~intend~~publicly totraded ~~retain our future earnings, if any, to support operations and to finance expansion and therefore we do not anticipate paying any cash dividends on our common stock~~ in the ~~foreseeable~~ future.;

8● Actions of our existing shareholders, including sales of Common Stock by our then directors and then executive officers or by significant investors; and

● The ~~declaration,~~employment ~~payment~~or ~~and~~termination ~~amount~~ of ~~any~~key future dividends will be made at the discretion of the board of directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors as the board of directors considers relevantpersonnel. ~~There is no assurance that future dividends will be paid, and, if dividends are paid, there is no assurance with respect to the amount of any such dividend.~~

~~RISKS~~Many ~~RELATED~~of TOthese ~~OUR~~factors ~~COMMON~~are ~~STOCK~~beyond our control and may decrease the market price of our Common Stock, regardless of whether we can consummate a business combination and of our current or subsequent operating performance and financial condition. In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been instituted. A securities class action suit against us could result in substantial costs and divert our management’s time and attention, which would otherwise be used to benefit our business.

~~Our~~Because ~~stock~~trading isin ~~a penny stock. Trading of~~ our ~~stock~~Common ~~may~~Stock beis ~~restricted~~so bylimited, investors ~~the~~who ~~Securities~~purchase ~~and~~our ~~Exchange~~Common ~~Commission’s~~Stock ~~penny stock regulations that~~ may ~~limit~~depress athe ~~stockholder’s~~market ~~ability~~if tothey ~~buy and~~ sell ~~our~~Common ~~stock~~Stock.

Our ~~stock~~Common isStock atrades ~~penny~~on stock. The Securities and Exchange Commission has adopted Rule 3a51-1, which generally defines “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the ~~penny~~OTC ~~stock~~Pink ~~rules~~Market, ~~including Rule 15g-9 promulgated under~~ the ~~Securities~~successor ~~Act of 1934, which impose additional sales practice requirements on broker-dealers who sell~~ to ~~persons~~the ~~other~~pink ~~than established customers and “accredited investors”~~sheets. The ~~term~~OTC ~~“accredited~~Pink ~~investor”~~Market ~~refers~~ generally tois ~~institutions with assets in excess of $5~~illiquid,~~000,000~~ or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the Securities and ~~Exchange~~most ~~Commission which provides information about penny~~ stocks ~~and~~traded ~~the~~there ~~nature~~are ~~and level~~ of ~~risks~~companies in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that ~~prior~~are ~~to a transaction in a penny stock~~ not required otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to ~~the~~file ~~transaction.~~reports ~~These~~with ~~disclosure requirements may have~~ the ~~effect~~SEC ofunder ~~reducing~~ the ~~level~~Exchange ~~of trading activity in the secondary market for the stock that is subject to these penny stock rules~~Act. ~~Consequently,~~Our ~~these~~Common ~~penny~~Stock ~~stock~~itself ~~rules~~infrequently ~~may affect the ability of broker-dealers to trade our securities~~trades. ~~We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.~~

The ~~Financial~~market ~~Industry~~price ~~Regulatory~~of ~~Authority,~~our orCommon ~~FINRA,~~Stock ~~has~~may ~~adopted~~decline if ~~sales~~a ~~practice~~substantial ~~requirements~~number ~~that~~of ~~may~~shares ~~also~~of ~~limit~~our aCommon ~~stockholder’s~~Stock ~~ability~~are tosold ~~buy~~at ~~and~~once ~~sell~~or ~~our~~in ~~stock~~large blocks.

InPresently ~~addition to~~ the ~~“penny~~market ~~stock”~~for ~~rules~~our ~~described~~Common ~~above,~~Stock ~~FINRA~~is ~~has~~limited. If ~~adopted rules that require that in recommending~~ an ~~investment~~active tomarket afor ~~customer,~~our ashares ~~broker-dealer~~develops ~~must~~in ~~have reasonable grounds for believing that~~ the ~~investment~~future, issome ~~suitable~~or ~~for~~all ~~that~~of ~~customer.~~our ~~Prior~~shareholders tomay ~~recommending~~sell ~~speculative low priced securities to~~ their ~~non-institutional~~shares ~~customers,~~of ~~broker-dealers~~our ~~must~~Common ~~make~~Stock ~~reasonable~~which may ~~efforts~~depress ~~to obtain information about~~ the ~~customer’s~~market ~~financial~~price. ~~status,~~Any ~~tax~~sale ~~status,~~of ~~investment~~a ~~objectives~~substantial ~~and~~number ~~other information. Under interpretations~~ of these ~~rules,~~shares ~~FINRA~~in ~~believes~~the ~~that~~public ~~there~~market, isor athe ~~high~~perception ~~probability~~ that ~~speculative~~such ~~low~~a ~~priced~~sale could ~~securities~~occur, ~~will~~could ~~not~~cause bethe ~~suitable~~market ~~for~~price atof ~~least~~our ~~some~~Common ~~customers.~~Stock ~~FINRA requirements make it more difficult for broker-dealers~~ to ~~recommend that their customers buy our common stock~~decline, which ~~may~~could ~~limit~~reduce ~~your~~the ~~ability~~value toof ~~buy and sell our stock and have an adverse effect on~~ the ~~market~~shares ~~for~~held by our ~~shares~~other shareholders.

~~Our~~Future ~~common~~issuance ~~stock~~of our ~~may~~Common beStock ~~negatively~~could ~~impacted~~dilute bythe ~~factors~~interests ~~that~~of ~~are~~our ~~unrelated~~existing toshareholders, ~~our~~particularly ~~operations~~in connection with an acquisition and any resulting financing.

~~Our~~We ~~common~~may ~~stock~~issue ~~currently~~additional ~~trades~~shares ~~on a limited basis on the OTC Venture Stage Marketplace (OTCQB). Trading~~ of our ~~stock~~Common ~~through~~Stock in the ~~OTCQB is highly volatile~~future. ~~There~~The isissuance noof ~~assurance that~~ a ~~sufficient~~substantial ~~market~~amount ~~will~~of ~~develop in~~ our ~~stock,~~Common inStock ~~which case it~~ could besubstantially ~~difficult~~dilute ~~for~~the ~~shareholders~~interests toof ~~sell~~our ~~their stock~~shareholders. In ~~The~~addition, ~~market~~the ~~price~~sale of ~~our common stock could fluctuate substantially due to~~ a ~~variety~~substantial ofamount ~~factors, including market perception~~ of ~~our~~Common ~~ability~~Stock toin ~~achieve~~the ~~our~~public ~~planned growth~~market, ~~quarterly~~either ~~operating results of our competitors, trading volume~~ in ~~our~~the ~~common~~initial ~~stock,~~issuance ~~changes~~or in ~~general~~a ~~conditions~~subsequent resale inby the ~~economy~~target ~~and~~company ~~the~~in ~~financial~~a ~~markets~~business orcombination ~~other~~which ~~developments~~received ~~affecting~~ our ~~competitors~~Common orStock ~~us.~~as Inconsideration ~~addition,~~or ~~the~~by ~~stock~~investors ~~market~~who ishas ~~subject~~previously acquired tosuch ~~extreme~~Common ~~price~~Stock ~~and~~could ~~volume~~have ~~fluctuations.~~an ~~This~~adverse ~~volatility has had a significant~~ effect on the market price of ~~securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on~~ our ~~common~~Common ~~stock~~Stock.

~~The~~Due ~~market~~to ~~for~~recent ~~penny~~changes ~~stocks~~to ~~has~~Rule ~~experienced~~15c2-11 ~~numerous~~under the ~~frauds~~Securities ~~and~~Exchange ~~abuses~~Act ~~that~~of ~~could~~1934, ~~inadvertently~~our ~~and~~Common ~~adversely~~Stock ~~impact~~may ~~investors~~become insubject ~~our~~to limitations or reductions on stock price, liquidity, or volume.

On September 16, 2020, the SEC adopted amendments to Rule 15c2-11 under the Securities Exchange Act of 1934 (the “Exchange Act”). This Rule applies to broker-dealers who quote securities listed on over-the-counter markets such as our Common Stock. The ~~Company~~Rule isas ~~aware~~amended ~~that~~prohibits ~~that~~broker-dealers from publishing quotations on OTC markets for an issuer’s securities unless they are based on current publicly available information about the ~~market~~issuer. When it becomes effective, the amended Rule will also limit the Rule’s “piggyback” exception, which allows broker-dealers to publish quotations for ~~penny~~a ~~stocks~~security ~~has~~in ~~suffered~~reliance ~~from~~on ~~patterns~~the quotations of ~~fraud~~a ~~and~~broker-dealer ~~abuse~~that initially performed the information review required by the Rule, to issuers with current publicly available information or issuers that are up-to-date in their Exchange Act reports. As ~~Such~~of ~~patterns~~this ~~include:~~date, we are uncertain as what actual effect the Rule may have on us.

●The ~~Control~~Rule ofchanges could harm the liquidity and/or market ~~for~~price ~~the~~of ~~security~~our Common Stock by ~~one~~either preventing our shares from being quoted or driving up our costs of compliance. Because we are a ~~few~~voluntary ~~broker-dealers~~filer ~~that~~under Section 15(d) of the Exchange Act and not a public reporting company, the practical impact of these changes is to require us to maintain a level of periodic disclosure we are ~~often~~not ~~related~~presently required to ~~the~~maintain, ~~promoter~~which would cause us to incur material additional expenses. Further, if we cannot or ~~issuer;~~do ●not ~~Manipulation~~provide or maintain current public information about our company, our stockholders may face difficulties in selling their shares of our Common Stock at desired prices, ~~through~~quantities, ~~prearranged~~or ~~matching~~times, ofor ~~purchases~~at ~~and~~all, ~~sales~~as ~~and~~a ~~false~~result ~~and~~of ~~misleading~~the amendments ~~press~~to ~~releases;~~the Rule.

●ITEM ~~“Boiler~~1B. ~~room”~~UNRESOLVED ~~practices~~STAFF ~~involving high pressure sales tactics and unrealistic price projections by sales persons; ● Excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and~~COMMENTS.

●Not Wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the inevitable collapse of those prices with consequent investor lossesapplicable.

~~Because~~ITEM we are not subject to compliance with rules requiring the adoption of certain corporate governance measures, our stockholders have limited protection against interested director transactions, conflicts of interest and similar matters2. PROPERTIES

The ~~Sarbanes-Oxley~~Company’s ~~Act~~principal ofbusiness ~~2002,~~and ascorporate ~~well~~address asis ~~rule~~1185 Avenue ~~changes~~of ~~proposed and enacted by~~ the ~~SEC~~Americas, ~~the~~3rd Floor New York ~~and American Stock Exchanges and the NASDAQ Stock Market~~, ~~requires~~New ~~the~~York ~~implementation of various measures relating to corporate governance~~10036. These measures are designed to enhance the integrity of corporate management and the securities markets and apply to securities that are listed on those exchanges or the NASDAQ Stock Market. Because we are not presently required to comply with many of the corporate governance provisions and because we chose to avoid incurring the substantial additional costs associated with such compliance any sooner than legally required, we have not yet adopted these measures.

AsITEM ~~of December 31, 2014 and 2013, the Company did not have an independent directors~~3. WeLEGAL do not currently have independent audit or compensation committees. Currently, our bylaws only allow for a total of three directors. As a result, these directors have the ability, among other things, to determine their own level of compensation. Until we comply with such corporate governance measures, regardless of whether such compliance is required, the absence of such standards of corporate governance may leave our stockholders without protections against interested director transactions, conflicts of interest, if any, and similar matters and investors may be reluctant to provide us with funds necessary to expand our operations.PROCEEDINGS

We ~~intend~~are tonot ~~comply~~currently ~~with~~involved ~~all~~in ~~corporate~~any ~~governance~~legal ~~measures~~proceedings ~~relating to director independence as~~ and ~~when required. However,~~ we ~~may~~are ~~find~~not aware ~~it very difficult or be unable to attract and retain qualified officers, directors and members~~ of ~~board~~any ~~committees~~pending required to provide for our effective management as a result of Sarbanes-Oxley Act of 2002. The enactment of the Sarbanes-Oxley Act of 2002 has resulted in a series of rules and regulations by the SEC that increase responsibilities and liabilities of directors and executive officers. The perceived increased personal risk associated with these recent changes may make it more costly or ~~deter~~potential ~~qualified~~legal ~~individuals from accepting these roles~~actions.

~~For~~ITEM ~~all~~4. ofMINE ~~the~~SAFETY ~~foregoing reasons and others set forth herein, an investment in our securities in any market that may develop in the future involves a high degree of risk.~~DISCLOSURES

~~ITEM~~Not ~~1B - UNRESOLVED STAFF COMMENTS~~applicable.

~~There are no unresolved staff comments.~~9

10PART II

WeOur ~~currently~~Common ~~own~~Stock nois ~~real~~not listed ~~property~~on any securities exchange and ~~lease~~is quoted on the OTC Pink Market under the symbol “ESPIQ” because our ~~office~~Common ~~space~~Stock is not listed on a securities exchange and ~~production~~its ~~facilities~~quotations on OTC Pink are limited and sporadic. There is currently no established public trading market for our Common Stock.

~~Our~~The ~~principal~~following ~~executive~~table ~~offices~~reflects the ~~are~~high ~~located~~and atlow ~~1003~~closing ~~South~~sales ~~Hugh~~information ~~Wallis~~for ~~Road~~our ~~Suite~~Common ~~G-1~~Stock ~~Lafayette,~~for ~~Louisiana~~each ~~70508.~~fiscal ~~Our~~quarter ~~telephone~~during ~~number~~the isfiscal ~~(832)~~years ~~342-9131.~~ended ~~Currently,~~December ~~we service our customers out of four district offices~~31, ~~which are all under lease. We have long-term leases for various district offices in Center Texas~~ 2020, and ~~Rayne~~December 31, ~~Louisiana~~2020. ~~These~~This ~~leases~~information ~~have~~was ~~remaining~~obtained ~~terms~~ from ~~January~~OTC ~~2018~~Pink toand ~~June~~reflects ~~2023~~inter-dealer ~~with~~prices ~~monthly~~without ~~rent~~retail ~~ranging from $1~~mark-up,~~500~~ ~~to $8~~mark-down,~~750,~~ or ~~with~~commission anand ~~aggregate~~may ~~monthly~~not ~~rent~~necessarily ofrepresent ~~$14,850~~actual transactions.

On June 1, 2013 the Company entered into a ten-year lease requiring monthly payment of $8,750 for our primary production facility in Rayne, Louisiana. The Company has the option to purchase the property for five years commencing one year after lease execution. The purchase option price will be for $100,000 above the lessor’s full cost of ownership for the first two years of the option, and increase by $50,000 per year for the third through fifth year of the option term.

	COMMON STOCK MARKET PRICE
	HIGH		LOW
FISCAL YEAR ENDED DECEMBER 31, 2020:
First Quarter	$	0.0038	$	0.0004
Second Quarter	$	0.0009	$	0.0002
Third Quarter	$	0.0045	$	0.0002
Fourth Quarter	$	0.0009	$	0.0002

On January 26, 2015 the Company entered into a three-year lease requiring monthly payment of $1,500 for our 4,000 square foot facility in Center, Texas.

	COMMON STOCK MARKET PRICE
	HIGH		LOW
FISCAL YEAR ENDED DECEMBER 31, 2019:
First Quarter	$	0.0010	$	0.0005
Second Quarter	$	0.0017	$	0.0005
Third Quarter	$	0.0014	$	0.0006
Fourth Quarter	$	0.0009	$	0.0005

On August 15, 2012 the Company entered into a five-year lease requiring a monthly payment ranging from $11,083 to $11,775 for our office in The Woodlands, Texas. On June 7, 2013 the Company subleased the Company’s Houston, Texas office, improvements and certain equipment to a non-related third party for monthly payments of $12,939. The sublease became effective July 1, 2013, with the term of the sublease coinciding with the original lease by the Company. The Company determined the remaining lease cost plus amortization and depreciation on the remaining leasehold improvements and equipment exceeded the sublease income by $274,555 and reflected a loss on disposal.Holders

~~ITEM~~As 3of -June ~~LEGAL~~2, ~~PROCEEDINGS~~there were 239 shareholders of record of the Company’s Common Stock based upon the records of the shareholders provided by the Company’s transfer agent. The Company’s transfer agent is VStock Transfer, 18 Lafayette Place Woodmere, NY 11598 - Phone: 212.828.8436

~~Daniel A. Spencer v. ESP Advanced Technologies, Inc.~~Dividends

~~The~~We ~~District~~have ~~Court~~never of Caddo Parish, Louisiana entered a default judgment in favor of Daniel Spencer and against ESP Advanced Technologies, Inc. on October 17, 2013 for $3,500,000, together with future interest from October 14, 2013, until paid, ator adeclared ~~rate~~any ofdividends ~~20% per annum for default after service. All of the operations of ESP Advanced Technologies, Inc. were discontinued~~ on our ~~June~~Common ~~11,~~Stock ~~2013. The Company believes this judgment is without merit~~ and ~~will~~do ~~vigorously pursue post-judgment remedies to set aside the judgment and have it annulled under Louisiana law. Management does~~ not ~~consider~~anticipate ~~the~~paying ~~potential~~cash ~~for~~dividends ~~loss~~in ~~to be probable. Accordingly,~~ the ~~judgment~~foreseeable ~~amount was not accrued~~future.

~~ESP~~Securities ~~Petrochemicals,~~Authorized ~~Inc.~~For v.Issuance ~~Shane~~Under ~~Cottrell,~~Equity ~~Platinum~~Compensation ~~Chemicals, LLC, Ladd Naquin, Joe Lauer, Patrick Williams, Ralph McClelland and Ronald Walling~~Plans

OnWe ~~March~~currently 2,do 2012, the Company filed a trade secret infringement lawsuit to protect its rights against a former employee, a competitor and officers of the competitor. On November 21, 2012, an Agreed Final Judgment was entered in the lawsuit against the Defendants. Under the terms of the Agreed Final Judgment, the Defendants cannot offer or sell any chemical product or related services to a number of entities or in conjunction with any operations within designated Texas Railroad Commission districts for specified periods of time as long as ESP Petrochemicals is in conformance with the terms of the Agreed Final Judgment. The name of the entities, the lists of designated districts and the specific time periods are delineated in the Agreed Final Judgment. Additionally, the Defendants are not tohave ~~solicit or recruit~~ any ~~ESP~~equity ~~Petrochemical~~compensation employees, they must turn over any “ESP Information” (as that term is described in the Agreed Final Judgment) and they cannot directly or indirectly, offer, market, advertise, promote or otherwise describe in any way a product to a customer, prospective customer or third party, as being derived from ESP Petrochemical formula or an equivalentplans.

11Unregistered Sales of Equity Securities

~~Alfredo~~We ~~Ledesma~~have ~~and~~previously ~~Turf~~disclosed ~~Chemistry,~~all ~~Inc.~~sales v.of ~~ESP~~securities without ~~Resources,~~registration ~~Inc.,~~under ~~ESP~~the ~~Petrochemicals,~~Securities ~~Inc.and~~Act ~~Gerard~~of ~~Allen Primeaux~~1933.

OnITEM ~~June 16, 2011, Alfredo Ledesma and Turf Chemistry, Inc~~6. ~~filed~~SELECTED ~~their~~FINANCIAL original Petition against ESP Resources, Inc., ESP Petrochemicals, Inc. and Gerard Allen Primeaux in the District Court, 93rd Judicial District, Hidalgo County, Texas. On August 19, 2011, ESP Resources, Inc. filed its Original Answer to the Original Petition. On January 23, 2012, Alfredo Ledesma and Turf Chemistry, Inc. filed their First Amended Original Petition. On April 11, 2012, Gerard Primeaux filed his Original Answer. On May 10, 2012, Alfredo Ledesma and Turf Chemistry, Inc. filed their Second Amended Original Petition. On January 17, 2014, Alfredo Ledesma and Turf Chemistry, Inc. filed their Third Amended Original Petition. The Petition alleged that ESP had breached, by failing to satisfy the terms of the agreement and pay the agreed upon amounts, the letter of intent to enter into an Asset Purchase Agreement between ESP and Ledesma and Turf, whereby ESP agreed to acquire the assets and liabilities of Turf and relieve Ledesma of certain debt obligations. On February 14, 2014, ESP Resources, Inc., ESP Petrochemicals, Inc. and Gerard Allen Primeaux filed their First Answer, Special Exceptions, Affirmative Defenses and Counterclaims. On or about April 25, 2014, all parties, without admitting liability, entered into and executed a Settlement Agreement and Release of Claims.DATA

~~Madoff~~Not ~~Energy Holdings, LLC v~~Applicable. ~~ESP Resources, Inc.~~

On September 4, 2013, Madoff Energy Holdings, LLC filed its Original Petition against ESP Resources, Inc. in the District Court, 295th Judicial District, Harris County, Texas. On October 1, 2013, ESP filed its Answer. On November 25, 2013, Madoff filed its First Amended Petition alleging that ESP failed to repay a Promissory Note, executed on April 30, 2009, in sum of $87,190.00, plus interest on any unpaid balance owed at the rates of 5% per annum from October 30, 2008 to April 30, 2009, and 18% per annum after April 30, 2009. On or about March 19, 2014, Madoff filed a Motion for Summary Judgment. On or about March 24, 2014, ESP filed its Response. On April 7, 2014, the Court issued an Order Granting Madoff’s Motion for Summary Judgment and granting damages in the principal sum of $122,939.68; attorneys fees in the amount of $12,860.70, plus $10,000.00 should the judgment be appealed to the Texas Court of Appeals, plus $7,500.00 should the judgment be appealed to the Texas Supreme Court; costs of court; and post-judgment interest at 5% per annum on the total amount of the judgment from the date immediately following entry of the judgment until paid. On April 15, 2014, ESP filed its Notice of Appeal of the Final Judgment with the First Court of Appeals, Houston, Texas. On June 30, 2014, ESP filed its Brief for the Appellant. On July 30, 2014, Madoff filed its Brief for the Appellee. On August 18, 2014, ESP filed its Reply Brief for the Appellant. In August 2014, Madoff and ESP, in order to avoid the further expense of litigation, jointly prepared a Forbearance and Payment Agreement, effective August 11, 2014, whereby ESP agreed to pay Madoff $130,000.00 pursuant to a payment schedule of $30,000.00 per month for eleven months. On September 3, 2014, Andrew Madoff, CEO of Madoff Energy Holdings, Inc., died. On September 18, 2014, Madoff and ESP filed with the First Court of Appeals a Joint Appellant and Appellee Motion to Abate the Appeal to preserve the rights of both parties until such time as the Forbearance and Payment Agreement could be executed. On September 23, 2014, the Court issued a Writ granting the Motion to Abate the Appeal. On or about March 9, 2015, the Executor of Mr. Madoff’s Estate executed the Forbearance and Payment Agreement on behalf of the Estate. To date, ESP Resources, Inc. is making payments pursuant to the agreed upon Payment Schedule in accordance with the terms of the Forbearance and Payment Agreement.

