Iconic Brands, Inc.

Effective April 1, 2018, the Company executed Employment Agreements with its Chief Executive Officer Richard DeCicco (the “DeCicco Employment Agreement”) and its Vice President of Sales and Marketing Roseann Faltings (the “Faltings Employment Agreement” and together with the DeCicco Employment Agreement, the “Employment Agreements”). Both agreements had a term of 24 months (to June 30, 2020) and have continued thereafter under the same terms. The DeCicco Employment Agreement provides for a base salary at the rate of $265,000 per annum. The Faltings Employment Agreement provides for a base salary at the rate of $150,000 per annum. For the year ended December 31, 2019, we accrued a total of $415,000 officers compensation pursuant to the Employment Agreements which was allocated 50% to Iconic ($207,500), 40% to Bellissima ($166,000), and 10% to BiVi ($41,500). For the year ended December 31, 2020, we accrued a total of $415,000 officers compensation pursuant to the Employment Agreements which was allocated 50% to Iconic ($207,500) and 50% to Bellissima ($207,500). For the three months ended March 31, 2021, we accrued a total of $103,750 officers compensation pursuant to the Employment Agreements which were allocated 50% to Iconic ($51,875) and 50% to Bellissima ($51,875).

Officers compensation was $103,750 for the three months ended March 31, 2021 and $103,750 for the three months ended March 31, 2020.

Effective April 1, 2018, we executed Employment Agreements with our Chief Executive Officer Richard DeCicco (“DeCicco”) and its Vice President of Sales and Marketing Roseann Faltings (“Faltings”). Both agreements have a term of 24 months (to March 31, 2020). The DeCicco Employment Agreement provides for a base salary at the rate of $265,000 per annum and a compensation stock award of 300,000 shares of Iconic common stock (the “DeCicco Award”) issuable upon the effective date of the planned reverse stock split. The DeCicco Award has been issued as of the date of this Quarterly Report. The Faltings Employment Agreement provides for a base salary at the rate of $150,000 per annum and a compensation stock award of 100,000 shares of Iconic common stock (the “Faltings Award”) issuable upon the effective date of the planned reverse stock split. The Faltings Award has been issued as of the date of this Quarterly Report. As of December 31, 2019, we accrued a total of $415,000 officers’ compensation pursuant to these two Employment Agreements that had not been paid.

Professional and consulting fees were $158,903 for the three months ended March 31, 2021 and $186