~~BWC~~ITEM ~~Management, Inc~~7. v.MANAGEMENT’S ~~ESP~~DISCUSSION ~~Resources,~~AND ~~Inc.~~ANALYSIS ~~(f/k/a~~OF ~~Pantera~~FINANCIAL ~~Petroleum,~~CONDITION ~~Inc.)~~AND RESULT OF OPERATIONS

OnThe ~~April~~Company ~~25,~~has ~~2013,~~no ~~BWC~~operations ~~Management,~~or ~~Inc.~~revenue ~~filed~~as ~~its Original Petition against ESP Resources, Inc. in~~ of the ~~District~~date ~~Court,~~of ~~113th~~this ~~Judicial District, Harris County, Texas~~Report. OnWe ~~May~~are ~~31,~~currently ~~2013,~~in ~~ESP~~the ~~Resources,~~process Inc. filed its Original Answer. On August 5, 2014, BWC filed its Motion for Partial Summary Judgment against ESP. On August 21, 2014, BWC filed its First Amended Petition against ESP alleging that ESP had defaulted on three promissory notes documenting a series of ~~loans~~developing ~~with BWC as lender:~~ a ~~promissory~~business ~~note in sum of $73,006~~plan.~~00,~~ ~~due~~Management onintends ~~September~~to ~~30,~~explore ~~2012;~~ and ~~two~~identify ~~promissory~~viable business ~~notes~~opportunities inwithin ~~sum of $100,000.00, each, due on September 30, 2012 when ESP allegedly failed to pay~~ the ~~$73,006~~U.~~00 note~~S. Onincluding ~~August~~seeking ~~25, 2014, ESP filed its Response~~ to ~~BWC’s~~acquire ~~Motion~~a ~~for~~business ~~Partial~~in ~~Summary~~a ~~Judgment.~~reverse ~~On August 25, 2014, BWC filed its Reply to ESP’s Response to BWC’s Motion for Partial Summary Judgment~~merger. OnOur ~~August~~ability ~~27, 2014, ESP filed its Sur Reply~~ to ~~BWC’s~~effectively ~~Reply to ESP’s Response to BWC’s Motion for Partial Summary Judgment. On August 28~~identify, develop ~~2014,~~and ~~ESP~~implement ~~filed~~ a ~~No-Evidence~~viable ~~Motion~~plan for ~~Summary~~our ~~Judgment~~business ~~against~~may ~~BWC.~~be Onhindered ~~September~~by 4,risks ~~2014,~~and ~~BWC~~uncertainties ~~filed~~which ~~its~~are ~~Response~~beyond toour ~~ESP’s~~control, ~~No-Evidence~~including without ~~Motion for Summary Judgment. On September 12~~limitation, ~~2014,~~the ~~ESP~~continued ~~filed~~negative ~~its~~effects ~~Reply~~of tothe ~~BWC’s~~coronavirus ~~Response~~pandemic toon ~~ESP’s~~the ~~No-Evidence Motion for Summary Judgment~~U.S. Onand ~~September~~global ~~15, 2014, the Court issued an Order denying BWC’s Motion for Summary Judgment~~economies. OnFor ~~October~~more ~~27,~~information about ~~2014,~~ the ~~Court~~risk ~~issued an Order denying final Summary Judgment. Trial~~ of ~~this~~Covid-19 ~~action was held~~ on ~~March~~our ~~30 and March 31~~business, ~~2015~~see ~~resulting~~Item in1.A. a- ~~verdict~~“Risk ~~for BWC Management, Inc~~Factors”.

12Plan of Operation

~~ITEM~~The 4Company -has ~~SUBMISSION~~no OFoperations ~~MATTERS~~from TOa Acontinuing business ~~VOTE~~other OFthan ~~SECURITY~~the ~~HOLDERS~~expenditures related to running the Company and has no revenue from continuing operations as of the date of this Report.

~~None~~Management intends to explore and identify business opportunities within the U.S., including a potential acquisition of an operating entity through a reverse merger, asset purchase or similar transaction. Our Chief Executive Officer has experience in business consulting, although no assurances can be given that he can identify and implement a viable business strategy or that any such strategy will result in profits. Our ability to effectively identify, develop and implement a viable plan for our business may be hindered by risks and uncertainties which are beyond our control, including without limitation, the continued negative effects of the coronavirus pandemic on the U.S. and global economies. For more information about the risk of coronavirus on our business, see Item 1A “Risk Factors.”

~~PART~~We IIdo not currently engage in any business activities that provide revenue or cash flow. During the next 12-month period we anticipate incurring costs in connection with investigating, evaluating, and negotiating potential business combinations, filing SEC reports, and consummating an acquisition of an operating business.

~~ITEM~~Given 5our -limited ~~MARKET~~capital ~~FOR~~resources, ~~REGISTRANT’S~~we ~~COMMON~~may ~~EQUITY~~consider a business combination with an entity which has recently commenced operations, ~~AND~~is ~~RELATED~~a ~~STOCKHOLDER~~developing ~~MATTERS~~company ~~AND~~or ~~ISSUER~~is ~~PURCHASES~~otherwise OFin ~~EQUITY~~need ~~SECURITIES~~of additional funds for the development of new products or services or expansion into new markets, or is an established business experiencing financial or operating difficulties and is in need of additional capital. Alternatively, a business combination may involve the acquisition of, or merger with, an entity which desires access to the U.S. capital markets.

~~Our~~As ~~common~~of ~~shares~~the ~~were~~date ~~approved~~of ~~for~~this ~~quotation~~Report, onour ~~the~~management has ~~OTC~~not ~~Venture~~had ~~Stage~~any ~~Marketplace~~discussions ~~(OTCQB)~~with ~~(we~~any ~~were~~representative ~~formerly~~of ~~quoted~~any onother ~~the~~entity ~~OTC~~regarding ~~Bulletin~~a ~~Board)~~potential onbusiness ~~April~~combination. ~~16,~~Any ~~2007,~~target ~~and~~business that ~~are~~is ~~currently~~selected ~~quoted~~may ~~for~~be ~~trading~~financially onunstable ~~the~~or ~~OTCQB~~in ~~under~~ the ~~symbol~~early ~~“ESPI~~stages of development.” ~~The~~In ~~following~~such ~~quotations~~event, ~~obtained~~we ~~from~~expect ~~the~~to ~~OTCQB~~be ~~reflect~~subject to numerous risks inherent in the ~~high~~business and ~~low~~operations ~~bids~~of ~~for~~a ~~our~~financially ~~common~~unstable ~~stock~~or ~~based~~early-stage onentity. ~~inter-dealer~~In ~~prices~~addition, ~~without~~we ~~retail~~may ~~mark-up,~~effect ~~mark-down~~a orbusiness ~~commission~~combination with an ~~may~~entity ~~not~~in ~~represent~~an ~~actual~~industry ~~transactions.~~characterized ~~The~~by a high ~~and~~level ~~low~~of ~~bid~~risk ~~prices~~or ofin which our ~~common~~management ~~stock~~has ~~for~~limited experience, and, although our management will endeavor to evaluate the ~~periods~~risks ~~indicated~~inherent ~~below~~in ~~are~~a asparticular ~~follows:~~target business, there can be no assurance that we will properly ascertain or assess all significant risks.

	OTCQB(1)
Quarter Ended	High		Low
December 31, 2014	$	0.0175	$	0.005
September 30, 2014	$	0.013	$	0.004
June 30, 2014	$	0.0229	$	0.009
March 31, 2014	$	0.078	$	0.0103
December 31, 2013	$	0.0279	$	0.012
September 30, 2013	$	0.023	$	0.01
June 30, 2013	$	0.08	$	0.01
March 31, 2013	$	0.10	$	0.0554

Our management anticipates that we will likely only be able to effect one business combination due to our limited capital. This lack of diversification will likely pose a substantial risk in investing in the Company for the indefinite future because it will not permit us to offset potential losses from one venture or operating territory against gains from another. The risks we face will likely be heightened to the extent we acquire a business operating in a single industry or geographical region.

~~___________~~11

~~(1)~~We ~~OTCQB~~anticipate ~~quotations~~that ~~reflect~~the ~~inter-dealer~~selection ~~prices~~of ~~without~~a ~~retail~~business combination ~~mark~~will be a complex and risk-upprone process. Because of general economic conditions, ~~mark-down~~including orunfavorable ~~commission~~conditions caused by the coronavirus pandemic, rapid technological advances being made in some industries and ~~may~~shortages ~~not~~of ~~represent~~available ~~actual~~capital, ~~transactions~~management believes that there are a number of firms seeking business opportunities at this time at discounted rates with which we will compete. We ~~The~~expect ~~transfer~~that ~~agent~~any ~~and~~potentially ~~registrar~~available ~~for~~business ~~our~~combinations ~~common~~may ~~stock~~appear isin ~~American~~a ~~Stock~~variety ~~Transfer~~of different industries or regions and ~~Trust~~at ~~Company,~~various stages ~~LLC.~~of Asdevelopment, all of which will likely render the ~~date~~task of ~~this~~comparative ~~report,~~investigation and analysis of such business opportunities extremely difficult and complicated. Once we ~~had~~have ~~approximately~~developed ~~212~~and ~~shareholders~~begun ofto ~~record~~implement our business plan, ~~not~~management ~~including~~intends ~~those~~to ~~common~~fund ~~shares~~our ~~held~~working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in ~~street~~line ~~name~~with the implementation of a business plan and commencement of operations.

~~Dividend~~Based ~~Policy~~upon our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. If we are able to close a reverse merger, it is likely we will need capital as a condition of closing that acquisition. Because of the uncertainties, we cannot be certain as to how much capital we need to raise or the type of securities we will be required to issue. In connection with a reverse merger, we will be required to issue a controlling block of our securities to the target’s shareholders which will be very dilutive.

AsAdditional ofissuances ~~the date~~ of ~~this~~equity ~~filing,~~or ~~the~~convertible debt ~~Company~~securities ~~has~~will ~~paid~~result noin ~~cash~~dilution ~~dividends~~ to ~~holders of~~ our ~~common~~current ~~stock~~shareholders. WeFurther, ~~anticipate~~such ~~that~~securities ~~the~~might ~~Company’s~~have ~~future~~rights, ~~earnings~~preferences, ~~will~~or beprivileges senior ~~retained~~ to ~~finance~~our ~~the~~Common ~~continuing~~Stock. ~~development~~Additional offinancing ~~our~~may ~~business.~~not ~~The~~be ~~payment~~available ofupon ~~any~~acceptable ~~future~~terms, ~~dividends~~or ~~will be~~ at ~~the~~all. ~~discretion~~If ofadequate ~~the~~funds ~~Company’s~~are ~~board~~not ofavailable or ~~directors~~are ~~and~~not ~~will~~available ~~depend~~on ~~upon~~acceptable terms, ~~among~~we ~~other~~may ~~things,~~not ~~future~~be ~~earnings,~~able ~~any~~to ~~contractual~~take ~~restrictions,~~advantage ~~the~~of ~~success~~prospective ofnew business ~~activity,~~endeavors ~~regulatory~~or ~~and~~opportunities, which ~~corporate~~could ~~law~~significantly ~~requirements~~ and ~~the~~materially ~~general~~restrict ~~financial~~our ~~condition~~business ~~of the Company~~operations.

~~Stock~~We ~~Option~~anticipate ~~Awards~~that we will incur operating losses in the next 12 months, principally costs related to our being obligated to file reports with the SEC. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development. Such risks for us include, but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, and the management of growth. To address these risks, we must, among other things, develop, implement, and successfully execute our business and marketing strategy, respond to competitive developments, and attract, retain, and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so could have a material adverse effect on our business prospects, financial condition, and results of operations.

WeCOVID-19 ~~did not grant any options during the years ended December 31, 2014 and 2013.~~Update

OnTo ~~July 29~~date, ~~2011 shareholders approved~~ the ~~2011~~COVID-19 ~~STOCK~~pandemic ~~OPTION~~has ~~AND~~not ~~INCENTIVE~~had ~~PLAN which authorized up to 5,000,000 options shares. Under the plan the exercise price per share for the Stock covered by~~ a ~~Stock~~material impact ~~Option granted pursuant shall not be less than 100% of the Fair Market Value~~ on the ~~date~~Company, ofparticularly ~~grant.~~due ~~In the case of an Incentive Stock Option that is granted~~ to aour ~~Ten~~current ~~Percent~~lack ~~Owner, the option price~~ of ~~such Incentive Stock Option shall be not less than 110% of the Fair Market Value on the grant date~~operations. The ~~term~~pandemic ofmay, ~~each~~however, ~~Stock~~have ~~Option~~an ~~shall~~impact beon ~~fixed~~our ~~but~~ability noto evaluate ~~Stock~~and ~~Option~~acquire ~~shall be exercisable more than ten years after the date the Stock Option is granted. In the case of~~ an ~~Incentive~~operating ~~Stock~~entity ~~Option~~through ~~that is granted to~~ a ~~Ten~~reverse ~~Percent~~merger ~~Owner,~~or ~~the~~otherwise. ~~term~~See ofItem ~~such~~1A ~~Stock~~“Risk ~~Option~~Factors” ~~shall~~for ~~be no~~ more ~~than five years from the date of grant~~information.

13Off Balance Sheet Arrangements

~~Stock~~As ~~option~~of ~~activity~~the ~~summary~~date ~~covering~~of ~~options~~this isReport, ~~presented~~we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in ~~the~~financial ~~table~~condition, ~~below:~~revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

	Number of Shares			Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)
Outstanding at December 31, 2012		52,975,000			0.12		8.9
Granted		-			-		-
Exercised		-			-		-
Expired/Forfeited		(45,000	)		0.14		7.6
Outstanding at December 31, 2013		52,930,000		$	0.12		7.9
Granted		-			-		-
Exercised		-			-		-
Expired/Forfeited		(35,000	)		0.14		6.6
Outstanding at December 31, 2014		52,895,000		$	0.12		6.9
Exercisable at December 31, 2014		50,095,000		$	0.12		6.9
Exercisable at December 31, 2013		34,530,000		$	0.13		7.6

Going Concern

~~During~~The ~~the~~independent ~~year~~registered ~~ended~~public accounting firm auditors’ report accompanying our December 31, ~~2013,~~2020 ~~the~~financial ~~Company~~statements ~~recognized~~contained ~~stock-based~~an ~~compensation~~explanatory ~~expense~~paragraph ofexpressing ~~$783,815~~substantial doubt ~~related~~about toour ~~stock~~ability ~~options.~~to Ascontinue ofas ~~December~~a ~~31,~~going ~~2013,~~concern. ~~there~~The ~~was~~financial ~~approximately~~statements ~~$1,390,003~~have ofbeen ~~total~~prepared ~~unrecognized~~“assuming ~~compensation~~that ~~cost~~we ~~related~~will tocontinue as ~~non-vested~~a ~~stock~~going ~~options~~concern,” which iscontemplates ~~expected~~that towe bewill ~~recognized~~realize ~~over~~our ~~the~~assets ~~remaining~~and ~~vesting~~satisfy ~~period.~~our ~~The~~liabilities ~~aggregate~~and ~~intrinsic~~commitments ~~value~~in ofthe ~~these~~ordinary course ~~options~~of ~~was $0 at December 31, 2013~~business.

~~During~~ITEM ~~the year ended December 31, 2014, the Company recognized stock-based compensation expense of $705,680 related to stock options~~7A. AsQUANTITATIVE ofAND ~~December~~QUALITATIVE ~~31,~~DISCLOSURES ~~2014,~~ABOUT ~~there~~MARKET was approximately $684,323 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over the remaining vesting period. The aggregate intrinsic value of these options was $0 at December 31, 2014.RISK

~~DIRECTOR~~Not ~~COMPENSATION~~applicable.

~~Compensation of Directors~~12

WeESP ~~currently have no formal plan for compensating our directors for their services in their capacity as directors~~RESOURCES, ~~although we may elect to issue stock options to such persons from time to time~~INC. Directors are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our Board. Our Board may award special remuneration to any director undertaking any special services on our behalf other than services ordinarily required of a director.

~~Pension~~December 31, ~~Retirement~~2020, orand ~~Similar Benefit Plans~~2019

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the Board or a committee thereof.

		Page
Financial Statements
Report of Independent Registered Public Accounting Firm		F-2
Balance Sheets		F-3
Statements of Operations and Comprehensive Loss		F-4
Statements of Changes in Stockholders’ Equity		F-5
Statements of Cash Flows		F-6
Notes to Financial Statements		F-7

14F-1

~~EQUITY~~Report of ~~COMPENSATION~~Independent ~~PLAN~~Registered ~~INFORMATION~~Public Accounting Firm

~~The~~To the ~~following~~shareholders ~~table~~and ~~provides~~the ~~information~~board as of ~~December~~directors ~~31,~~of ~~2014~~ESP ~~about the securities issued~~Resources, ~~or authorized for future issuance, under our equity compensation plans, including the 2011 Stock Option and Incentive Plan:~~Inc.

Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options (a)		Weighted-Average Exercise Price of Outstanding Options (b)		Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)
Equity compensation plans approved by security holders		-		-		-
Equity compensation plans not approved by security holders		40,250,000	$	0.12		-
2011 Stock Incentive Plan approved by security holders on July 29, 2011		-		-		5,000,000
Total		40,250,000	$	0.12		5,000,000

Opinion on the Financial Statements

~~Purchases~~We have audited the accompanying balance sheet of ~~Equity~~ESP ~~Securities~~Resources, byInc. (the ~~Issuer~~“Company”) as of December 31, 2020, the related statement of operations, stockholders’ equity (deficit), and ~~Affiliated~~cash ~~Purchasers~~flows for the year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States.

~~None~~Substantial Doubt about the Company’s Ability to Continue as a Going Concern

~~ITEM~~The accompanying 6financial -statements ~~SELECTED~~have ~~FINANCIAL~~been ~~DATA~~prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

~~This~~Basis for selected financial data should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” under Item 7 of this Annual Report on Form 10-K, which includes information concerning significant trends in the financial condition and results of operations.Opinion

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

	December 31,
	2014			2013
Total Assets	$	5,782,496		$	6,010,938
Total Liabilities	$	10,322,283		$	10,321,548
Total Stockholders’ Deficit	$	(4,539,787	)	$	(4,313,610	)
Working Capital Deficit	$	(6,264,530	)	$	(5,331,030	)
Revenues (1)	$	11,912,045		$	10,591,111
Loss from Continuing Operations (1)	$	(2,061,441	)	$	(4,872,356	)
Net Loss	$	(2,061,441	)	$	(5,237,777	)

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

~~(1)~~Our audit ~~Reflects~~included ~~the~~performing ~~results~~procedures ~~from~~to ~~continuing~~assess ~~operations~~the ~~for~~risks ~~each~~of material misstatement of the ~~years~~financial ~~ended~~statements, ~~December~~whether 31due to error or fraud, ~~2014~~and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and ~~2013~~disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

~~ITEM~~/s BF 7Borgers –CPA ~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~PC

~~Cautionary~~BF Borgers ~~Notice~~CPA ~~Regarding Forward Looking Statements~~PC

~~The~~We have ~~information~~served ~~contained in Item 7 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,~~ as ~~amended, and Section 21E of~~ the ~~Securities~~Company’s ~~Exchange~~auditor ~~Act~~since of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report. 2021

15Lakewood, CO

We desire to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. This filing contains a number of forward-looking statements which reflect management’s current views and expectations with respect to our businessJuly 29, strategies, products, future results and events, and financial performance. All statements made in this filing other than statements of historical fact, including statements addressing operating performance, events, or developments which management expects or anticipates will or may occur in the future, including statements related to distributor channels, volume growth, revenues, profitability, new products, adequacy of funds from operations, statements expressing general optimism about future operating results, and non-historical information, are forward looking statements. In particular, the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “may,” variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances.2021

~~Readers should not place undue reliance on these forward~~F-looking statements, which are based on management’s current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this filing. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks to be discussed in our Annual Report on Form 10-K and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.2

~~Use~~ESP ofRESOURCES, ~~Generally Accepted Accounting Principles (“GAAP”) Financial Measures~~INC.

WeBalance use GAAP financial measures in the section of this report captioned “Management’s Discussion and Analysis or Plan of Operation” (MD&A), unless otherwise noted. All of the GAAP financial measures used by us in this report relate to the inclusion of financial information. This discussion and analysis should be read in conjunction with our financial statements and the notes thereto included elsewhere in this annual report. All references to dollar amounts in this section are in United States dollars, unless expressly stated otherwise. Please see our “Risk Factors” for a list of our risk factors.Sheet

Overview

	December 31,
	2020
Assets
Total assets	$	-

Liabilities and Stockholders’ Deficit
Current Liabilities
Due to related parties	$	9,546
Total current liabilities		9,546

Total liabilities		9,546

Stockholders’ Deficit
Preferred stock - $0.001 par value, 10,000,000 shares authorized, none outstanding		-
Common Stock - $0.001 par value, 350,000,000 shares authorized, 237,830,249 shares issued and outstanding as of December 31, 2020 and 2019		237,831
Additional paid in capital		26,620,553
Accumulated deficit		(26,867,930	)
Total stockholders’ deficit		(9,546	)

Total liabilities and stockholders’ deficit	$	-

~~This~~The ~~subsection~~accompanying ofnotes ~~MD&A~~are ~~provides~~ an ~~overview~~integral part of these ~~the important factors that management focuses on in evaluating our businesses,~~ financial ~~condition and operating performance, our overall business strategy and our earnings for the periods covered.~~statements

~~Result of Operations~~F-3

~~Year~~ESP ~~ended December 31~~RESOURCES, ~~2014 as Compared to Year ended December 31, 2013~~INC.

~~The~~Statements ~~following table summarizes the results~~ of ~~our operations during years ended December 31, 2014 and 2013.~~ Operations

	Year ended
	December 31,
	2020

Revenue
Total revenue, net	$	-

Operating expenses
General and administrative expenses		9,546
Total operating expenses		9,546

Loss from Operations		(9,546	)

Other income (expenses)
Total other income (expenses), net		-

Loss from operations before income taxes		(9,546	)
Income tax expense		-
Net Loss	$	(9,546	)

Earnings per share
Basic and diluted	$	-

Weighted average number of ordinary shares
Basic and diluted		237,830,249

	Year Ended December 31,			Year Ended December 31,			Increase			% Increase
	2014			2013			(Decrease)			(Decrease)
Continuing operations:
Revenue	$	11,912,045		$	10,591,111		$	1,320,934			12	%
Cost of goods sold		4,096,444			5,186,517			(1,090,073	)		(21)	%
Gross profit		7,815,601			5,404,594			2,411,007			45	%
General and administrative expenses		8,039,514			8,016,259			23,255			0	%
Depreciation		787,632			831,642			(44,010	)		(5	)%
Loss (Gain) on disposal of assets		(2,953	)		327,174			(330,127	)		(101	)%
Impairment on assets held for sale		2,049			133,556			(131,507	)		(98	)%
Loss from operations		(1,010,641	)		(3,904,037	)		2,893,396			(74	)%
Total other expense		(1,050,800	)		(968,319	)		(82,481	)		9	%
Net loss from continuing operations		(2,061,441	)		(4,872,356	)		2,965,537			61	%
Net loss from discontinued operations		-			(365,421	)		365,421			100	%
Net loss	$	(2,061,441	)	$	(5,237,777	)	$	3,330,958			64	%

The accompanying notes are an integral part of these financial statements

~~Revenues~~F-4

~~Revenue~~ESP ~~from continuing operations for the year ended December 31~~RESOURCES, ~~2014 was $11,912,045, compared to $10,591,111 for the same period in 2013, an increase of $1,320,934, or 12%~~INC. ~~The increase was primarily due to a increase in sales volume petrochemical sales and services to new customers engaged production petrochemicals in the South-East Texas regions.~~

~~Gross~~Statement ~~Profit~~of Changes in Shareholders’ Deficit

The Company’s gross profit from continuing operations, as a percentage of revenue for the year, was 66% compared to 51% for the same period in 2013, an increase of 15%. The increase in gross margin results from of an increased portion of our business from production petrochemical sales which have a higher gross profit margin of 65% compared to completion chemicals 54% gross profit margin.

	Common Stock				Additional paid in		Accumulated
	Shares		Amount		capital		Deficit			Total
Balance, January 1, 2020		237,830,249	$	237,831	$	26,620,553	$	(26,858,384	)	$	-

Net loss		-		-		-		(9,546	)		(9,546	)
Balance, December 31, 2020		237,830,249	$	237,831	$	26,620,553	$	(26,867,930	)	$	(9,546	)

~~General~~The ~~and~~accompanying ~~Administrative~~notes ~~Expenses~~are an integral part of these financial statements

General and administrative expenses increased by $23,255, or 0% for the year, compared to the same period in 2013. The increase in expenses for the year is primarily due to the increase of $649,567 in stock compensation from $1,177,697 in year ended December 31, 2013 to $1,827,265 in the year ended December 31, 2014, and reduction in legal and professional fees.F-5

~~The~~ESP ~~Company recognized a gain on disposal of certain assets in 2014 of $155~~RESOURCES,~~526~~ and in the period ended December 31, 2013 a loss on disposal of certain assets of $327,174 and impairment loss on assets held for sale of $133,556, representing the closure cost of the former corporate offices in The Woodlands, Texas and anticipated loss on assets held for saleINC. ~~There were no comparable amounts in the prior fiscal year.~~

~~Net~~Statement ~~Loss~~of Cash Flows

Net loss for the year ended December 31, 2014 was $2,061,441, a decrease of $3,176,336 compared to a loss of $5,237,777 for the same period in 2013. The primary reason for the decrease in the net loss was as a result of an increase gross profit gain on sales of equipment versus a loss of sales of equipment and impairment of assets in 2013; in change in loss from discontinued operations of $365,421 compared to $0 for the years ended December 31, 2013 and December 2014, respectively.

	Year Ended
	December 31,
	2020
Cash Flows From Operating Activities
Net loss	$	(9,546	)
Changes in operating assets and liabilities		-
Net cash provided by (used in) operating activities		(9,546	)

Cash Flows From Investing Activities
Net cash provided by (used in) investing activities		-
		-
Cash Flows From Financing Activities
Proceeds from related party loans		9,546
Net cash provided by (used in) financing activities		9,546

Net change in cash		-
Cash , beginning of year		-
Cash, end of year	$	-

Supplemental disclosure of cash flow information
Cash paid for income tax expense	$	-
Cash paid for interest expense	$	-

~~Modified~~The ~~EBITDA~~accompanying notes are an integral part of these financial statements

~~Modified Earnings before interest (including factoring fees), taxes, depreciation amortization and stock~~F-based compensation (“Modified EBITDA”) is a non-GAAP financial measure. We use Modified EBITDA as an unaudited supplemental financial measure to assess the financial performance of our assets without regard to financing methods, capital structures, taxes or historical cost basis; our liquidity and operating performance over time in relation to other companies that own similar assets and that we believe calculate Modified EBITDA in a similar manner; and the ability of our assets to generate cash sufficient for us to pay potential interest costs. We also understand that such data are used by investors to assess our performance. However, the term Modified EBITDA is not defined under generally accepted accounting principles and Modified EBITDA is not a measure of operating income, operating performance or liquidity presented in accordance with generally accepted accounting principles. When assessing our operating performance or liquidity, investors should not consider this data in isolation or as a substitute for net income, cash flow from operating activities, or other cash flow data calculated in accordance with generally accepted accounting principles. Modified EBITDA increased from a loss of $2,396,630 for the year ended December 31, 2013 to a gain of $1,630,780 for the year ended December 31, 2014 and is calculated as follows:6

17ESP RESOURCES, INC.

	Year Ended December 31, 2014			Year Ended December 31, 2013
Net loss	$	(2,061,441	)	$	(5,237,777	)
Add back interest expense and factoring fees, net of interest income		819,791			1,287,964
Add back depreciation		787,632			831,642
Add back amortization debt discount		266,241			-
Add back stock-based compensation		1,827,264			1,177,697
(Deduct) change in fair value of derivative liabilities		(8,707	)		(766,923	)
Add back loss on extinguishment of debt		-			310,767
Modified EBITDA	$	1,630,780		$	(2,396,630	)

NOTES TO FINANCIAL STATEMENTS

~~Liquidity~~NOTE ~~and~~1 ~~Capital~~– ~~Resources~~ORGANIZATION AND DESCRIPTION OF BUSINESS

~~Cash~~This annual report contains forward-looking statements as that term is defined under applicable securities laws. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors,” that may cause the Company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

AsAlthough ofwe ~~December~~believe ~~31,~~that ~~2014~~the expectations reflected in the forward-looking statements are reasonable, we ~~had~~cannot ~~$121~~guarantee future results,~~880~~ levels of ~~cash~~activity, ~~and~~performance ~~cash~~or ~~equivalents,~~achievements. Except as ~~compared~~required toby $5applicable law,~~757~~ asincluding the securities laws of ~~December~~the 31United States, ~~2013~~we do not intend to update any of the forward-looking statements to conform these statements to actual results. Our financial statements are stated in United States dollars (USD) and are prepared in accordance with United States generally accepted accounting principles (GAAP).

~~Cash~~Any ~~Flow~~reference herein to “ESP Resources,” the “Company,” “we,” “our” or “us” is intended to mean ESP Resources, Inc., a Nevada corporation, including our subsidiaries unless otherwise indicated.

~~The cash flow for the years ended December 31, 2014 and 2013 are summarized below:~~Corporate History

	Years Ended December 31,
	2014			2013
Net cash provided by (used in) operating activities	$	1,198,358		$	1,308,182
Net cash used in investing activities		(350,009	)		(47,472	)
Net cash (used in) provided by financing activities		(732,226	)		(1,325,167	)
Net decrease in cash	$	116,123		$	(64,457	)

ESP Resources, Inc. (“ESP Resources” the “Company”) was incorporated in the State of Nevada on October 27, 2004.

~~Cash~~On March ~~inflow~~10, ~~from~~2016, ~~operations~~ESP ~~during~~Resources, Inc. (the ~~year~~“Company” ~~ended~~and/or ~~December~~the ~~31,~~“Debtor”) ~~2014~~filed ~~amounted~~a tovoluntary ~~$1,198,358~~petition as(the ~~compared~~“Voluntary Petition”) toin ~~net~~the ~~cash~~United ~~inflows~~States ~~from~~Bankruptcy ~~operations~~Court offor ~~$1,308,182~~the inSouthern District of Texas (the ~~same~~“Bankruptcy ~~period~~Court”) ofCase ~~2013~~No. 16-60021-H2-11 ~~The~~seeking ~~decrease~~relief inunder ~~cash~~the ~~inflow~~provisions ~~was~~of ~~due~~Chapter ~~primarily~~11 toof the ~~increase~~United inStates ~~accounts~~Bankruptcy ~~receivable,~~Code ~~accounts~~(the ~~payable~~“Bankruptcy ~~and~~Code”). The ~~accrued~~Company’s ~~expenses;~~bankruptcy ~~decreases~~case inis ~~inventory~~being ~~and~~jointly ~~prepaid~~administered ~~expenses~~with that of ESP Petrochemicals, Inc. under Case No. 16-60020-H2-11.

~~Our~~On January ~~cash outflows used in investing activities during the year ended December 31~~7, ~~2014 amounted to $350~~2021,~~009~~ as ~~compared~~a toresult ~~$47,472 in the same period~~ of ~~2013.~~a ~~Cash~~custodianship ~~outflows~~in ~~for~~Clark ~~the~~County, ~~proceeds~~Nevada, ~~from~~Case ~~the~~Number: ~~sale~~A-20-825339-B, ofCustodian ~~vehicles~~Ventures ~~and~~LLC ~~equipment~~(“Custodian”) was ~~the~~appointed ~~proceeds~~custodian ~~from the sale~~ of ~~vehicles and equipment for~~ (the ~~year~~“Company”). ~~ended~~David ~~December~~Lazar ~~31,~~is ~~2014 decreased to $21,477 compared to $131,533 for~~ the ~~same~~managing ~~period~~director inof ~~2013~~Custodian.

~~Our~~On January ~~cash~~7, ~~outflows~~2021, ~~from~~Custodian ~~financing~~appointed ~~activities~~David ~~amounted~~Lazar toas ~~$732,226 in~~ the ~~year~~Company’s ~~ended~~Chief ~~December~~Executive 31Officer, ~~2014~~President, asSecretary, ~~compared~~Chief ~~to a cash outflow of $1~~Financial Officer,~~325,167~~ inChief ~~the~~Executive ~~same~~Officer ~~period of 2013. The primary change was due to the increase in factoring advances~~ and ~~reduction~~Chairman ~~in payment~~ of ~~debt; offset by~~ the ~~payment~~Board of ~~settlement on contingent liabilities~~Directors.

18The Company’s year-end is December 31.

~~Working Capital~~F-7

WeESP ~~estimate that our general operating expenses for the next twelve month period will remain the same as compared to the levels of 2014 for such items as professional and consulting fees~~RESOURCES, salaries, travel, telephone, office and warehouse rent, and ongoing legal, accounting, and audit expenses to comply with our reporting responsibilities as a public company under the United States Exchange Act of 1934, as amendedINC. ~~Any increase in general operating expenses will be due to increases in field operating personnel as the demands from current and new customers increase.~~

AsNOTES ofTO ~~December~~FINANCIAL 31, 2014, we had a working capital deficit of $6,264,530. We will require additional funds to implement our growth strategy. To date, we have had negative cash flows from operations and we have been dependent on sales of our equity securities and debt financing to meet our cash requirements. Even though we anticipate our net loss and negative cash flows to lessen over the coming quarters, we anticipate that we will have to continue to fund our net loss through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares. There is still no assurance that we will be able to maintain operations at a level sufficient for an investor to obtain a return on his investment in our common stock. Furthermore, we may continue to be unprofitable.STATEMENTS

~~Cash~~NOTE ~~Requirements~~2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~Our~~Basis ~~plan~~ of operations for the next 12 months involves the growth of our completion and production petrochemical business through the expansion of district offices, regional sales and analytical services to new and existing customers. We estimate that our needs for additional capital for the next twelve month period to be $3,000,000. However, if our operating expenses or capital expenditures exceed estimates, we will require additional monies during the next twelve months to execute our business plan. As of December 31, 2014, the Company had cash of $121,880 and a working capital deficit of $6,264,530. We incurred a net loss of $2,061,441 for the year ended December 31, 2014.Presentation

WeThe ~~can~~accompanying ~~offer~~financial nostatements ~~assurance~~have ~~that~~been prepared ~~the~~in ~~Company~~accordance ~~will~~with ~~generate~~the ~~cash~~Financial ~~flow~~Accounting ~~sufficient~~Standards toBoard ~~achieve~~(“FASB”) ~~profitable~~“FASB ~~operations~~Accounting orStandard ~~that~~Codification™” (the ~~our~~“Codification”) ~~expenses~~which ~~will~~is ~~not~~the ~~exceed~~source ~~our~~of ~~projections.~~authoritative ~~There~~accounting ~~are~~principles norecognized ~~assurances~~by ~~that~~the weFASB ~~will be able~~ to ~~obtain funds required for our continued operation. There can~~ be noapplied by ~~assurance~~nongovernmental ~~that~~entities ~~additional~~in ~~financing~~the ~~will~~preparation beof ~~available~~financial tostatements usin ~~when~~conformity ~~needed~~with ~~or,~~generally ifaccepted ~~available,~~accounting ~~that~~principles it(“GAAP”) in can be obtained on commercially reasonable terms. If we are not able to obtain additional financing on a timely basis, we will not be able to meet our other obligations as they become due and we will be forced to scale down or perhaps even cease the ~~operation~~United ~~of our business~~States.

~~Going~~Use ~~Concern~~of estimates

~~Due~~The preparation of financial statements in conformity with U.S. GAAP requires management to ~~our~~make ~~net~~estimates ~~losses~~and assumptions that affect the reported amounts of assets and liabilities, ~~negative~~disclosure ~~cash~~of ~~flow~~contingent assets and ~~negative~~liabilities ~~working~~at ~~capital,~~the ~~our~~date ~~independent~~of ~~auditors~~the ~~included~~financial anstatements, ~~explanatory~~and ~~paragraph~~the ~~regarding~~reported ~~substantial~~amounts ~~doubt~~of revenue ~~about~~and ~~our~~expenses ~~ability~~during tothe ~~continue~~reporting asperiod. aManagement ~~going~~makes ~~concern~~these inestimates ~~their~~using ~~report~~the onbest ~~our~~information ~~audited~~available ~~financial~~at ~~statements~~the ~~for~~time the estimates ~~year~~are ~~ended~~made; ~~December~~however ~~31,~~actual ~~2014~~results could differ from those estimates.

WeCash ~~have historically incurred losses,~~ and ~~through~~cash December 31, 2014 have incurred losses of $26,858,384 since our inception. Because of these historical losses, we will require additional working capital to develop our business operations. We intend to raise additional working capital through private placements, public offerings, bank financing and/or advances from related parties or shareholder loans.equivalents

~~There~~Cash ~~are~~and nocash ~~assurances~~equivalents ~~that~~consist ~~we will be able to achieve a level~~ of ~~revenues adequate to generate sufficient~~ cash ~~flow~~on ~~from operations. To the extent that funds generated from operations and any private placements~~hand, cash ~~public~~in ~~offerings and/or~~ bank ~~financing~~with ~~are~~no ~~insufficient~~restrictions, weas ~~will~~well ~~have~~as tohighly ~~raise~~liquid ~~additional~~investments ~~working~~which ~~capital.~~are Nounrestricted ~~assurance~~as ~~can~~to bewithdrawal ~~given that additional financing will be available,~~ or ~~if available~~use, ~~will~~and bewhich onhave remaining ~~terms~~maturities ~~acceptable~~of tothree ~~us.~~months Ifor ~~adequate~~less ~~working~~when ~~capital~~initially ~~is not available we may not increase our operations~~purchased.

19Income taxes

~~These~~The ~~conditions~~Company ~~raise~~accounts ~~substantial~~for ~~doubt~~income ~~about~~taxes ~~our~~under ~~ability~~FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to ~~continue~~differences asbetween athe ~~going~~financial ~~concern~~statement carrying amounts of existing assets and liabilities and their respective tax bases. ~~The~~Deferred ~~financial~~tax ~~statements~~assets doand ~~not~~liabilities ~~include~~are ~~any~~measured ~~adjustments~~using ~~relating~~enacted tax rates expected to apply to taxable income in the ~~recoverability~~years ~~and~~in ~~classification~~which ofthose ~~asset~~temporary ~~carrying~~differences ~~amounts~~are expected to be recovered or settled. Under FASB ASC 740, the ~~amount~~effect on deferred tax assets and ~~classification~~liabilities of ~~liabilities~~a change in tax rates is recognized in income in the period that ~~might~~includes bethe ~~necessary~~enactment ~~should~~date. weFASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be ~~unable~~taken in a tax return. For those benefits to ~~continue~~be asrecognized, a ~~going~~tax position ~~concern~~must be more-likely-than-not to be sustained upon examination by taxing authorities.

~~Off-Balance~~The ~~Sheet~~amount ~~Arrangements~~recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.

~~The~~Net ~~Company~~Loss ~~has~~per no outstanding derivative financial instruments, off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. The Company does not engage in trading activities involving non-exchange traded contracts.Share

~~Application~~Net ofloss ~~Critical~~per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting ~~Policies~~Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.

~~The~~Recent ~~preparation~~Accounting of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures of the Company. Although these estimates are based on management’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ from such estimates.Pronouncements

~~Inventory~~There are no recent accounting pronouncements that impact the Company’s operations.

~~Inventory represents raw and blended chemicals and other items valued at the lower of cost or market with cost determined using the first~~F-~~in first-out method, and with market defined as the lower of replacement cost or realizable value.~~8

~~Environmental~~ESP ~~Costs~~RESOURCES, INC.

~~Environmental~~NOTES ~~expenditures~~TO ~~that~~FINANCIAL relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to a plan of action based on the then known facts.STATEMENTS

AsNOTE of3 ~~December~~- ~~31,~~GOING ~~2014, we have not incurred any environmental expenditures.~~CONCERN

~~Derivatives~~As of December 31, 2020, the Company had $-0- in cash and cash equivalents. The Company has net loss of $9,546 for the year ended December 31, 2020 and has negative working capital of $9,546 and accumulated deficit of $26,867,930 at December 31, 2020. The Company’s principal sources of liquidity have been cash provided by operating activities, as well as financial support from related parties. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to maintain profitability and continue growth for the foreseeable future. If management is not able to increase revenue and/or manage operating expenses in line with revenue forecasts, the Company may not be able to maintain profitability. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The ~~valuation~~Company ofwill ~~our~~focus on ~~embedded~~improving ~~derivatives~~operation efficiency and ~~warrant~~cost derivatives are determined primarily by the multinomial distribution (Lattice) model. An embedded derivative is a derivative instrument that is embedded within another contract. In the case of a convertible note payable (the host contract)reduction, ~~any~~developing ~~right~~core tocash-generating ~~convert the note by the holder~~business, ~~certain default redemption right premiums~~ and aenhancing ~~change~~marketing ~~of control premium (payable in cash if a fundamental change occurs) are each embedded derivative instruments~~function. InActions include ~~accordance~~developing ~~with~~more ~~ASC 815 “Accounting for Derivative Instruments and Hedging Activities~~customers,” as ~~amended,~~well these embedded derivatives are marked-to-market each reporting period, with a corresponding non-cash gain or loss charged to the current period. A warrant derivative liability is also determined in accordance with ASC 815. Based on ASC 815, warrants which are determined to be classified as ~~derivative~~creating ~~liabilities~~synergy ~~are~~using ~~marked-to-market each reporting period, with a corresponding non-cash gain or loss charged to~~ the ~~current~~Company’s ~~period~~resources. The practical effect of this has been that when our stock price increases so does our derivative liability and resulting in a non-cash loss charge that reduces our earnings and earnings per share. When our stock price declines, we record a non-cash gain, increasing our earnings and earnings per share.

ToThe ~~determine~~Company ~~the~~believes that ~~fair~~available ~~value~~cash ofand ~~our~~cash ~~embedded~~equivalents, ~~derivatives~~the cash provided by operating activities, ~~management~~together ~~evaluates~~with ~~assumptions~~actions ~~regarding~~as ~~the~~developing ~~probability~~more customers and create synergy of ~~certain~~the ~~future~~Company’s ~~events.~~resources, ~~Other~~should ~~factors~~enable ~~used~~the Company to ~~determine~~meet ~~fair~~presently ~~value~~anticipated ~~include~~cash ~~our~~needs ~~period~~for ~~end~~at ~~stock~~least ~~price,~~the next ~~historical~~12 ~~stock~~months ~~volatility,~~after ~~risk~~the ~~free~~date ~~interest~~that ~~rate~~the financial statements are issued and ~~derivative~~the ~~term.~~Company ~~The~~has ~~fair~~prepared ~~value~~the ~~recorded~~financial ~~for~~statements on a going concern basis. If the ~~derivative~~Company ~~liability~~encounters ~~varies~~unforeseen ~~from~~circumstances ~~period~~that place constraints on its capital resources, management will be required to ~~period.~~take ~~This~~various ~~variability~~measures ~~may~~to ~~result~~conserve inliquidity, ~~the~~which ~~actual~~could ~~derivative~~include, ~~liability~~but ~~for~~not anecessarily ~~period~~be ~~either~~limited ~~above~~to, orobtaining ~~below~~financial support from related parties and controlling overhead expenses. Management cannot provide any assurance that the ~~estimates~~Company’s ~~recorded~~efforts onwill be ~~our~~successful. ~~consolidated~~The financial statements, ~~resulting~~do innot ~~significant~~include ~~fluctuations~~any inadjustments ~~other~~to ~~income~~reflect ~~(expense)~~the ~~because~~possible offuture effects on the ~~corresponding~~recoverability ~~non-cash~~and classification ~~gain~~of assets or ~~loss~~the ~~recorded~~amounts and classification of liabilities that may result from the outcome of these uncertainties.

20NOTE 4 – EQUITY

~~Impairment~~Common ~~of Long-Lived Assets and Long-Lived Assets to be Disposed~~Stock

The Company ~~reviews~~has ~~its~~authorized ~~long-lived~~350,000,000 ~~assets and identifiable finite-lived intangibles for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amount~~ shares of ~~the asset may not be recoverable~~$0.001 ~~The~~par ~~first step of the impairment test~~value, ~~used~~common ~~to identify potential impairment, compares undiscounted future cash flows of the asset or asset group with the related carrying amount~~stock. IfAs ~~the undiscounted future cash flows~~ of ~~the~~December ~~asset~~31, ~~or asset group exceed its carrying amount~~2020, ~~the~~there ~~asset or asset group is not considered to be impaired and the second step is unnecessary. If such assets~~ were ~~considered to be impaired~~237,830,249 ~~the~~shares ~~impairment to be recognized would be measured by the amount by which the carrying amount~~ of ~~the~~Common ~~assets~~Stock ~~exceeds~~issued ~~the~~and ~~fair market value of the assets~~outstanding. ~~Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.~~

~~ITEM 7A~~ F- ~~QUANTITATIVE AND QUALITIATIVE DISCLOSURES ABOUT MARKET RISK~~9

WeESP ~~are a smaller reporting company~~RESOURCES, ~~as that term is defined in Rule 12b-2 of the Exchange Act of 1934, and are not required to provide the information required by this Item~~INC.

~~ITEM~~NOTES 8TO - FINANCIAL STATEMENTS ~~AND SUPPLEMENTARY DATA~~

~~Our~~NOTE ~~financial~~5– ~~statements~~RELATED ~~are~~PARTY ~~stated~~NOTES ~~in United States dollars and are prepared in accordance with United States generally accepted accounting principles.~~PAYABLE

21All of the Company’s financing has come from its Court appointed custodian, Custodian Ventures, LLC. As of December 31, 2020 the Company’s court appointed custodian, Custodian Ventures had loaned the Company $9,546 on an interest free basis.

~~ITEM~~NOTE 96 -– ~~CHANGES~~COMMITMENTS IN AND ~~DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE~~CONTINGENCIES

The Company did ~~decided to change auditors on October 17, 2014. The Company did~~ not have any ~~disagreements~~contractual ~~with~~commitments ~~its~~as ~~accountants~~of ~~during the previous two fiscal years ended~~ December 31, ~~2014 and December 31, 2013~~2020.

~~ITEM~~NOTE 7– 9ASUBSEQUENT ~~- CONTROLS AND PROCEDURES~~EVENTS

~~Evaluation~~In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of ~~Disclosure~~subsequent ~~Controls~~events through the date that the financial statements were available to be issued and ~~Procedures~~has determined that it does not have any material subsequent events to disclose in these financial statements except as follows:

AsOn July ~~of the end of the period covered by this annual report~~2, we2021 ~~have carried out an evaluation of~~ the ~~effectiveness of the design and operation of the~~ Company’s ~~disclosure~~Board ~~controls~~of ~~and~~Directors ~~procedures~~designated ina ~~accordance~~class ~~with~~of ~~Rule~~10,000,000 ~~13a-15~~shares ~~under the Securities Exchange Act~~ of ~~1934.~~Series ~~This~~A ~~evaluation~~Preferred stock was ~~carried~~a ~~out~~par ~~under the supervision and with the participation~~ value of ~~the~~$0.001. ~~Company’s~~On ~~management~~July 16, ~~including~~2021 the ~~Company’s~~Board ~~President~~of ~~and~~Directors ~~Chief~~hereby ~~Executive~~approves ~~Officer~~issuing ~~and~~to ~~Chief~~Custodian ~~Financial~~Ventures ~~Officer.~~LLC, ~~Based~~a ~~upon~~Wyoming ~~that~~limited-liability ~~evaluation~~company,10,000,000 shares ~~the~~of ~~Company’s~~Series ~~Chief~~A ~~Executive~~Preferred ~~Officer~~Stock ~~and~~in ~~Chief Financial Officer concluded that~~ the ~~Company’s~~Corporation ~~disclosure~~for ~~controls~~par ~~and~~value, ~~procedures are effective~~ as atrepayment ~~the end~~ of ~~the~~funds ~~period~~loaned ~~covered~~to ~~by this report. There have been no changes in our internal controls over financial reporting that occurred during~~ the ~~period~~Company ~~covered~~ by ~~this~~Custodian ~~report that have materially affected~~Ventures, LLC, orand ~~are~~for ~~reasonably~~services ~~likely~~performed. toAs ~~materially~~of ~~affect~~June ~~our~~30, ~~internal~~2021 ~~controls~~the ~~over~~loans ~~financial~~amounted ~~reporting~~to $9,620.

~~Disclosure~~The holders ~~controls~~of ~~and~~the ~~procedures~~Series A Preferred Stock, shall have conversion rights as follows (the “Conversion Rights”), the holder of issued and ~~other~~outstanding ~~procedures~~shares ~~that~~of ~~are~~Series ~~designed~~A toPreferred ~~ensure~~Stock ~~that~~shall ~~information~~be ~~required~~entitled to beconvert ~~disclosed~~the inSeries ~~our~~A ~~reports~~Preferred ~~filed~~Stock, orat ~~submitted~~the ~~under~~option of the ~~Securities~~holder(s) ~~Exchange~~thereof, ~~Act~~at any time after the date of ~~1934~~issuance isof ~~recorded,~~such ~~processed~~shares, ~~summarized~~at ~~and~~the ~~reported,~~office ~~within~~of the ~~time~~Corporation ~~period~~or ~~specified~~any intransfer ~~the~~agent for ~~Securities~~such ~~and~~stock, ~~Exchange~~into ~~Commission’s~~such ~~rules~~number of fully paid and ~~forms.~~nonassessable ~~Disclosure~~shares ~~controls~~of Common Stock that are equal to ninety percent (90%), post conversion, of the total number of issued and ~~procedures~~outstanding ~~include~~shares of Common Stock of the Corporation, ~~without~~if ~~limitation~~all Series A Preferred Stock are converted (the “Conversion Shares”), ~~controls~~with ~~and~~each ~~procedures~~share ~~designed~~of toSeries ~~ensure~~A ~~that~~Preferred ~~information~~Stock ~~required~~so converted to be ~~disclosed~~converted ininto ~~our~~the number ~~reports~~of ~~filed~~common ~~under~~shares equal to the ~~Securities~~Conversion ~~Exchange~~Shares ~~Act~~multiplied by the quotient of ~~1934~~the isnumber ~~accumulated~~of ~~and~~the ~~communicated~~shares toof ~~management~~Series ~~including~~A ~~our~~Preferred ~~President~~Stock converted ~~and~~by ~~Chief~~a ~~Executive~~holder ~~Officer,~~divided toby ~~allow~~the ~~timely~~number ~~decisions~~of ~~regarding~~all ~~required~~Series ~~disclosure~~A Preferred Stock issued and outstanding.

~~Our~~Based on ~~management,~~the ~~including~~conversion ~~our~~formula ~~principal~~described ~~executive officer and principal financial officer~~above, ~~does~~each ~~not~~share ~~expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. Further, the design~~ of aSeries ~~control~~A ~~system~~Preferred ~~must~~Stock ~~reflect~~is ~~the~~convertible ~~fact~~into ~~that there are resource constraints and the benefits of controls must be considered relative to their costs~~214.05 ~~Due~~shares ~~to the inherent limitations in all control systems, no evaluation~~ of ~~controls~~common ~~can~~stock ~~provide absolute assurance that all control issues and instances~~ as of ~~fraud,~~July ~~if any~~16, ~~have been detected.~~2021

~~Management’s report on internal control over financial reporting~~F-10

~~Management~~ITEM ~~is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) of the Exchange Act of 1934~~9. ~~Management~~CHANGES ~~has~~IN ~~assessed~~AND ~~the~~DISAGREEMENTS ~~effectiveness~~WITH ofACCOUNTANTS ~~our~~ON ~~internal~~ACCOUNTING ~~control~~AND ~~over~~FINANCIAL financial reporting as at December 31, 2014, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements in accordance with generally accepted accounting principles; providing reasonable assurance that receipts and expenditures are made in accordance with authorizations of management and our directors; and providing reasonable assurance that unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements would be prevented or detected on a timely basis. As a result of this assessment, management concluded that, as of December 31, 2014, our internal control over financial reporting was effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. However, because of its inherent limitations, internal control over financial reporting may not provide absolute assurance that a misstatement of our financial statements would be prevented or detected.DISCLOSURE

22Not applicable

~~This~~ITEM ~~annual report does not include an attestation report of our independent auditors regarding internal control over financial reporting~~9A. ~~Management’s~~CONTROLS ~~report~~AND ~~was not subject to attestation by our independent auditors pursuant to temporary rules of the SEC that permit the Company to provide only management’s report in this annual report.~~PROCEDURES

~~ITEM~~Evaluation 9Bof -Disclosure ~~OTHER~~Controls ~~INFORMATION~~and Procedures.

~~None~~Our management is responsible for establishing and maintaining a system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

~~PART~~Management’s ~~III~~Report on Internal Control over Financial Reporting.

~~ITEM~~Our 10management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) ~~DIRECTORS~~and ~~AND~~15d-15(f) ~~EXECUTIVE~~under ~~OFFICERS~~the ~~AND~~Exchange ~~CORPORATE~~Act. Our ~~GOVERNANCE~~internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

~~Directors~~● pertain to the maintenance of records that, in reasonable detail, accurately and ~~Executive~~fairly ~~Officers~~reflect the transactions and dispositions of our assets; ● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, ~~Promoters~~and that our receipts and ~~Control~~expenditures ~~Persons~~are being made only in accordance with authorizations of our management and directors; and ● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

~~All~~Because ~~directors~~ of ~~the~~its ~~Company~~inherent ~~hold~~limitations, ~~office~~internal control ~~until~~over ~~the~~financial ~~next~~reporting ~~annual~~may ~~meeting~~not ofprevent ~~our~~or ~~shareholders~~detect ~~and~~misstatements. ~~until such director’s successor is elected and has been qualified~~Also, orprojections ~~until~~of ~~such~~any ~~director’s~~evaluation ~~earlier~~of ~~death,~~effectiveness ~~resignation~~to orfuture periods ~~removal.~~are ~~The~~subject ~~following~~to ~~table sets forth~~ the ~~names,~~risk ~~positions~~that ~~and~~controls ~~ages~~may ofbecome ~~our~~inadequate ~~executive~~because ~~officers and directors. Our board~~ of ~~directors~~changes ~~elects~~in ~~officers~~conditions, ~~and~~or ~~their~~that ~~terms of office are at~~ the ~~discretion~~degree of ~~our~~compliance with ~~board~~policies ofor ~~directors~~procedures may deteriorate.

	Position Held		Appointed or
Name	with the Company	Age	Elected
David Dugas	President and Director	58	December 29, 2008
Tony Primeaux	Director	59	December 29, 2008

Our management assessed the effectiveness of our internal control over financial reporting based on the parameters set forth above and has concluded that as of December 31, 2020, our internal control over financial reporting was not effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles as a result of the following material weaknesses:

~~Business~~● ~~Experience~~The Company does not have sufficient segregation of duties within accounting functions due to only having one officer and limited resources. ● The Company does not have an independent board of directors or an audit committee. ● The Company does not have written documentation of our internal control policies and procedures. ● All of the Company’s financial reporting is carried out by a financial consultant.

~~The~~We ~~following~~plan isto arectify ~~brief~~these ~~account~~weaknesses ofby ~~the~~implementing an ~~education~~independent ~~and~~board ~~business~~of ~~experience~~directors, ~~during~~establishing atwritten ~~least~~policies ~~the~~and ~~past~~procedures ~~five~~for ~~years of~~ our ~~directors~~internal ~~and~~control ~~executive~~of ~~officers,~~financial ~~indicating their principal occupations during that period~~reporting, and ~~the~~hiring additional ~~name~~accounting ~~and~~personnel ~~principal~~at ~~business~~such oftime ~~the~~as ~~organizations~~we incomplete ~~which~~a ~~such~~reverse ~~occupation~~merger ~~and~~or ~~employment~~similar ~~were~~business ~~carried out~~acquisition.

~~David~~Changes ~~Dugas-~~in ~~President~~Internal ~~and~~Control ~~Director~~over Financial Reporting.

~~Mr.~~There ~~Dugas~~have ~~has~~been 36no ~~years~~change ~~of professional engineering and management experience. Early~~ in ~~his~~our ~~career,~~internal ~~Mr.~~control over ~~Dugas~~financial ~~gained~~reporting ~~petroleum~~during ~~engineering and senior management experience in~~ the ~~oil~~year ~~and~~December ~~gas industry holding positions of increasing responsibility in the areas of production~~31, ~~drilling~~2020 and reservoir exploitation along with property and acquisition evaluations, operations management and completion design with Chevron and Texas Pacific Oil and Gas. Mr. Dugas continued his management and engineering development as an owner and operator of several service companies supplying equipment, goods and consulting services to the oil and gas industry in North and South America, West Africa, and the Far East. Mr. Dugas was a founding member and co-owner of the company that ~~became~~has ~~Ocean~~materially ~~Energy~~affected, aor ~~NYSE~~is ~~listed~~reasonably ~~company~~likely with a multi-billion dollar market capitalization. Mr. Dugas was the Executive Vice-President of the company with responsibility for the property acquisition, management, production and reservoir engineering functions of the company. In November, 2006, Mr. Dugas founded ESP Resources, Inc. to ~~provide~~materially ~~petrochemicals and related services to the Oil and Gas industry in the Gulf of Mexico~~affect, our ~~Louisiana,~~internal ~~Texas,~~control ~~Mississippi,~~over ~~and~~financial ~~Oklahoma regions through a wholly owned subsidiary, ESP Petrochemicals, Inc~~reporting.

~~Mr.~~ITEM ~~Dugas received his B~~9B.S. ~~degree~~OTHER ~~in Petroleum Engineering from the University of Louisiana at Lafayette, graduating with highest honors~~INFORMATION. He is a member of the Society of Petroleum Engineers, a lifetime member of Phi Beta Kappa, a member of Tau Beta Pi National Engineering Society and is a licensed professional petroleum engineer in the state of Louisiana.

23None.

~~Tony Primeaux-Director~~13

~~Mr.~~PART Primeaux has 38 years of professional experience in the value-added specialty chemical market. Mr. Primeaux began his career as a service and sales technician for Oilfield Chemicals, Inc., a large petrochemical supplier to oil and gas companies along the Gulf Coast and was subsequently promoted to Operations Manager of the Company. Mr. Primeaux became an owner/operator of Chemical Control, Inc., a specialty chemical company, in the 1980’s that was sold to Coastal Chemicals, a larger competitor, after 11 years of successful operations. Mr. Primeaux has expertise in advanced interpretation and application petrochemical technologies having designed chemical programs to achieve maximum effectiveness in some of the most hostile environments in the operating world of production operations for the oil and gas industry. III

~~Mr.~~ITEM ~~Primeaux founded ESP Petrochemicals, Inc~~10. in March 2007 and currently serves as President of the organization. ESP Petrochemicals became a wholly owned subsidiary of ESP Resources in June 2007. Mr. Primeaux received a degree in Business Management from the University of Louisiana at Lafayette and has furthered his education attending numerous industry-sponsored courses in quality control and implementationDIRECTORS, ~~strategic~~EXECUTIVE ~~planning~~OFFICERS ~~and~~AND ~~marketing,~~CORPORATE ~~and drilling, production and work-over chemistry programs.~~GOVERNANCE

~~Family~~The ~~Relationships~~following table sets forth the names and positions of our executive officers and directors. Directors will be elected at our annual meeting of stockholders and serve for one year or until their successors are elected and qualify. Officers are elected by the Board and their terms of office are, except to the extent governed by employment contract, at the discretion of the Board.

There are no family relationships among any directors or executive officers of the Company.

Name		Age		Positions
David Lazar		31		Director, Chief Executive Officer, Treasurer, and Secretary

~~Involvement~~David Lazar, 31, has been CEO and Chairman of the Company since January 7, 2021. David Lazar is a private investor. Mr. Lazar has been a partner at Zenith Partners International since 2013, where he specializes in ~~Certain~~research ~~Legal~~and ~~Proceedings~~development, sales, and marketing. From 2014 through 2015, David was the Chief Executive Officer of Dico, Inc., which was then sold to Peekay Boutiques. Since February of 2018, Mr. Lazar has been the managing member of Custodian Ventures LLC, where he specializes in assisting distressed public companies. Since March 2018, David has acted as the managing member of Activist Investing LLC, which specializes in active investing in distressed public companies. David has a diverse knowledge of financial, legal and operations management; public company management, accounting, audit preparation, due diligence reviews and SEC regulations.

Our directors, executive officers and control persons have not been involved in any of the following events during the past five years:

MARKET			FROM		TO
NAME OF ISSUER	TRADED ON	POSITION(S) HELD	MM	YYYY	MM	YYYY
Rarus Technologies, Inc. (RARS)	OTCBB	CEO, Director	01	2018	05	2018
DRS, Inc. (DRSX)		CEO, Director	07	2018	11	2018
Energenx, Inc. (EENX)	OTC	CEO	03	2018	07	2018
Melt, Inc. (MLTC)	OTC	Director	10	2018	03	2019
Nevtah Capital Management Corporation (NTAH)	OTC – US	President, Chief Executive Officer & Secretary	03	2019	05	2020
Mediashift, Inc. (MSHFQ)	OTC	Chairman, President, CEO, CFO & Secretary	03	2019	09	2019
Sollensys Corp. (SOLS)	OTC Market	President, CEO, Secretary & Director	12	2019	08	2020
Foru Holdings, Inc (FORU)	OTC Markets	Chairman, President, CEO, CFO & Secretary	03	2020	Current
Superbox, Inc (SBOX)	OTC Markets	Chairman, President, CEO, CFO & Secretary	03	2020	Current
Petrone Worldwide, Inc (PFWIQ)	OTC Markets	Chairman, President, CEO, CFO & Secretary	03	2020	Current
Gushen, Inc (GSHN)	OTC – US	Chairman, President, CEO, CFO & Secretary	03	2020	12	2020
Reliance Global Group Inc. (RELI)	OTC	Director	03	2020	Current
GHAR, Inc. (GHAR)	OTC Markets	Chairman, President, CEO, CFO & Secretary	03	2020	Current
PhoneBrasil (PHBR)	OTC Markets	Chairman, President, CEO, CFO & Secretary	08	2020	12	2020
XXStream Entertainment, Inc.	OTC Markets	Chairman, President, CEO, CFO & Secretary	07	2020	12	2020
Adorbs Inc.	N/A	Chairman, President, CEO, CFO & Secretary	07	2020	Current
China Botanic Pharmaceutical, Inc(CBPI)	OTC Markets	Chairman, President, CEO, CFO & Secretary	02	2021	Current
C2E Energy Inc. (OOGI)	OTC Markets	Chairman, President, CEO, CFO & Secretary	02	2021	06	2021
Finotec (FTGI)	OTC Markets	Chairman, President, CEO, CFO & Secretary	03	2020	01	2021
3D Makerjet Inc. (MRJT)	OTC Markets	Chairman, President, CEO, CFO & Secretary	07	2020	03	2021

1.David ~~any~~Lazar ~~bankruptcy petition filed by or against any business of which such person~~ was aalso ~~general~~the ~~partner~~sole ~~or executive~~ officer ~~either~~and ~~at the time~~ director of ~~the~~Shentang ~~bankruptcy~~International, ~~or within two years prior to that time; 2~~Inc. ~~any~~(“Shentang”), ~~conviction~~which inis a ~~criminal~~blank ~~proceeding~~check ~~or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); 3~~company. ~~being~~On ~~subject~~April ~~to any order~~29, ~~judgment~~2020, orPlentiful ~~decree~~Limited, ~~not~~a ~~subsequently reversed~~Samoan company, ~~suspended~~purchased ~~or vacated~~10,000,000 ofshares ~~any court~~ of ~~competent~~Shentang’s ~~jurisdiction~~preferred stock, ~~permanently~~par orvalue ~~temporarily~~$0.001 ~~enjoining,~~per ~~barring~~share, ~~suspending~~representing or98% ~~otherwise~~of ~~limiting~~the ~~his~~voting ~~involvement~~stock, from inCustodian ~~any~~Ventures ~~type~~for ~~of business~~$225,000. ~~securities~~This orconcluded ~~banking activities; or 4~~Mr. ~~being~~Lazar’s ~~found~~association bywith aShentang. ~~court~~A ofbusiness ~~competent~~combination ~~jurisdiction~~has ~~(in~~yet ~~a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission~~ to ~~have~~occur. Shentang ~~violated~~has anot ~~federal~~registered orany ~~state~~offerings ~~securities~~under ~~or commodities law, and~~ the ~~judgment~~Securities ~~has not been reversed, suspended, or vacated~~Act.

~~Section~~David 16Lazar was also the sole officer and director of Guozi Zhongyu Capital Holdings (aformerly Melt Inc.) ~~Beneficial~~(“Guozi”), ~~Ownership~~which ~~Compliance~~was a blank check company. On February 27, 2019, Zhicheng RAO, purchased 2,185,710,000 shares of Guozi’s common stock, par value $0.00001 per share, from Custodian Ventures for $325,000, representing 99% of the voting stock. This concluded Mr. Lazar’s association with Guozi. Guozi has not registered any offerings under the Securities Act.

Section 16(a) of the Exchange Act of 1934 requires our executive officers and directors, and persons who own more than 10% of our common stock, to file reports regarding ownership of, and transactions in, our securities with the Securities and Exchange Commission and to provide us with copies of those filings. Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during the year ended December 31, 2014, all filing requirements applicable to our officers, directors and greater than 10% percent beneficial owners complied with such regulations.14

~~Code~~David Lazar was also the sole officer and director of ~~Ethics~~Cang Bao Tian Xia International Art Trade Center Inc. (formerly Zhongchai Machinery, Inc.) (“Cang”), which is a blank check company. On December 16, 2018, Xingtao Zhou and Yaqin Fu purchased 3,096,200 shares of common stock and 10,000,000 shares (the “Shares”) of preferred stock, each par value $0.001 per share, representing approximately 99% of the voting capital, from Custodian Ventures for $375,000. This concluded Mr. Lazar’s association with Cang. A business combination has yet to occur. Cang has not registered any offerings under the Securities Act.

~~Effective~~Except ~~August~~for 17GHAR, ~~2007~~Inc, ~~the~~Adorbs, ~~Company’s~~Inc. ~~board of directors adopted a Code of Business Conduct~~ and ~~Ethics~~Reliance Global ~~that~~Group ~~applies to~~Inc., ~~among~~Mr. ~~other~~Lazar ~~persons,~~took ~~the~~control ~~Company’s~~of ~~President~~all ~~(being~~of ~~our~~the ~~principal~~companies ~~executive~~listed ~~officer,~~by ~~principal~~becoming ~~financial~~the ~~officer~~Court-appointed ~~and~~custodian ~~principal~~through ~~accounting~~Custodian ~~officer),~~Ventures LLC ~~as well as persons performing similar functions. As adopted, our Code of Business Conduct~~ and ~~Ethics~~entity ~~sets~~in ~~forth~~which ~~written~~he ~~standards~~is ~~that~~the ~~are~~managing ~~designed to deter wrongdoing and to promote:~~member.

24Election of Directors and Officers

1.	honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
2.	full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the Securities and Exchange Commission and in other public communications made by us;

Directors are elected to serve until the next annual meeting of stockholders and until their successors have been elected and qualified. Officers are appointed to serve until the meeting of the Board following the next annual meeting of stockholders and until their successors have been elected and qualified.

3.	compliance with applicable governmental laws, rules and regulations;
4.	the prompt internal reporting of violations of the Code of Business Conduct and Ethics to an appropriate person or persons identified in the Code of Business Conduct and Ethics; and

Audit Committee

5.We ~~accountability~~do ~~for~~not ~~adherence~~have toany committees of the ~~Code~~Board ofas we ~~Business~~only ~~Conduct~~have ~~and~~one ~~Ethics~~director.

~~Our~~Director Code of Business Conduct and Ethics requires, among other things, that all of the Company’s personnel shall be accorded full access to our President with respect to any matter which may arise relating to the Code of Business Conduct and Ethics. Further, all of the Company’s personnel are to be accorded full access to the Company’s board of directors if any such matter involves an alleged breach of the Code of Business Conduct and Ethics by our President. Independence

InWe ~~addition,~~do ~~our~~not ~~Code~~currently ~~of Business Conduct and Ethics emphasizes that all employees, and particularly managers and/or supervisors,~~ have aany ~~responsibility~~independent ~~for maintaining financial integrity within the Company, consistent with generally accepted accounting principles, and federal, provincial and state securities laws~~directors. We ~~Any~~evaluate ~~employee~~independence ~~who becomes aware of any incidents involving financial or accounting manipulation or other irregularities, whether~~ by ~~witnessing~~ the ~~incident~~standards orfor ~~being~~director ~~told~~independence ofestablished ~~it, must report it to his or her immediate supervisor or to the Company’s President. If the incident involves an alleged breach of the Code of Business Conduct and Ethics~~ by ~~the~~Marketplace ~~President,~~Rule ~~the incident must be reported to any member of our board of directors. Any failure to report such inappropriate or irregular conduct of others is to be treated as~~ 5605(a)(2) ~~severe disciplinary matter. It is against the Company policy to retaliate against any individual who reports in good faith the violation or potential violation~~ of the ~~Company’s~~Nasdaq ~~Code~~Stock ~~of Business Conduct and Ethics~~Market, Inc.

~~Our~~Board ~~Code~~Leadership of Business Conduct and Ethics was filed as an exhibit with our annual report on Form 10-KSB filed with the Securities and Exchange Commission on August 28, 2007. We will provide a copy of the Code of Business Conduct and Ethics to any person without charge, upon request. Requests can be sent to: ESP Resources Inc., 1003 South Hugh Wallis Road, Suite G-1, Lafayette, Louisiana 70508.Structure

~~Nomination~~We ~~Process~~have chosen to combine the Chief Executive Officer and Board Chairman positions since one person is our sole officer and director.

AsCode of December 31, 2014, we did not effect any material changes to the procedures by which our shareholders may recommend nominees to our board of directors. Our board of directors does not have a policy with regards to the consideration of any director candidates recommended by our shareholders. Our board of directors has determined that it is in the best position to evaluate the Company’s requirements as well as the qualifications of each candidate when the board considers a nominee for a position on our board of directors. If shareholders wish to recommend candidates directly to our board, they may do so by sending communications to the President of the Company at the address on the cover of this annual report.Ethics

~~Committees~~Our Board has not adopted a Code of Ethics due to the ~~Board~~Company’s size and lack of employees. As of the date of this Report, our sole director is also our Chief Executive Officer.

~~All~~Delinquent ~~proceedings~~Section of our board of directors were conducted by resolutions consented to in writing by all the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at 16(a) meeting of the directors are, according to the corporate laws of the State of Nevada and the bylaws of the Company, as valid and effective as if they had been passed at a meeting of the directors duly called and held.Reports

~~The~~Section ~~Company~~16(a) ~~currently~~of ~~does~~the ~~not~~Exchange ~~have~~Act ~~nominating,~~requires ~~compensation~~the Company’s ordirectors, ~~audit~~executive ~~committees~~officers, orand ~~committees~~persons ~~performing~~who ~~similar~~own ~~functions~~more ~~nor~~than ~~does~~10% of the Company’s ~~have~~Common aStock ~~written~~to ~~nominating,~~file ~~compensation~~initial orreports of ~~audit~~ownership ~~committee~~and ~~charter.~~changes ~~Our~~in ~~board~~ownership of ~~directors~~the ~~does~~Company’s ~~not~~Common ~~believe~~Stock ~~that~~with itthe isSEC. ~~necessary~~These individuals are required by the regulations of the SEC to ~~have~~furnish ~~such~~us ~~committees~~with ~~because~~copies itof ~~believes~~all ~~that~~Section 16(a) forms they file. Based solely on a review of the ~~functions~~copies of ~~such~~the ~~committees~~forms ~~can~~furnished to beus ~~adequately~~none ~~performed~~of byCompany’s ~~our~~directors, ~~board~~executive officers, and persons who own more than 10% of ~~directors~~the Company’s Common Stock failed to comply with Section 16(a) filing requirements.

25ITEM 11. EXECUTIVE COMPENSATION

The ~~Company~~following ~~does~~information ~~not~~is ~~have~~related ~~any~~to ~~defined~~the ~~policy~~compensation paid, distributed, or ~~procedure~~accrued ~~requirements~~by ~~for~~us ~~shareholders to submit recommendations or nominations~~ for ~~directors. The board of directors believes that, given~~ the ~~early~~fiscal ~~stage~~year ofended ~~our~~December ~~development~~31, a2020 ~~specific~~to ~~nominating policy would be premature and of little assistance until~~ our ~~business~~Chief ~~operations~~Executive ~~develop~~Officer to(principal aexecutive ~~more~~officer) during ~~advanced~~the ~~level.~~last ~~The~~fiscal ~~Company~~year ~~does~~and ~~not~~the ~~currently~~two ~~have~~other ~~any~~most ~~specific~~highly orcompensated ~~minimum~~executive ~~criteria~~officers ~~for~~serving ~~the~~as ~~election~~ of ~~nominees to~~ the ~~board~~end of ~~directors~~the ~~and~~last wefiscal doyear whose ~~not~~compensation ~~have~~exceeded ~~any specific process or procedure for evaluating such nominees. The board of directors assesses all candidates~~$100,000 ~~whether~~(the ~~submitted~~“Named byExecutive ~~management or shareholders, and makes recommendations for election or appointment.~~Officers”):

AWe ~~shareholder~~did ~~who~~not ~~wishes~~pay toany ~~communicate~~compensation ~~with our board of directors may do so by directing a written request addressed~~ to our ~~President,~~Chief atExecutive Officers (the ~~address~~“Named ~~appearing~~Executive onOfficers”) during the ~~first~~last ~~page~~two offiscal ~~this annual report~~years.

~~Audit~~Named ~~Committee~~Executive ~~Financial~~Officer ~~Expert~~Employment Agreements

~~Our board of directors has determined that we do not have a board member that qualifies as an “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-B~~None.

WeTermination believe that our board of directors is capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. The board of directors of the Company does not believe that it is necessary to have an audit committee because the Company believes that the functions of an audit committee can be adequately performed by our board of directors. In addition, we believe that retaining an independent director who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development.Provisions

~~ITEM~~As 11of -the ~~EXECUTIVE~~date ~~COMPENSATION~~of this Report, we have no contract, agreement, plan, or arrangement, whether written or unwritten, that provides for payments to a Named Executive Officer at, following, or in connection with any termination, including without limitation resignation, severance, retirement or a constructive termination of a Named Executive Officer, or a change in control of the Company or a change in the Named Executive Officer’s responsibilities, with respect to each Named Executive Officer.

~~Executive Compensation~~15

~~The~~Outstanding ~~following~~Equity ~~table~~Awards summarizes the compensation of each name executive for the fiscal years ended December 31, 2014 and 2013 awarded to or earned by (i) each individual serving as our principal executive officer and principal financial officer of the Company and (ii) each individual that served as an executive officer of the Company at ~~the~~Fiscal ~~end~~Year ~~of such fiscal years who received compensation in excess of $100,000.~~End

26As of December 31, 2020 none of our Named Executive Officers held any unexercised options, stock that have not vested, or other equity incentive plan awards.

~~SUMMARY~~Director ~~COMPENSATION TABLE~~Compensation

Name and Principal Position	Year	Salary ($)		Bonus ($)		Stock Awards ($)		Option ($)		Non- Equity Incentive Plan Compensation ($)		Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)		All Other Compensation ($)		Total ($)
David Dugas President and Director	2013	$	176,167		-	$	-	$	-		-	$	25,667		-	$	176,167
David Dugas President and Director	2014	$	156,000		-	$	280,000		-		-	$	44,000		-	$	480,000
Tony Primeaux Vice President and Director	2013	$	160,500		-		-		-		-	$	21,000		-	$	160,500
Tony Primeaux Vice President and Director	2014	$	138,711		-	$	280,000		-		-	$	36,000		-	$	454,711
William Cox (2)	2013		-		-		-		-		-		-		-		-
Jack Trotti, Executive International Sales (1)	2013	$	82,135		-		-		-		-		-		-	$	82,135

To date, we have not paid our director any compensation for services on our Board.

(1)	Mr. Trotti’s employment was terminated on May 15, 2013.
(2)	Mr. Cox resigned on May 15, 2013

Equity Compensation Plan Information

~~Equity~~The ~~Compensation~~Company ~~Plan~~does ~~Information~~not ~~and~~have ~~Stock~~any ~~Options~~securities authorized for issuance or outstanding under an equity compensation plan or equity compensation grants made outside of such a plan.

WeITEM do12. ~~not~~SECURITY ~~currently~~OWNERSHIP ~~have~~OF ~~any~~CERTAIN ~~equity~~BENEFICIAL ~~compensation~~OWNERS ~~plans~~AND orMANAGEMENT ~~any~~AND ~~outstanding~~RELATED ~~stock~~STOCKHOLDER ~~options.~~ MATTERS

~~Compensation~~The following table sets forth certain information regarding beneficial ownership of ~~Directors~~the Company’s Common Stock as of May 31, 2021, by (i) each person who is known by the Company to own beneficially more than 5% of any classes of outstanding Common Stock, (ii) each director of the Company, (iii) each of the Chief Executive Officers and the executive officers (collectively, the “Named Executive Officers”) and (iv) all directors and executive officers of the Company as a group based upon 11,020,000 shares outstanding.

We currently have no formal plan for compensating our directors for their services in their capacity as directors, although we may elect to issue stock options to such persons from time to time. Directors are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our board of directors. Our board of directors may award special remuneration to any director undertaking any special services on our behalf other than services ordinarily required of a director.

Name and Address of Beneficial Owners of Common Stock	Title of Class	Amount and Nature of Beneficial Ownership		% of Common Stock

David Lazar 1185 Avenue of the Americas, 3^rd Floor New York, New York 10036	Preferred Stock		10,000,000		90	%(a)
	Common Stock		1,331,360		Less than 1%
DIRECTORS AND OFFICERS – TOTAL (One Officer and Director)			11,331,360		90	%

(a) Mr. Lazar is the managing director of Custodian Ventures who holds 10,000,000 shares of Series A Preferred Stock. Each share of preferred share held is convertible into 214.05 shares of common stock. The ownership percentage is calculated as if the preferred stock was converted to common stock.

David Dugas 207 Waterford Drive Lafayette, La 70503	Common stock		43,000,000		18	%

~~Pension,~~Not ~~Retirement or Similar Benefit Plans~~applicable.

~~There~~ITEM ~~are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers~~14. WePRINCIPAL ~~have~~ACCOUNTANT noFEES ~~material~~AND bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.SERVICES

~~ITEM~~The 12following -table ~~SECURITY~~shows ~~OWNERSHIP~~the OFfees ~~CERTAIN~~paid ~~BENEFICIAL~~or ~~OWNERS~~accrued for ~~AND~~the ~~MANAGEMENT~~audit ~~AND~~and ~~RELATED~~other ~~STOCKHOLDER~~services ~~MATTERS~~provided by our independent auditors for the years ended:

The following table shows ownership of our common stock on December 31, 2014, based on 237,830,249 shares of common stock outstanding, (i) by each Director and Named Executive Officer; (ii) all of our Directors and Named Executive Officers as a group and (iii) each person or entity known to us to own beneficially more than 5% of our capital stock. Except to the extent indicated in the footnotes to the following table, the person or entity listed has sole voting and dispositive power with respect to the shares that are deemed beneficially owned by such person or entity, subject to community property laws, where applicable:

	December 31, 2020
Audit fees	$	-
Total fees paid or accrued to our principal accountant	$	-

Name	Shares of Common Stock(2)		Rights to Acquire Common Stock (3)		Total Shares Beneficially Owned		Percentage of Outstanding Common Stock(4)
Directors and Named Executive Officers
David Dugas (1)(5)		45,971,880		19,800,000		65,771,880		27.7	%
Tony Primeaux (1)(5)		31,837,700		26,400,000		58,237,700		24.5	%
All current executive officers and directors as a group (4) persons)		77,809,580		45,200,000		124,009,580		52.2	%
5% Beneficial Owners
None		-		-		-		-

(1)	The address for purposes of this table is the Company’s address: 1003 South Hugh Wallis Road, Suite G-1, Lafayette, Louisiana 70508.
(2)	This number includes shares the Officer or Director is deemed to be the “beneficial owner” of under Rule 16a-1 of the Securities Exchange Act of 1934, which includes the shares owned by a spouse and/or child(ren) living in the same household.
(3)	Unless otherwise indicated, the Company believes that all persons named in the table have sole voting and investment power with respect to all shares of the common stock beneficially owned by them. A person is deemed to be the beneficial owner of securities which may be acquired by such person within 60 days from the date indicated above upon the exercise of options, warrants or convertible securities. Each beneficial owner’s percentage ownership is determined by assuming that options, warrants or convertible securities that are held by such person (but not those held by any other person) and which are exercisable within 60 days of the date indicated above, have been exercised.
(4)	Based the number of shares of our common stock outstanding on or around the filing date, shares of common stock subject to options, which are currently exercisable and able to be included for the purposes of computing the percentage of ownership of such person but are not treated as outstanding for the purposes of computing the percentage of any other person.
(5)	On August 15, 2014 the Company granted 28,000,000 shares of restricted stock to David Dugas, Chief Executive Officer and 28,000,000 shares of restricted stock to Tony Primeaux Vice President for their provision of personal guarantees on the Transfac financing agreement.

PART IV

~~Change~~ITEM in15. ~~Control~~EXHIBITS AND FINANCIAL STAATEMENT SCHEDULES

We are not aware of any arrangement that might result in a change in control of the Company in the future.

31.1	Certification of Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act

32.1	Certification of Chief Executive Officer and Chief Financial Officer Under Section 1350 as Adopted Pursuant Section 906 of the Sarbanes-Oxley Act

28101.INS XBRL Instance Document (furnished herewith)* 101.SCH XBRL Taxonomy Extension Schema Document (furnished herewith)* 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document (furnished herewith)* 101.DEF XBRL Taxonomy Extension Definition Linkbase Document (furnished herewith)* 101.LAB XBRL Taxonomy Extension Label Linkbase Document (furnished herewith)* 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document (furnished herewith)*

~~Equity Plan Compensation Information~~17

~~The Company does not currently have a stock option plan or other form of equity plan.~~SIGNATURES

~~ITEM~~In 13accordance -with ~~CERTAIN~~the ~~RELATIONSHIPS~~requirements ~~AND~~of ~~RELATED~~the ~~PARTY~~Exchange Act, ~~TRANSACTIONS~~the registrant caused this report to be signed on its behalf by the undersigned, ~~AND~~thereunto ~~DIRECTOR~~duly ~~INDEPENDENCE~~authorized.

Except as described below, no director, executive officer, principal shareholder holding at least 5% of our common shares, or any family member thereof, had any material interest, direct or indirect, in any transaction, or proposed transaction, during the year ended December 31, 2014, in which the amount involved in the transaction exceeded or exceeds the lesser of $120,000 or 1% of the average of our total assets at the yearend for the last three completed fiscal years.

	ESP RESOURCES, INC.

Dated: July 29, 2021	By:	/s/ David Lazar
		David Lazar Chief Executive Officer (Principal Executive Officer)

~~As of December 31, 2014 and December 31, 2013, the Company had balances due to related parties as follows;~~18

	December 31,
	2014		2013
Due to officer	$	356,583	$	419,382
Due to ESP Enterprises	$	55,790	$	55,790

Corporate Governance

We currently act with two directors consisting of David Dugas and Tony Primeaux. We do not have an “independent director” as that term is defined under Rule 5605(a)(2) of the NASDAQ Listing Rules. As we are not presently required to comply with the NASDAQ Listing Rules, the Company has elected to avoid incurring the substantial costs associated with adopting such measures.

We do not have a standing audit, compensation or nominating committee, but our entire board of directors’ acts in such capacities. We believe that the members of our board of directors are capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. The board of directors of the Company does not believe that it is necessary to have a standing audit, compensation or nominating committee because we believe that the functions of such committees can be adequately performed by the board of directors. In addition, we believe that retaining one or more additional directors who would qualify as independent as defined in Rule 5605(a)(2) of the NASDAQ Listing Rules would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact the we have not generated any revenues from operations to date.

ITEM 14 - PRINCIPAL ACCOUNTING FEES AND SERVICES

The aggregate fees billed or to be billed Turner Stone & Company, LLP for professional services rendered for the audit of our annual financial statements included in our Form 10-K during the fiscal years ended December 31, 2014 were $60,000. The aggregate fees billed or to be billed by MaloneBailey, LLP for professional services rendered for the audit of our annual financial statements included in our Form 10-K during the fiscal years ended December 31, 2013 were $86,000 are as follows:

Type of Fees	Year Ended 2014		Year Ended 2013
Audit Fees	$	60,000	$	86,000
Audit-Related Fees		-		-
Tax Fees		-		-
All Other Fees		-		-
Total	$	60,000	$	86,000

Audit Fees

This category includes fees associated with our annual audit and the reviews of our quarterly reports on Form 10-Q. This category also includes fees associated with advice on audit and accounting matters that arose during, or as a result of, the audit or the review of our interim financial statements, statutory audits, the assistance with the review of our SEC registration statements and the audit of our internal control over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002.

Audit-Related Fees

There were no fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the Company's financial statements.

Tax Fees

This category includes fees for tax planning for merger and acquisition activities, tax consultations, the review of income tax returns and assistance with state tax examinations. We did not engage Turner Stone & Company, LLP or MaloneBailey, LLP to provide any tax services for the years ended December 31, 2014 and 2013.

All Other Fees

Our board of directors, who acts as our audit committee, has adopted a policy governing the pre-approval by the board of directors of all services, audit and non-audit, to be provided to the Company by our independent auditors. Under the policy, the board or directors has pre-approved the provision by our independent auditors of specific audit, audit related, tax and other non-audit services as being consistent with auditor independence. Requests or applications to provide services that require the specific pre-approval of the board of directors must be submitted the board of directors by the independent auditors, and the independent auditors must advise the board of directors as to whether, in the independent auditor’s view, the request or application is consistent with the Securities and Exchange Commission’s rules on auditor independence.

The board of directors has considered the nature and amount of the fees billed by Turner Stone & Company, LLP or MaloneBailey, LLP and believes that the provision of the services for activities unrelated to the audit is compatible with maintaining the independence of the firm.

PART IV

ITEM 15 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) During the quarter ending December 31, 2008, the Company filed the following Exhibits and Form 8Ks: October 17, 2008, filed an 8K for: Item 1.02, Termination of a Material Definitive Agreement November 5, 2008,filed an 8K for: Item 1.01 Entry into a Material Definitive Agreement, Item 2.01 Completion of Acquisition of Disposition of Assets, Item 9.01Agreement December 15, 2008, filed an 8K for: Item 8.01 Other Events, Item 9.01 Letter of Intent December 29, 2009, filed an 8K for: Item 4.01 Changes in Registrant’s Certifying Accountant, Item 9.01 Letter January 6, 2009, filed an 8K for: Item 1.01 Entry into a Material Definitive Agreement, Item 2.01 Completion of Acquisition of Disposition of Assets, Item 5.01 Changes in Control of the Registrant, Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Officers, Item 9.01 Stock Purchase Agreements

(b) Exhibits

Exhibit Number		Description
1.1		Licensing Agreement with Peter Hughes (incorporated by reference from our Registration Statement on Form SB-2 filed on April 18, 2006)
3.1		Articles of Incorporation (incorporated by reference from our Registration Statement on Form SB-2 filed on April 18, 2006)
3.2		Amended and Restated Bylaws (incorporated by reference from our Proxy Statement filed on January 24, 2013)
3.3		Articles of Merger filed with the Secretary of State of Nevada on September 19, 2007 and which is effective September 28, 2007 (incorporated by reference from our Current Report on Form 8-K filed on September 28, 2007)
3.4		Certificate of Change filed with the Secretary of State of Nevada on September 19, 2007 and which is effective September 28, 2007 (incorporated by reference from our Current Report on Form 8-K filed on September 28, 2007)
4.1		Regulation “S” Securities Subscription Agreement (incorporated by reference from our Registration Statement on Form SB-2 filed on April 18, 2006)
10.1		Share Purchase Agreement dated November 21, 2007 among the Company, Pantera Oil and Gas PLC, Aurora Petroleos SA and Boreal Petroleos SA (incorporated by reference from our Current Report on Form 8-K filed on November 26, 2007)
10.2		Form of Advisory Board Agreement (incorporated by reference from our Current Report on Form 8-K filed on February 4, 2008)
10.3		Equity Financing Agreement dated February 12, 2008 with FTS Financial Investments Ltd. (incorporated by reference from our Current Report on Form 8-K filed on February 15, 2008)
10.4		Return to Treasury Agreement dated February 26, 2008 with Peter Hughes (incorporated by reference from our Current Report on Form 8-K filed on February 28, 2008)
10.5		Amending Agreement dated March 17, 2008 with Artemis Energy PLC, Aurora Petroleos SA and Boreal Petroleos SA (incorporated by reference from our Current Report on Form 8- K filed on March 19, 2008)
10.6		Subscription Agreement dated February 28, 2008 with Trius Energy, LLC (incorporated by reference from our Quarterly Report on Form 10-QSB filed on April 14, 2008)
10.7		Joint Venture Agreement dated February 24, 2008 with Trius Energy, LLC (incorporated by reference from our Quarterly Report on Form 10-QSB filed on April 14, 2008)

10.8		Second Amending Agreement dated July 30, 2008 among the Company, Artemis Energy PLC (formerly Pantera Oil and Gas PLC), Aurora Petroleos SA and Boreal Petroleos SA (incorporated by reference from our Current Report on Form 8- K filed on August 5, 2008)
10.9		Amended and Restated Share Purchase Agreement dated September 9, 2008 among company, Artemis Energy PLC (formerly Pantera Oil and Gas PLC), Aurora Petroleos SA and Boreal Petroleos SA (incorporated by reference from our Annual Report on for 10-KSB filed on September 15, 2008)

10.10		Agreement dated October 31, 2008 with Lakehills Production, Inc. and a private equity drilling fund (incorporated by reference from our Current Report on Form 8-K filed on November 5, 2008)
10.11		Security Purchase Agreement for 16% Subordinated Convertible Debenture Agreement and warrants
10.12		Confidential Private Placement Memorandum for Accredited Investors Only dated May 15, 2012 and Warrant Agreement
10.13		Employment Agreement Robert Geiges as Chief Financial Officer dated January 4, 2013
14.1		Code of Ethics (incorporated by reference from our Annual Report on Form 10-KSB filed on August 28, 2007)
31.1*		Certification of Principal Executive Officer pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of 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 Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema
101.CAL*		XBRL Taxonomy Extension Calculation
101.DEF*		XBRL Taxonomy Extension Definition
101.LAB*		XBRL Taxonomy Extension Label
101.PRE*		XBRL Taxonomy Extension Presentation

_______

*Filed herewith

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ESP RESOURCES, INC.
Date: April 15, 2015	By:	/s/ David Dugas
		David Dugas
		Chief Executive Officer, President, Chief Financial Officer and Director
		(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: April 15, 2015	By:	/s/ David Dugas
		David Dugas
		President and Director

Date: April 15, 2015	By:	/s/ Tony Primeaux
		Tony Primeaux
		Director

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

ESP Resources, Inc.

Lafayette, Louisiana

We have audited the accompanying consolidated balance sheet of ESP Resources, Inc. and its subsidiaries (collectively, the “Company”) as of December 31, 2014 and the consolidated statement of operations, stockholders’ deficit, and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ESP Resources, Inc. and its subsidiaries as of December 31, 2014, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has incurred net losses through December 31, 2014 and has a working capital deficit as of December 31, 2014. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to this matter are also described in Note 2. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

/s/Turner, Stone & Company, LLP

www.turnerstone.com

Dallas, Texas

April 15, 2015

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

ESP Resources, Inc.

The Woodlands, Texas

We have audited the accompanying consolidated balance sheet of ESP Resources, Inc. and its subsidiaries (collectively, the “Company”) as of December 31, 2013, and the consolidated statement of operations, stockholders’ equity (deficit), and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statement referred to above present fairly, in all material respects, the financial position of ESP Resources, Inc. and its subsidiaries as of December 31, 2013, and the results of their operations and their cash flows for each of the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statement have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, The Company has incurred net losses through December 31, 2013 and has a working capital deficit as of December 31, 2013. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to this matter are also described in Note 2. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

/s/MaloneBailey, LLP

www.malone-bailey.com

Houston, Texas

April 24, 2014

ESP Resources, Inc.

Consolidated Balance Sheets

	December 31, 2014			December 31, 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	121,880		$	5,757
Restricted cash		283,392			113,589
Accounts receivable, net		2,110,534			1,747,712
Inventories		987,734			1,170,900
Prepaid expenses		358,856			360,378
Total current assets		3,862,396			3,398,336
Assets held for sale		160,378			216,092
Property and equipment, net of accumulated depreciation of $2,253,686 and $1,836,493, December 31, 2014 and 2013		1,709,845			2,330,638
Other assets		49,877			65,872
Total assets	$	5,782,496		$	6,010,938
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	2,785,041		$	2,662,087
Net liabilities from discontinued operations		78,095			90,792
Factoring payable		1,339,653			1,093,593
Accrued expenses		1,540,409			1,153,455
Due to related parties		412,373			475,172
Contingent consideration payable		38,937			181,437
Guarantee liability		120,000			120,000
Short-term debt		361,477			376,265
Current maturities of convertible debentures, net of debt discount		1,142,000			875,760
Current maturities of debt - vendor deferred payment		1,285,528			348,466
Current maturities of long-term debt		669,005			858,002
Current portion of capital lease obligation		99,240			230,462
Derivative liability		255,168			263,875
Total current liabilities		10,126,926			8,729,366
Long-term debt (less current maturities)		111,038			463,168
Long-term debt - vendor deferred payment (less current maturities		-			1,064,954
Capital lease obligations (less current maturities)		84,319			50,060
Deferred lease cost		-			17,000
Total liabilities		10,322,283			10,324,548
Commitments and Contingencies (Note 15)
STOCKHOLDERS' DEFICIT
Preferred stock - $0.001 par value, 10,000,000 shares authorized, none outstanding		-			-
Common stock - $0.001 par value, 350,000,000 shares authorized, 237,830,249 and 156,230,249 shares issued and outstanding as of December 31, 2014 and 2013, respectively		237,831			156,231
Additional paid-in capital		22,081,766			20,328,102
Subscription receivable		(1,000	)		(1,000	)
Accumulated deficit		(26,858,384	)		(24,796,943	)
Total stockholders' deficit		(4,539,787	)		(4,313,610	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	5,782,496		$	6,010,938

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

ESP Resources, Inc.

Consolidated Statements of Operations

For the Years Ended December 31, 2014 and 2013

	Years ended December 31,
	2014			2013
CONTINUING OPERATIONS
SALES, NET	$	11,912,045		$	10,591,111
COST OF GOODS SOLD		4,096,444			5,186,517
GROSS PROFIT		7,815,601			5,404,594
General and administrative:		8,039,514			8,016,259
Depreciation and amortization		787,632			831,642
Loss (gain) on disposal of assets		(2,953	)		327,174
Impairment on assets held for sale		2,049			133,556
LOSS FROM OPERATIONS		(1,010,641	)		(3,904,037	)
OTHER INCOME (EXPENSE):
Interest expense		(538,502	)		(1,030,718	)
Factoring fees		(281,289	)		(257,260	)
Amortization of debt discount		(266,241	)		-
Other income, net		26,525			13,489
Interest income		-			14
Change in derivative liability		8,707			766,923
Contingent cost of Turf settlement		-			(150,000	)
Loss on extinguishment of debt		-			(310,767	)
Total other expense		(1,050,800	)		(968,319	)
Income tax provision		-			-
LOSS FROM CONTINUING OPERATIONS		(2,061,441	)		(4,872,356	)
LOSS FROM DISCONTINUED OPERATIONS		-			(365,421	)
NET LOSS	$	(2,061,441	)	$	(5,237,777	)
NET LOSS PER SHΑRE (basic and dilutеd) for discontinuеd opеrations	$	-		$	(0.00	)
NET LOSS PER SHΑRE (basic and dilutеd) for continuеd opеrations	$	(0.01	)	$	(0.03	)
NET LOSS PER SHARE (basic and diluted)	$	(0.01	)	$	(0.03	)
WEIGHTED AVERAGE SHARES OUTSTANDING		186,210,523			153,105,728

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

ESP Resources, Inc.

Consolidated Statement of Stockholders’ Deficit

	Common stock
	Number		Par Value		APIC		Subscription Receivable			Accumulated Deficit			Total
Balance, December 31, 2012		150,830,249		150,831		19,142,847		(1,000	)		(19,559,166	)		(266,488	)
Stock based compensation		5,250,000		5,250		1,172,447					-			1,177,697
Shares and warrants issued with notes payable		150,000		150		12,808		-			-			12,958
Net loss		-		-		-		-			(5,237,777	)		(5,237,777	)
Balance, December 31, 2013		156,230,249		156,231		20,328,102		(1,000	)		(24,796,943	)		(4,313,610	)
Stock based compensation		-		-		1,015,264		-			-			1,015,264
Shares issued for services		25,200,000		25,200		226,800		-			-			252,000
Shares issued to employees		56,000,000		56,000		504,000		-			-			560,000
Shares issued with settlement of lawsuit		400,000		400		7,600		-			-			8,000
Net loss		-		-		-		-			(2,061,441	)		(2,061,441	)
Balance December 31, 2014		237,830,249	$	237,831	$	22,081,766	$	(1,000	)	$	(26,858,384	)	$	(4,539,787	)

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

ESP Resources, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

For the Years ended December 31, 2014 and 2013

	December 31,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,061,441	)	$	(5,237,777	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of debt discount		266,241			585,142
Impairment of assets held for sale		2,049			133,556
(Gain) Loss on disposal of assets		(2,953	)		327,174
Depreciation and amortization, net disposals		787,632			831,642
Bad debt expense		60,000			60,000
Stock and warrant based compensation		1,827,264			1,177,697
Stock issued in settlement of lawsuit		8,000			-
Change in derivative liability		(8,707	)		(766,923	)
Loss on Extinguishment of debt		-			310,767
Changes in operating assets and liabilities:
Accounts receivable		(422,822	)		22,047
Inventory		183,166			753,233
Prepaid expenses		126,522			503,565
Other assets		(1,005	)		8,068
Accounts payable		122,954			1,430,933
Accrued expenses		386,954			681,177
Accrued expense to related parties		(62,799	)		337,881
Contingent consideration payable		-			150,000
Net liabilities from discontinued operations		(12,697	)
CASH PROVIDED BY OPERATING ACTIVITIES		1,198,358			1,308,182
CASH FLOWS FROM INVESTING ACTIVITIES
Restricted cash		(169,803	)		22,769
Proceeds from the sale of vehicles and equipment		21,477			131,533
Purchase of fixed assets		(201,683	)		(201,774	)
CASH USED IN INVESTING ACTIVITIES		(350,009	)		(47,472	)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing on Long-term debt		-			50,150
Borrowing on short-term debt		265,486			150,000
Repayment of long term debt		(557,264	)		(569,934	)
Repayment of capital leases		(263,735	)		(263,209	)
Repayment of short-term debt		(280,273	)		(469,836	)
Net factoring advances		246,060			(222,338	)
Payment of settlement on contingent liabilities		(142,500	)
CASH USED IN FINANCING ACTIVITIES		(732,226	)		(1,325,167	)
NET CHANGE IN CASH		116,123			(64,457	)
CASH AT BEGINNING OF YEAR		5,757			70,214
CASH AT END OF YEAR	$	121,880		$	5,757
Supplemental Disclosures of Cash Flow Information
Cash paid for interest and factoring cost	$	614,721		$	663,833
Non-cash investing and financing transactions:
Notes issued for purchase of property and equipment	$	-		$	268,805
Debt issued for insurance financing		-			292,227
debt issued for settlement of accounts payable		-			1,104,293
Capital lease obligations		166,772			105,021
Assets returned to service		143,042			-
Capital lease expired		116,139			-
Shares issued on settlement of lawsuit		8,000			-
Deferred leasing cost		17,000			-
Debt discount due to shares and warrants issued with debt		-			12,958
Derivative liability on warrants related to notes payable at issuance		-			172,007
debt discount from derivative liabilities		-			12,000
Accrued interest capitalized as debt		-			90,792
Net liabilities from discountinued operations		-			426,919

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

ESP Resources, Inc.

Notes to Consolidated Financial Statements

December 31, 2014 and 2013

Note 1 – Basis of Presentation, Nature of Operations and Significant Accounting Policies

Basis of Presentation

ESP Resources, Inc. (“ESP Resources”, and collectively with its subsidiaries, “we”, “our” or the “Company”) was incorporated in the State of Nevada on October 27, 2004. The accompanying consolidated financial statements include the accounts of ESP Resources, Inc. and its wholly owned subsidiaries, ESP Petrochemicals, Inc. of Louisiana (“ESP Petrochemicals”), ESP Ventures, Inc. of Delaware (“ESP Ventures”), ESP Corporation, S.A., a Panamanian corporation (“ESP Corporation”) and ESP Payroll Services, Inc. of Nevada (“ESP Payroll”). On July 11, 2012 the Company formed two partially owned subsidiaries in Delaware, ESP Advanced Technologies, Inc., and ESP Facility & Pipeline Services, Inc. On December 19, 2012 the Company formed a partially owned subsidiary in Nevada, IEM, Inc.

On June 11, 2013, the board of directors resolved to discontinue operations of various subsidiaries, including ESP Facility and Pipeline Services, Inc., ESP Advanced Technologies, Inc., ESP KUJV Limited Joint Venture and ESP Marketing Group LLC (collectively, the “Discontinued Subsidiaries”). The Discontinued Subsidiaries were not wholly-owned by the Company and, in accordance with the decision to discontinue operations, no longer receive financial or management support. The Company reflected 100% of the losses related to the subsidiaries in its results from discontinued operations.

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Any reference herein to “ESP Resources”, the “Company”, “we”, “our” or “us” is intended to mean ESP Resources, Inc. including the subsidiaries indicated above, unless otherwise indicated.

Nature of the Business

By and through its subsidiary ESP Petrochemicals Inc., the Company’s current business sells and blends chemicals for use in the oil and gas industry to customers primarily located in the Gulf of Mexico and Gulf States region. ESP Resources previously was in the business of acquisition and exploration of oil and gas properties in North and South America. ESP Delaware, which was incorporated in Delaware in November, 2006, was formed as a holding company for ESP Petrochemicals, Inc. On June 15, 2007, ESP Delaware acquired all of the stock of ESP Petrochemicals Inc.

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed

The Company reviews its long-lived assets and identifiable finite-lived intangibles for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The first step of the impairment test, used to identify potential impairment, compares undiscounted future cash flows of the asset or asset group with the related carrying amount. If the undiscounted future cash flows of the asset or asset group exceed its carrying amount, the asset or asset group is not considered to be impaired and the second step is unnecessary. If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying amount of the assets exceeds the fair market value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the year ended December 31, 2013, the Company recognized an impairment loss of $133,556 on assets held for sale.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Principles of consolidation

The consolidated financial statements include the accounts of ESP Resources and its wholly owned and partially owned subsidiaries for the years ended December 31, 2014 and 2013. All significant inter-company transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. The Company had $121,880 and $5,757 cash and cash equivalents at December 31, 2014 and 2013, respectively.

Restricted Cash

Under the terms of the Factoring payable, the Company may obtain advances up to 100% of eligible accounts receivable, subject to a 0.75% per 15 days factoring fee, with 10% held in a restricted cash reserve account, which is released to the Company upon payment of the receivable. As of December 31, 2014 and 2013, restricted cash totaled $283,392 and $113,589, respectively.

Accounts Receivable and Allowance for Doubtful Accounts

The Company generally does not require collateral, and the majority of its trade receivables are unsecured. The carrying amount for accounts receivable approximates fair value.

Accounts receivable consisted of the following as of December 31, 2014 and 2013:

	2014			2013
Trade receivables	$	2,265,534		$	1,842,712
Less: Allowance for doubtful accounts		(155,000	)		(95,000	)
Net accounts receivable	$	2,110,534		$	1,747,712

Accounts receivable are periodically evaluated for collectability based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance and current economic conditions.

Inventories

Inventory represents raw and blended chemicals and other items valued at the lower of cost or market with cost determined using the first-in first-out method, and with market defined as the lower of replacement cost or realizable value.

As of December 31, 2014 and 2013, inventory consisted of the following:

		2014		2013
Raw materials	$	412,978	$	500,824
Finished goods		574,756		670,076
Total inventory	$	987,734	$	1,170,900

Property and equipment

Property and equipment of the Company is stated at cost. Expenditures for property and equipment which substantially increase the useful lives of existing assets are capitalized at cost and depreciated. Routine expenditures for repairs and maintenance are expensed as incurred.

Depreciation is provided principally on the straight-line method over the estimated useful lives ranging from five to ten years for financial reporting purposes.

Derivatives

The valuation of our embedded derivatives and warrant derivatives are determined primarily by the multinomial distribution (Lattice) model. An embedded derivative is a derivative instrument that is embedded within another contract, which under the convertible note (the host contract) includes the right to convert the note by the holder, certain default redemption right premiums and a change of control premium (payable in cash if a fundamental change occurs). In accordance with Accounting Standards Codification (“ASC”) 815 “Accounting for Derivative Instruments and Hedging Activities’, as amended, these embedded derivatives are marked-to-market each reporting period, with a corresponding non-cash gain or loss charged to the current period. A warrant derivative liability is also determined in accordance with ASC 815. Based on ASC 815, warrants which are determined to be classified as derivative liabilities are marked-to-market each reporting period, with a corresponding non-cash gain or loss charged to the current period. The practical effect of this has been that when our stock price increases so does our derivative liability and resulting in a non-cash loss charge that reduces our earnings and earnings per share. When our stock price declines, we record a non-cash gain, increasing our earnings and earnings per share. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

● Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.

● Level 2 - inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.

● Level 3 - unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded.

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014.

	Carrying Value at		Fair Value Measurement at December 31, 2014
	December 31, 2014		Level 1		Level 2		Level 3
Liabilities
Derivative convertible debt liability	$	181,165	$	-	$	-	$	181,165
Derivative warrant liability	$	74,003	$	-	$	-	$	74,003
Total derivative liability	$	255,168	$	-	$	-	$	255,168

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013.

	Carrying Value at		Fair Value Measurement at December 31, 2013
	December 31, 2013		Level 1		Level 2		Level 3
Liabilities
Derivative convertible debt liability	$	188,827	$	-	$	-	$	188,827
Derivative warrant liability	$	75,048	$	-	$	-	$	75,048
Total derivative liability	$	263,875	$	-	$	-	$	263,875

Income Taxes

In accordance with ASC 740 “Accounting for Income Taxes”, the provision for income taxes is computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

Concentration

The Company has four major customers that together account for 68% of accounts receivable at December 31, 2014 and 59% of the total revenues earned for the year ended December 31, 2014.

	Accounts receivable			Revenue
Customer A		25	%		13	%
Customer B		16	%		11	%
Customer C		16	%		6	%
Customer D		11	%		29	%
		68	%		59	%

The Company has four vendors that accounted for 37%, 16%, 16% and 11% of purchases during 2014.

The Company has three major customers that together account for 50% of accounts receivable at December 31, 2013 and 47% of the total revenues earned for the year ended December 31, 2013.

	Accounts receivable			Revenue
Customer A		21	%		11	%
Customer B		16	%		26	%
Customer C		13	%		10	%
		50	%		47	%

The Company has four vendors that accounted for 40%, 24%, 13% and 13% of purchases during 2013.

The Company places its cash and cash equivalents with financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per depositor per bank. From time to time, the Company’s cash balances exceeded FDIC insured limits. At December 31, 2014, the Company’s uninsured cash balance was $0.

Revenue and Cost Recognition

The Company through its wholly owned subsidiary, ESP Petrochemicals, Inc., is a custom formulator of petrochemicals for the oil and gas industry. Since the products are specific to each location, the receipt of an order or purchase order starts the production process. Once the blending takes place, the order is delivered to the land site or dock. When the containers of blended petrochemicals are off-loaded at the dock, or they are stored on the land site, a delivery ticket is obtained, an invoice is generated and Company recognizes revenue. The invoice is generated based on the credit agreement with the customer at the agreed-upon price. ESP Facilities and Pipeline Services, Inc. is a pressure test service provider for the oil and gas industry. The Company provides labor and equipment to pressure test and service pipes and values. The Company invoices the Customer based on the hours provided and invoices the customer for those hours during the service period and recognizes the revenue at the time of service.

Revenue is recognized when title and risk of loss have transferred to the customer and when contractual terms have been fulfilled. Transfer of title and risk of loss occurs when the product is delivered in accordance with the contractual shipping terms, generally to a land site or dock. Revenue is recognized based on the credit agreement with the customer at the agreed upon price.

Stock-based Compensation

The Company accounts for stock-based compensation to employees in accordance with FASB ASC 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black-Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances.

Advertising

Advertising costs are charged to operations when incurred. Advertising expense for the years ended December 31, 2014 and 2013 were $2,062and $1,021, respectively.

Basic and Diluted Loss Per Share

Basic and diluted earnings or loss per share (“EPS”) amounts in the consolidated financial statements are computed in accordance Accounting Standard Codification (ASC) 260 – 10 “Earnings per Share”, which establishes the requirements for presenting EPS. Basic EPS is based on the weighted average number of common shares outstanding. Diluted EPS is based on the weighted average number of common shares outstanding and dilutive common stock equivalents. Basic EPS is computed by dividing net income or loss available to common stockholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Potentially dilutive securities were excluded from the calculation of diluted loss per share, because their effect would be anti-dilutive.

Business Segments

The Company operates in one segment in one geographic location the United States of America and, therefore, segment information is not presented.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments including accounts payable, accrued expenses, and notes payable approximate fair value due to the relative short period for maturity these instruments.

Environmental Costs

Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company’s commitments to a plan of action based on the then known facts.

The Company incurred no environmental expenses during the years ended December 31, 2014 and 2013, respectively.

Reclassification

Certain accounts in the prior period were reclassified to conform to the current period financial statements presentation.

Recently Issued Accounting Pronouncements

During the year ended December 31, 2014 and through April 15, 2015, there were several new accounting pronouncements issued by the Financial Accounting Standards Board. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. Previously, there was no guidance under US GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this Update provide that guidance. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). For the year ended December 31, 2014, management evaluated the Company’s ability to continue as a going concern and concluded that substantial doubt has not been alleviated about the Company’s ability to continue as a going concern. While the Company continues to explore further significant sources of financing, management’s assessment was based on the uncertainty related to the amount and nature of such financing over the next twelve months.

Note 2 – Going Concern

At December 31, 2014, the Company had cash and cash equivalents of $121,880 and a working capital deficit of $6,264,530. The Company believes that its existing capital resources may not be adequate to enable it to execute its business plan. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. The Company estimates that it will require additional cash resources during 2015 based on its current operating plan and condition.

The Company’s ability to continue as a going concern is dependent on its ability to raise the required additional capital or debt financing to meet short and long-term operating requirements. The Company believes that future private placements of equity capital and debt financing are needed to fund our long-term operating requirements. The Company may also encounter business endeavors that require significant cash commitments or unanticipated problems or expenses that could result in a requirement for additional cash. If the Company raises additional funds through the issuance of equity or convertible debt securities, the percentage ownership of current shareholders could be reduced, and such securities might have rights, preferences or privileges senior to the Company’s common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, the Company may not be able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict our operations. The Company is continuing to pursue external financing alternatives to improve our working capital position. If the Company is unable to obtain the necessary capital, the Company may have to cease operations.

Note 3 – Factoring Payable

On May 24, 2011, ESP Petrochemical Inc. entered into an Account Receivable Financing agreement with Crestmark Commercial Capital Leading LLC (“Crestmark”), with an initial term of six months and renewing semi-annually thereafter. The agreement is in the subsequent renewal period. The Company may obtain advances up to 100% of eligible accounts receivable, subject to a 0.75 percent per 15 days factoring fee, with ten percent held in a reserve account, which is released to the Company upon payment of the receivable. The agreement is subject to a master note, which limits borrowing to $2,000,000. The master note is payable upon demand, or if no demand is paid, with monthly payments of interest at 1.5%. All outstanding principal plus accrued unpaid interest is due on maturity of the note or when the related invoice is collected. The master note is secured by all inventory, accounts, general intangibles, and equipment of the ESPI. On March 2, 2012 Crestmark increased the borrowing limit to $3,000,000. On August 1, 2012 Crestmark increased the borrowing limit to $4,000,000.The total borrowing under the agreement at December 31, 2013 was $1,093,593 with $113,589 held in restricted cash in the consolidated balance sheets.

On August 15, 2014 ESP Petrochemicals, Inc., (the “Company”) a subsidiary of ESP Resources, Inc. entered into a Purchase and Sale Agreement (the “Factoring Agreement”) with Transfac Capital, Inc., which served to replace the agreement with Crestmark. On October 1, 2014 the Factoring agreement was amended. The Factoring Agreement has an initial term of two years (“Contract Term”) with automatically renewing successive Contract Terms. The Factoring Agreement may be terminated by the Company at the end of a Contract Term by providing notice to Transfac no more than ninety and no less than sixty days before the end of the current Contract Term. Transfac may terminate the Factoring Agreement at any time upon thirty days’ notice of an event of default. Under the terms of the Factoring Agreement, Transfac may purchase any accounts submitted by the Company. The Company shall pay a servicing fee equal to the greater of 0.75% or $10 and will be subject to others fees and charges and may be required to establish a reserve account as set forth in greater detail in the Factoring Agreement set forth as an exhibit to this current report and incorporated herein by reference. The Factoring Agreement is secured by substantially all of the Company’s assets and personally guaranteed by David Dugas and Tony Primeaux and guaranteed by ESP Resources, Inc. and ESP Ventures, Inc. The total borrowing under this agreement at December 31, 2014 was $1,339,653 with $283,392 held in restricted cash in the consolidated balance sheets.

Note 4 – Property and equipment

Property and equipment includes the following at December 31, 2014 and 2013:

	2014			2013
Plant, property and equipment	$	1,597,011		$	1,406,517
Vehicles		1,679,220			1,745,704
Equipment under capital lease		596,888			955,779
Equipment under capital lease – related party		31,281			-
Office furniture and equipment		59,131			59,131
		3,963,531			4,167,131
Less: accumulated depreciation		(2,253,686	)		(1,836,493	)
Net property and equipment	$	1,709,845		$	2,330,638

Depreciation expense was $787,632 and $831,642 for the years ended December 31, 2014 and 2013, respectively.

On March 19, 2014 the Company exchanged three vehicles with a net carrying value of $79,957, two of which were classified as assets held for sale with a combined net carrying value of $46,551, and a vehicle with a net carrying value of $33,406 in exchange for reduction of $63,787 in related long-term debt including $7,916 of accrued interest, for a capitalized lease on a vehicle in which a related party purchased, then leased the vehicle to the Company. The Company valued the leased vehicle as equipment under capital lease of $31,281, which resulted in a gain from disposal of assets of $2,953.

On December 31, 2014 the Company agreed to extend the leases of certain specialized equipment with a fair value of $113,595 for an additional 2 years and a purchase option of $1. The Company evaluated the application of ASC 440-30, “Leases - Capital lease” and concluded that the lease constituted capital leases.

In the year ended December 31, 2014 The Company determine that certain specialized equipment was to be sold and as such classified the $160,378 its fair value and net book value.

In the year ended December 31, 2014 the Company recognized an additional $2,049 loss disposed of equipment on assets held for sale.

In the year ended December 31, 2013 the Company recognized a loss on the impairment of assets held for sale of $133,556 and disposed of equipment and assets held for sale, receiving proceeds of $131,533 resulting in a loss of $327,174 of the disposal of assets.

Note 5- Short-Term Debt

On April 8, 2013, the Company executed a demand note for $150,000 with an annual interest rate of 8%. As part of the agreement the Company granted the holder 150,000 shares of Common Stock and warrants to purchase 150,000 shares of common stock at an exercise price of $0.15 per share through April 8, 2014. The Company determined the fair value of the common stock and warrants to be $10,500 and $2,458, respectively. The aggregate fair value of $12,958 was recognized as a debt discount which is being amortized to interest expense over the life of the debt. During the year ended December 31, 2013, the entire discount of $12,958 was amortized to interest expense.

During the years ended December 31, 2014 and 2013 the Company issued notes payable to finance its insurance with an aggregate principal amounts of $265,486 and $292,227, respectively. The notes mature in 1 year, bear interest between 5.7% and 5.7% per annum and require equal monthly payments.

The Company made aggregate repayments on its short-term debt of $280,273 and $469,836 during the years ended December 31, 2014 and 2013, respectively.

Note 6- Long-term-debt Vendor Deferred Payment

Long-term debt on vendor deferred payments consisted of the following at December 31, 2014 and 2013:

	December 31, 2014			December 31, 2013
The Company reached an agreement with certain Vendors to exchange payables for term debentures with a annual interest rates of 5% or prime plus 1.5% payable monthly between $22,551 and $10,000 and maturing between October 2014 and September 2018	$	1,285,528		$	1,413,420
Less current maturities		(1,285,528	)		(348,466	)
Total long-term debt	$	-		$	1,064,954

During 2013 the Company and certain of its trade vendors agreed to convert existing accounts payable balances totaling $1,104,407 to 5% notes in the aggregate principal amount of $1,104,407 with monthly payments ranging from $1,409 to $22,551 continuing to between October 15, 2014 and September 21, 2018. The trade vendors agreed to subordinate its position to any provider of new debt, excluding a trade vendor.

On May 25, 2012, the Company reached an agreement with a Vendor to exchange accounts payable for a term debenture of $450,000 with an annual interest rate of prime plus 1.5% payable monthly of $10,000 plus interest.

The Company evaluated the application of ASC 470-50, “Modifications and Extinguishments” and ASC 470-60, “Trouble Debt Restructurings by Debtors” and concluded that the revised terms constituted a troubled debt restructuring, rather than a debt extinguishment or debt modification.

As of December 31, 2014, the Company was unable to make the required payments under the long-term debt – vendor deferred payments, so the debt is in default and is classified as current maturities.

Note 7- Long Term-Debt

Long term debt consisted of the following at December 31, 2014 and 2013:

	December 31, 2014			December 31, 2013
Equipment secured note payable - the note bear interest at rates between 7.5% per annum, is payable in monthly installments of $2,522 and mature January 2015.	$	3,016		$	73,733
Vehicle secured notes payable - the notes bear interest at rates between 9.49% and 0.0% per annum, are payable in monthly installments between $698 and $1,832 and mature between January 2015 and August 2016.		385,328			843,910
On April 13, 2013, the Company borrowed $50,150 from a bank with an annual interest rate of 5.80% and a term of 36 months with payments of $1,170		31,731			43,559
Unsecured notes payable. The notes bear interest at 5 percent per annum and are due between April 2009 and July 2013		359,968			359,968
Total		780,043			1,321,170
Less current maturities		(669,005	)		(858,002	)
Total long-term debt	$	111,038		$	463,168

Minimum principal payments due under long-term debt for the 5 years following December 31, 2014 are as follows:

2015	$	669,005
2016		105,120
2017		5,918

During the year ended December 31, 2013, the Company purchased property and equipment through the issuance of debt with an aggregate principal amount of $268,805. The notes bear interest ranging from 4.24% to 4.69% per annum, are secured by the underlying property and equipment, mature between February 2016 and June 2016 and require monthly payments ranging from $934 to $1,673.

On April 13, 2013, the Company borrowed $50,150 from a bank with an annual interest rate of 5.80% and a term of 36 months with monthly payments of $1,170.

Note 8 – Capital Lease Obligations

ESP Petrochemicals leases certain office equipment, warehouse equipment special purpose equipment and vehicles under capital leases. Long term capitalize lease consisted of the following at December 31, 2014:

	Year			Borrowing		Term in months			Monthly payment			December 31, 2014			December 31, 2013
												$	-		$	-
Warehouse equipment		2013		$	26,313		36			$731			10,127			21,097
Vehicles	2010	-	2014	$	368,766	21	-	72	$887	-	1,905		48,479			52,564
Office equipment		2014		$	10,140		24			$260			9,953			3,380
Special purpose equipment	2011	-	2012	$	125,000		24			$6,065			115,000			203,481
Total capital lease													183,559			280,522
less current portion													(99,240	)		(230,462	)
Total long-term capital lease												$	84,319		$	50,060

On June 1, 2012 the Company completed a sale leaseback transaction of certain equipment for $304,879 in accordance Accounting Standard Codification (ASC) 840 – 40 “Sales-Leaseback Transactions”, the gain was deferred. The lease was accounted for as a capitalized lease, a financing method, with monthly payments of $22,200 through November, 2014. The proceeds from the sale where used to repay the debt on the equipment. The Company will continue to reflect the book value of the equipment and related accumulated depreciation remain on the balance sheet and no sale was recognized. The sales price of the equipment is recorded as a capitalized lease obligation with a portion of each lease payment includes interest expense.

On March 19, 2014 the Company acquired a vehicle using under a lease with a related party with a 3 year term and a monthly payment of $869. The Company evaluated the application of ASC 440-30, “Leases - Capital lease” and concluded that the lease constituted capital leases.

On December 31, 2014 the Company extended the lease on specialized equipment for 2 years with a monthly lease payment of $6,065, bargain purchase and the Company granted to the leaseholder 200,000 shares with a fair value of $2,000 which was accounted for as stock compensation. The Company evaluated the application of ASC 440-30, “Leases - Capital lease” and concluded that the lease constituted capital leases.

The future payments under the capital lease are as follows:

2015	$	99,240
2016	$	78,215
2017	$	5,835
2018	$	269

Note 9 – Convertible debentures

The following reflect the Convertible debentures for the year ended December 31.

	2014			2013
On January 27, 2012, the Company received proceeds of $130,000 from the sale of 16% Convertible Subordinated Debentures. The Company is in default and interest is past due and continues to accrue at 16%.		130,000			130,000
On December 20, 2013, the Company amended the debenture initially issued November 14, 2012 in which received proceeds of $750,000 from the sale of 16% Convertible Subordinated Debentures. The Company is in default and interest is past due and accrues at 18%.		762,000			762,000
On November 14, 2012, the Company received proceeds of $250,000 from the sale of 16% Convertible Subordinated Debentures. Interest was due March 1, 2013, June 1, 2013 and September 1, 2013. The Company is in default and interest is past due and accrues at 18%.		250,000			250,000
Total		1,142,000			1,142,000
Less unamortized debt discounts					(266,240	)
Less current maturities		(1,142,000	)		(875,760	)
Total Long-term convertible debentures	$	-		$	-

On January 27, 2012, the Company received proceeds of $130,000 from the sale of 16% Convertible Subordinated Debentures (the “January 2012 Debentures”). The January 2012 Debentures are subordinate to all other secured debt of the Company, pay 16% interest per annum in cash quarterly and are convertible into the Company’s common stock by the investors at any time at a minimum conversion price per share of $0.15. On March 1, 2013, June 1, 2013 and September 1, 2013, the Company was required to redeem one quarter, one quarter and one half, respectively, of the face value of the balance of the January 2012 Debentures in cash. In addition, the investors received 100% of the number of shares of common stock that the purchase amount would buy in warrants at the conversion price of $0.15, or a total of 866,667 warrants, with a 3-year term. The Company does not have any registration obligation in regard to the common stock. The Company analyzed the conversion option under ASC 815 and determined equity classification was appropriate. The Company then analyzed the conversion option under ASC 470-20 for consideration of a beneficial conversion feature and determined the option had intrinsic value on the date of issuance. The Company recorded a discount from the relative fair value of the warrants and the intrinsic value of the conversion option of $71,291. The Company valued the warrants using the Black-Scholes option pricing model with the following assumptions: stock price on the measurement date of $0.114; warrant term of 3 years; expected volatility of 156%; and discount rate of 0.32% and accounted for them as debt discount, which will be amortized over the term of the loan which expires September 1, 2013.

On November 14, 2012, the Company received proceeds of $1,000,000 from the sale of 16% Convertible Subordinated Debentures (the “November 2012 Debentures”). The November 2012 Debentures were due on March 1, 2014. The aggregate principal amount of the combined November 2012 Debentures is $1,000,000 with an interest rate of 16% per annum. The interest is payable quarterly on March 1st, June 1st, September 1st, and December 1st, beginning on March 1, 2013. The November 2012 Debentures are convertible at any time after the original issue date at a conversion price of $0.085 per share, subject to adjustments. The Company recorded a discount from the relative fair value of the conversion feature and the intrinsic value of the conversion option of $421,715. The Company estimated the fair value of these derivatives using a multinomial Distribution (Lattice) valuation model with the following assumptions: stock price on the measurement date of $0.07; term of 1.5 years; expected volatility between 112% 159%; and discount rate of 0.22% and accounted for them as debt discount, which will be amortized over the term of the loan which expired March 1, 2014. The Company analyzed the conversion option under ASC 815 and determined and recorded $449,840 derivative liability. The Company, in its sole discretion, may choose to pay interest in cash, shares of Common Stock, or in combination thereof. At the Company’s election, it may, at any time after the six-month anniversary of the transaction’s closing date, deliver a notice to the holders to redeem the then-outstanding principal amount of the November 2012 Debentures for cash. In the event the Company defaults, the outstanding principal amount of the November 2012 Debentures, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the holders’ election, immediately due and payable in cash. In addition, the investors received 100% of the number of shares of common stock that the purchase amount would buy in warrants at the conversion price of $0.09, or a total of 11,764,706 warrants with a 5-year term. The Company recorded a discount from the relative fair value of the warrants and the intrinsic value of the conversion option of $208,685. The Company estimated the fair value of these derivatives using a multinomial Distribution (Lattice) valuation model with the following assumptions: stock price on the measurement date of $0.07; warrant term of 5 years; expected volatility between 112%-593%; and discount rate of 0.63% and accounted for them as debt discount, which will be amortized over the term of the loan which expires March 1, 2014. The Company analyzed the warrants under ASC 815 and determined and recorded a $222,603 derivative liability. The November 2012 Debentures are secured by the remaining unencumbered assets of the Company. The Company’s subsidiary companies guaranteed the security agreement by agreeing to act as surety for the payment of the November 2012 Debentures. As further consideration, the Company issued a combined total of 4,000,000 shares of common stock to the investors, which the Company recorded as a debt discount $299,600 at issuance and will amortize the debt discount over the term of the debt. For the year ended December 31, 2013, the Company amortized $5,912. The Company shall take all actions necessary to nominate and recommend shareholder approval for the appointment of one director selected by Hillair Capital Management LLC to ESP’s Board of Directors. In conjunction with this debenture, the Company paid $70,000 of professional fees and record these fees as debt discount to be amortized over the term of the debenture. The Company determined that the Debenture and warrant had derivative features and derivative liabilities were established for each.

On September 30, 2013 the Company agreed with its convertible debenture holders to amend and restate the November 2012 Debenture. The September 1, 2013 payment obligation was extended and deferred to $375,000 on December 1, 2013 and $625,000 on March 1, 2014 plus accrued interest; the conversion price was amended and restated to $0.05 from $0.085; the related warrants exercise price per share of the common stock was amended and restated to $0.075 from $0.09. The Company evaluated the application of ASC 470-50, Modifications and Extinguishments and ASC 470-60, Trouble Debt Restructurings by Debtors and concluded that the revised terms did not constitute a substantial modification or a troubled debt restructuring. The amended and restated exercise price of the warrant and conversion price were valued as derivative instruments and were revalued at the fair market value of the derivative instruments at September 30, 2013.

On December 20, 2013 the Company agreed with one of its convertible debenture holders to amend and restate the November 2012 Debenture amended previously on September 30, 2013. The December 1, 2013 payment obligation was extended and deferred to $281,250 on June 1, 2014 and $468,750 on September 1, 2014 plus accrued interest. The Company issued 5,000,000 Warrants with an exercise price per share of the Common Stock $0.075 and a term of 5 years. The amended and restated exercise price of the Warrant and Conversion price were valued as derivative instruments and were revalued at the fair market value of the derivative instruments at December 20, 2013 as debt discount. The Company estimated the fair value of these derivatives using a multinomial Distribution (Lattice) valuation model with the following assumptions: stock price on the measurement date of $0.07; term of 1.5 years; expected volatility between 123% 143% and accounted for them as debt discount, which will be amortized over the term of the loan which expires September 1, 2014. The Company analyzed the conversion option under ASC 815 and determined and recorded derivative liability of these warrants at $13,365 and included in Debt discount. The Company estimated the conversion option of this debt conversion feature at $158,612 and included in debt discount. The Company evaluated the application of ASC 470-50, Modifications and Extinguishments and ASC 470-60, Trouble Debt Restructurings by Debtors and concluded that the revised terms constituted a substantial modification which resulted in a debt extinguishment. The Company recognized a loss on the extinguishment of $310,767 during 2013. Accrued interest of $12,000 was incorporated into the reissued convertible debenture principal amount.

On December 1, 2013 the Company failed to make the amended principal payment on one if its convertible debentures dated November 14, 2012 amended on September 30, 2013. This convertible debenture is now in default. Under the terms of the convertible debenture all principal payments are now due and reflected as current and the interest rate increases to 18%.

As of December 31, 2014 these convertible debentures are in default and have been classified as current maturities.

Note 10 – Derivative liability

The Company evaluated whether its warrants and convertible debt instruments contain provisions that protect holders from declines in its stock price or otherwise could result in modification of either the exercise price or the shares to be issued under the respective warrant agreements. The November 14, 2012 16% convertible debenture and associated warrants included down-round provisions which reduce the exercise price of the warrants and the conversion price of the convertible instrument if the company either issues equity shares for a price that is lower than the exercise price of those instruments or issues new warrants or convertible instruments that have a lower exercise price. The Company determined that a portion of its outstanding warrants and conversion instrument contained such provisions thereby concluding they were not indexed to the Company’s own stock and therefore a derivative instrument in accordance with ASC 815 “Derivatives and Hedging”.

The range of significant assumptions which the Company used to measure the fair value of the derivative liabilities (a level 3 input) at November 14, 2012 is as follows:

	Warrant			Debenture
Stock price		$0.07			$0.07
Term (years)		5			1.5
Volatility	112%	-	593%	112%	-	159%
Risk-free interest rate		0.22%			0.63%
Exercise prices	$0.09	to	0.00255	$0.085	to	0.055
Dividend yield		0.00%			0.00%

The Company estimated the fair value of these derivatives using a multinomial Distribution (Lattice) valuation model. The fair value of these warrant and debenture liabilities at November 14, 2012 was $693,043 the Company recorded them as derivative liabilities.

On December 20, 2013 the Company agreed with one of its convertible debenture holders to issued 5,000,000 Warrants with an exercise price per share of the Common Stock $0.075 and a term of 5 years. The Company estimated the fair value of derivative value of these warrants at $13,395. The Company estimated fair value of derivative of the conversion option of this debt at $158,612.

The range of significant assumptions which the Company used to measure the fair value of the derivative liabilities (a level 3 input) at December 20, 2013 is as follows:

	Warrants			Debentures
Stock price		$0.02			$0.02
Term (years)		5			.75
Volatility	123%	-	143%	123%	-	143%
Risk-free interest rate		1.75%			0.13%
Exercise prices	$0.075	to	0.002	$0.05	to	0.02
Dividend yield		0.00%			0.00%

The Company estimated the fair value of these derivatives using a multinomial Distribution (Lattice) valuation model. The fair value of these warrant and debenture liabilities at December 20, 2013 was $172,007 the Company recorded as derivative liability.

The range of significant assumptions which the Company used to measure the fair value of the derivative liabilities (a level 3 input) at December 31, 2014 is as follows:

	Warrants			Debentures
Stock price		$0.01			$0.01
Term (years)	3.6	to	4.7		.5
Volatility	143%	-	202%	143%	-	202%
Risk-free interest rate		1.65%			0.04%
Exercise prices	$0.075	to	0.002	$0.05	to	0.02
Dividend yield		0.00%			0.00%

The Company analyzed the warrants and conversion feature under ASC 815 “Derivatives and Hedging” to determine the derivative liability. The Company estimated the fair value of these derivatives using a multinomial Distribution (Lattice) valuation model. The fair value of these derivative liabilities at December 31, 2013 was $263,875, and at December 31, 2014 was $255,168. As part of the modification of the Hillair Capital Management note in the year ended December 31, 2013, the company recognized an extinguishment of derivative liability in the amount of $65,452. The change in the fair value of derivative liabilities resulted in a mark to market change of $8,707 and $766,923 for the years ended December 31, 2014 and December 31, 2013, respectively.

Changes in the derivative liability for the years ended December 31, 2014 and 2013 consist of:

	Year Ended December 31, 2014			Year Ended December 31, 2013
Beginning of year derivative liability	$	263,875		$	924,243
Conversion option of issuance of warrants December 20, 2013		-			158,612
Warrants issued December 20, 2013		-			13,395
Exercise of Warrants December 20, 2013		-			(65,452	)
Change in derivative liability – mark to market		(8,707	)		(766,923	)
Derivative liability at end of year	$	255,168		$	263,875

As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

● Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.

● Level 3 - unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

Note 11 – Income taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company recorded the valuation allowance due to the uncertainty of future realization of federal and state net operating loss carryforwards. The deferred income tax assets are comprised of the following at December 31:

		2014			2013
Deferred income tax assets:	$	6,030,000		$	5,815,000
Valuation allowance		(6,030,000	)		(5,815,000	)
Net total	$	-		$	-

Reconciliations between the statutory rate and the effective tax rate for the years ended December 31, 2014 and 2013 consist as follows:

	2014			2013
Federal statutory tax rate		(35.0	)%		(35.0	)%
State taxes, net of federal benefit		(6.0	)%		(6.0	)%
Valuation allowance		41	%		41	%
Effective tax rate		-			-

At December 31, 2014, the Company had net operating loss carryforwards of approximately $14,703,000. The net operating loss carryforwards expire in 2019 through 2034.

The valuation allowance was increased by $215,000 during the year ended December 31, 2014. The current income tax benefit of $6,030,000 and $5,815,000 generated for the years ended December 31, 2014 and 2013, respectively, was offset by an equal increase in the valuation allowance. The valuation allowance was increased due to uncertainties as to the Company’s ability to generate sufficient taxable income to utilize the net operating loss carryforwards and other deferred income tax items.

The Company’s ability to utilize the net operating loss carryforwards in future years will be significantly limited in accordance with the provisions of Section 382 of the Internal Revenue Code, because of the changes in ownership that have occurred in the prior years. The Company’s Net Operating Loss (“NOL”) may be further limited should there be any further changes in ownership. As defined in Section 382 of the Internal Revenue Code, the Company who has undergone, or may undergo in the future, a greater than 50% ownership change as a result of financing initiatives. Consequently, there may be limitations on the amount of the Company’s NOLs which may be utilized to offset future taxable income in any one year.

The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expense. As of December 31, 2014, the Company has no unrecognized uncertain tax positions, including any related interest and penalties. The Company has yet to submit the Federal consolidated tax return for the year ended December 31, 2013 and certain state income and franchise tax returns for that period.

Note 12 – Stockholders’ Equity

Settlement of lawsuit

On April 25, 2014 the Company reached an agreement with the former owner of Turf Chemistry, Inc., Alfredo Ledesma. As part of the settlement agreement 400,000 shares of the Company’s restricted common stock were issued.

Shares issued to officers

On August 15, 2014 the Company granted 28,000,000 shares of restricted stock to David Dugas, Chief Executive Officer and 28,000,000 shares of restricted stock to Tony Primeaux Vice President for their provision of personal guarantees on the Transfac financing agreement.

Common stock issued for services

On August 15, 2014, the Company issued 6,000,000 shares of its common stock to a vendor for services rendered the shares were valued at $60,000 and recorded as stock based compensation.

On September 2, 2014, the Company issued 9,500,000 shares of its common stock to a vendor for services rendered, the shares were valued at $95,000 and recorded as stock based compensation.

On December 31, 2014, the Company issued 200,000 shares of its common stock to a lease holder for services rendered, the shares were valued at $2,000 and recorded as stock based compensation.

On August 12, 2013, the Company issued 5,000,000 shares of its common stock to a vendor for settlement of related to services rendered. The shares were valued at $50,000 and recorded as stock based compensation.

On April 8, 2013, the Company executed a demand note for $150,000 with an annual interest rate of 8%. As part of the agreement the Company granted the holder 150,000 shares of common stock and warrants to purchase 150,000 shares of common stock at an exercise price of $0.15 through April 8, 2014. The Company determined the fair value of the common stock and warrants to be $10,500 and $2,458, respectively. The aggregate fair value of $12,958 was recognized as a debt discount which is being amortized to interest expense over the life of the debt. During the year ended December 31, 2013, the entire discount of $12,958 was amortized to interest expense.

On January 13, 2013, the Company issued 250,000 shares of its common stock to a vendor for settlement services rendered. The shares were valued at $20,000 was recorded as stock based compensation.

For the year ended December 31, 2013 the Company amortized an aggregate of $1,107,697 of stock based compensation resulting from stock and warrants.

Shares issued for forbearance agreement

On September 2, 2014, the Company issued 9,500,000 shares of its common stock to a vendor under a forbearance agreement, the shares were valued at $95,000 and recorded as stock based compensation.

Warrants issued

The following table reflects a summary of common stock warrants outstanding and warrant activity during 2014 and 2013:

	Number of warrants			Weighted Average Exercise Price			Weighted Average Term (Years)
Warrants outstanding at December 31, 2012		57,942,278		$	0.17			1.20
Granted during the period		5,150,000			0.08			4.84
Exercised during period		-			-			-
Forfeited during the period		-			-			-
Warrants outstanding at December 31, 2013		63,092,278		$	0.16			2.21
Granted during the period		-			-			-
Exercised during period		-			-			-
Forfeited during the period		(2,205,238	)		(0.09	)		-
Warrants outstanding at December 31, 2014		60,887,040		$	0.16			.67

The Common Stock warrants expire in years ended December 31 as follows:

Year	Amount
2015		43,122,334
2016		1,000,000
2017		11,764,706
2018		5,000,000
Total		60,887,040

On December 20, 2013 the Company agreed to issue one of the November 14, 2012 convertible debenture holders 5,000,000 warrants with an exercise price per share of the Common Stock $0.075, with a term of 5 years.

Stock Option Awards

During the year ended December 31, 2014 and December 31, 2013 the Company did not grant any stock options.

On July 29, 2011 shareholders approved the 2011 STOCK OPTION AND INCENTIVE PLAN which authorized up to 5,000,000 options shares. Under the plan the exercise price per share for the Stock covered by a Stock Option granted pursuant shall not be less than 100% of the Fair Market Value on the date of grant. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the option price of such Incentive Stock Option shall be not less than 110% of the Fair Market Value on the grant date. The term of each Stock Option shall be fixed but no Stock Option shall be exercisable more than ten years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the term of such Stock Option shall be no more than five years from the date of grant.

Stock option activity summary covering options is presented in the table below:

	Number of Shares			Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (years)
Outstanding at December 31, 2012		52,975,000			0.12		8.9
Granted		-			-		-
Exercised		-			-		-
Expired/Forfeited		(45,000	)		0.14		7.6
Outstanding at December 31, 2013		52,930,000		$	0.12		7.9
Granted		-			-		-
Exercised		-			-		-
Expired/Forfeited		(35,000	)		0.14		6.6
Outstanding at December 31, 2014		52,895,000		$	0.12		6.9
Exercisable at December 31, 2014		50,095,000		$	0.12		6.9
Exercisable at December 31, 2013		34,530,000		$	0.13		7.6

A summary of the Company’s nonvested options at December 31, 2014, and changes during the year ended December 31, 2014, is presented below:

	Options			Weighted Average Grant Date Fair Value
Non-vested, beginning of period		18,400,000		$	0.13
Granted		-		$	-
Vested		(15,600,000	)	$	0.15
Forfeited		—		$	—
Non-vested, end of period		2,800,000		$	0.12

The following tables summarize information about stock options outstanding and exercisable at December 31, 2014:

	Options Outstanding at December 31, 2014
Range of Exercise Prices	Number Outstanding		Weighted Remaining Contractual Life (years)	Weighted Average Exercise Price		Aggregate Intrinsic Value(1)
$0.09 to $0.10		28,250,000	7.7	$	0.10	$	-
$0.11 to $0.12		2,000,000	6.8	$	0.12	$	-
$0.13 to $0.15		22,645,000	6.0	$	0.15	$	-
$0.09 to $0.15		52,895,000	6.9	$	0.12	$	-

	Options Exercisable at December 31, 2014
Range of Exercise Prices	Number Exercisable		Weighted Remaining Contractual Life (years)	Weighted Average Exercise Price		Aggregate Intrinsic Value(1)
$0.09 to $0.10		25,450,000	7.7	$	0.09	$	-
$0.11 to $0.12		2,000,000	6.8	$	0.12	$	-
$0.13 to $0.15		22,645,000	6.0	$	0.15	$	-
$0.09 to $0.15		28,881,842	5.9	$	1.00	$	-

(1) The aggregate intrinsic value in the table represents the difference between the closing stock price on December 31, 2014 and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on December 31, 2014. No options were exercised during 2014.

During the year ended December 31, 2014, the Company recognized stock-based compensation expense of $705,680 related to stock options. As of December 31, 2014, there was approximately $684,323 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over the remaining vesting period. The aggregate intrinsic value of these options was $0 at December 31, 2014.

During the year ended December 31, 2013, the Company recognized stock-based compensation expense of $783,815 related to stock options. As of December 31, 2013, there was approximately $1,390,003 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over the remaining vesting period. The aggregate intrinsic value of these options was $0 at December 31, 2013.

Note 13 – Sale Leaseback of Equipment

On June 1, 2012 the Company completed a sale leaseback transaction of certain equipment for $304,879 in accordance Accounting Standard Codification (ASC) 840 – 40 “Sales-Leaseback Transactions”, the gain was deferred. The lease was accounted for as a capitalized lease, a financing method, with monthly payments of $22,200 through November, 2014. The proceeds from the sale where used to repay the debt on the equipment, see note 4 June 19, 2012 above. The Company will continue to reflect the book value of the equipment and related accumulated depreciation remain on the balance sheet and no sale was recognized. The sales price of the equipment is recorded as a capitalized lease obligation with a portion of each lease payment includes interest expense.

Note 14 – Discontinued Operations

On June 11, 2013, the board of directors decided to cease operations of various subsidiaries, including ESP Facility and Pipeline Services, Inc., ESP Advanced Technologies, Inc., ESP KUJV Limited Joint Venture and ESP Marketing Group LLC. The Board determined that certain activities should be closed and that unused assets, principally vehicles and equipment, be sold. The Company determined this action was a discontinued operation and those activities prior to this action were:

	Years Ended December 31,
	2014			2013
DISCONTINUED OPERATIONS
Sales, net	$	-		$	258,330
Cost of goods sold		(-	)		(125,540	)
General and administrative		(-	)		(463,035	)
Potential loss on assets held		(-	)		(13,758
Depreciation		(-	)		(21,418	)
Provision for income taxes		-			-
LOSS FROM DISCONTINUED OPERATIONS	$	(-	)	$	(365,421	)

The Board determined that certain activities should be closed and that unused assets, principally vehicles and equipment, be sold. The Company estimated the fair value of those assets to be sold and if the fair value was less than the net book value, an impairment loss was recognized. During the year ended December 31, 2013, the Company recognized an impairment loss on assets held for sale of $133,556. The book value of the remaining assets held for sale at December 31, 2013 was $216,092. During the year ended December 31, 2014 these assets were either sold, traded-in or returned to service. Additionally, at December 31, 2014 and December 31, 2013 the company has remaining liabilities associated with the discontinued operations of $78,095 and $90,792, respectively.

Note 15 – Commitments and Contingencies

Leases

The Company leases certain offices, facilities, equipment, and vehicles under non-cancelable operating leases at various dates through 2023. At December 31, 2014, future minimum contractual obligations were as follows:

	Facilities		Facilities subleased			Facilities net of sublease		Vehicles & Equipment
Year ending December 31, 2015	$	259,042	$	(153,772	)	$	105,270	$	139,576
Year ending December 31, 2016		258,170		(153,772	)		104,398		103,000
Year ending December 31, 2017		225,165		(115,329	)		109,836		59,381
Year ending December 31, 2018		106,500		(-	)		106,500		24,804
Year ending December 31, 2019		105,000		-			105,000		20,670
Thereafter		358,750		-			358,750		-
Total Minimum Lease Payments:	$	1,312,627	$	(422,873	)	$	889,754	$	347,431

On January 26, 2015 the Company entered into a three-year lease requiring monthly payment of $1,500 for our 4,000 square foot facility in Center, Texas.

On June 7, 2013 the Company subleased the Company’s Houston, Texas office, improvements and certain equipment to a non-related third party. The sublease became effective July 1, 2013 with the term of the sublease coinciding with the original lease by the Company. The Company determined the remaining lease cost plus amortization and depreciation on the remaining leasehold improvements and equipment exceeded the sublease income by $274,555 and reflected a loss on disposal.

On August 15, 2012 the Company entered into a five-year lease requiring monthly payment ranging from $11,083 to $11,775 for our primary office in The Woodlands, Texas.

On June 27, 2013 the Company relocated the Scott, Louisiana office and production facility to a different leased facility in Rayne, Louisiana. The unamortized leasehold improvement cost of $18,152 of the Scott, Louisiana facility was charged to amortization of leasehold improvements in the quarter.

In October 2010, the Company entered into a three-year commercial lease of a building requiring monthly payments of $3,750.

In March 2010, the Company entered into two, three-year commercial leases of a building requiring monthly payments of $4,000 and $2,400, respectively.

Contingent payable – Turf Chemistry

Alfredo Ledesma and Turf Chemistry, Inc. v. ESP Resources, Inc., ESP Petrochemicals, Inc. and Gerard Allen Primeaux

On June 16, 2011, Alfredo Ledesma and Turf Chemistry, Inc. filed their original Petition against ESP Resources, Inc., ESP Petrochemicals, Inc. and Gerard Allen Primeaux in the District Court, 93rd Judicial District, Hidalgo County, Texas. On August 19, 2011, ESP Resources, Inc. filed its Original Answer to the Original Petition. On January 23, 2012, Alfredo Ledesma and Turf Chemistry, Inc. filed their First Amended Original Petition. On April 11, 2012, Gerard Primeaux filed his Original Answer. On May 10, 2012, Alfredo Ledesma and Turf Chemistry, Inc. filed their Second Amended Original Petition. On January 17, 2014, Alfredo Ledesma and Turf Chemistry, Inc. filed their Third Amended Original Petition. The Petition alleged that ESP had breached, by failing to satisfy the terms of the agreement and pay the agreed upon amounts, the letter of intent to enter into an Asset Purchase Agreement between ESP and Ledesma and Turf, whereby ESP agreed to acquire the assets and liabilities of Turf and relieve Ledesma of certain debt obligations. On February 14, 2014, ESP Resources, Inc., ESP Petrochemicals, Inc. and Gerard Allen Primeaux filed their First Answer, Special Exceptions, Affirmative Defenses and Counterclaims. On or about April 25, 2014, all parties, without admitting liability, entered into and executed a Settlement Agreement and Release of Claims.

Legal proceedings

Daniel A. Spencer v. ESP Advanced Technologies, Inc.

The District Court of Caddo Parish, Louisiana entered a default judgment in favor of Daniel Spencer and against ESP Advanced Technologies, Inc. on October 17, 2013 for $3,500,000, together with future interest from October 14, 2013, until paid, at a rate of 20% per annum for default after service. All of the operations of ESP Advanced Technologies, Inc. were discontinued on June 11, 2013. The Company believes this judgment is without merit and will vigorously pursue post-judgment remedies to set aside the judgment and have it annulled under Louisiana law. Management does not consider the potential for loss to be probable. Accordingly, the judgment amount was not accrued.

ESP Petrochemicals, Inc. v. Shane Cottrell, Platinum Chemicals, LLC, Ladd Naquin, Joe Lauer, Patrick Williams, Ralph McClelland and Ronald Walling

On March 2, 2012, the Company filed a trade secret infringement lawsuit to protect its rights against a former employee, a competitor and officers of the competitor. On November 21, 2012, an Agreed Final Judgment was entered in the lawsuit against the Defendants. Under the terms of the Agreed Final Judgment, the Defendants cannot offer or sell any chemical product or related services to a number of entities or in conjunction with any operations within designated Texas Railroad Commission districts for specified periods of time as long as ESP Petrochemicals is in conformance with the terms of the Agreed Final Judgment. The name of the entities, the lists of designated districts and the specific time periods are delineated in the Agreed Final Judgment. Additionally, the Defendants are not to solicit or recruit any ESP Petrochemical employees, they must turn over any “ESP Information” (as that term is described in the Agreed Final Judgment) and they cannot directly or indirectly, offer, market, advertise, promote or otherwise describe in any way a product to a customer, prospective customer or third party, as being derived from ESP Petrochemical formula or an equivalent.

Madoff Energy Holdings, LLC v. ESP Resources, Inc.

BWC Management, Inc. v. ESP Resources, Inc. (f/k/a Pantera Petroleum, Inc.)

On April 25, 2013, BWC Management, Inc. filed its Original Petition against ESP Resources, Inc. in the District Court, 113th Judicial District, Harris County, Texas. On May 31, 2013, ESP Resources, Inc. filed its Original Answer. On August 5, 2014, BWC filed its Motion for Partial Summary Judgment against ESP. On August 21, 2014, BWC filed its First Amended Petition against ESP alleging that ESP had defaulted on three promissory notes documenting a series of loans with BWC as lender: a promissory note in sum of $73,006.00, due on September 30, 2012; and two promissory notes in sum of $100,000.00, each, due on September 30, 2012 when ESP allegedly failed to pay the $73,006.00 note. On August 25, 2014, ESP filed its Response to BWC’s Motion for Partial Summary Judgment. On August 25, 2014, BWC filed its Reply to ESP’s Response to BWC’s Motion for Partial Summary Judgment. On August 27, 2014, ESP filed its Sur Reply to BWC’s Reply to ESP’s Response to BWC’s Motion for Partial Summary Judgment. On August 28, 2014, ESP filed a No-Evidence Motion for Summary Judgment against BWC. On September 4, 2014, BWC filed its Response to ESP’s No-Evidence Motion for Summary Judgment. On September 12, 2014, ESP filed its Reply to BWC’s Response to ESP’s No-Evidence Motion for Summary Judgment. On September 15, 2014, the Court issued an Order denying BWC’s Motion for Summary Judgment. On October 27, 2014, the Court issued an Order denying final Summary Judgment. Trial of this action was held on March 30 and March 31, 2015 resulting in a verdict for BWC Management, Inc.

Note 16 – Related Party Transactions

As of December 31, 2014 and December 31, 2013, the Company had balances due to related parties as follows:

	December 31, 2014		December 31, 2013
Due to officer	$	356,583	$	419,382
Due to ESP Enterprises		55,790		55,790
Total due to related parties	$	412,373	$	475,172

The above balances are unsecured, due on demand and bear no interest.

On June 1, 2013, the Officers agreed to defer a portion of their salaries until such time as cash flow allowed. As of September 30, 2014, $106,667 has been deferred and reflected as a liability due to related parties.

On July 10, 2012 the Company granted a total of 14,000,000 options to members of the Board of Directors, the options have a term of 10 years, an exercise price of $0.10 per share and vest at 20% per year and 250,000 options to a member of the Board of Directors, the option has an exercise price of $0.10 per share and vest immediately and used the Black-Scholes method to determine fair value. For the period from grant to December 31, 2013 $159,727 was recorded as stock based compensation.

On July 10, 2012 the Company granted 6,500,000 shares of restricted stock to the Company’s Chief Executive Officer, the shares were valued at $650,000 on the date of the grant. The restricted stock vests at a rate of 20% per year on the anniversary date of the grant and $32,500 was recorded as stock based compensation for the period from the grant date to September 30, 2012.

On November 23, 2012 the Company granted a total of 13,000,000 options to members of the Board of Directors, the options have a term of 10 years, an exercise price of $0.09 per share and vest at 20% every six months and 1,000,000 options to a member of the Board of Directors, the option has an exercise price of $0.09 per share and vest immediately and used the Black-Scholes method to determine fair value. For the period from grant to December 31, 2013 $320,078 was recorded as stock based compensation.

On November 23, 2012 the Company granted 5,000,000 shares of restricted stock to the Company’s Chief Executive Officer. The shares were valued at $400,000 and were recorded as stock based compensation for the period.

Note 17 – Guarantee Liability

On November 3, 2008, ESP provided a guarantee to a director of Aurora and Boreal who loaned $120,000 to Aurora and Boreal. ESP provided this guarantee to encourage the director’s continued employment and commitment to the development of the concessions held by Aurora and Boreal, which the Company believed was vital to the future success of Aurora and Boreal. In the event that Aurora and Boreal did not repay the loan by the due date of June 1, 2009, ESP guaranteed to make the payment in the form of a convertible note due June 1, 2011. The convertible note is non-interest bearing and is convertible into common stock of ESP at $1.20 per share. In exchange for issuing the convertible note to the director, ESP will receive the right to receive payments under the director’s note receivable from Aurora and Boreal.

ESP recorded the fair value of the guarantee liability at $48,000, which represented the fair value of the note receivable from Aurora and Boreal which ESP would take over from the director. On June 1, 2009 when Aurora and Boreal did not make the required payments on their notes payable to the director, ESP determined that the value of the guarantee liability should be increased to the full face amount of the guaranteed note of $120,000, resulting in a loss on guarantee liability of $72,000 during the year ended December 31, 2010. There have been no changes in the matter during 2013 and 2014, hence the balance remains same.

Filing Compare · ESP Resources, Inc.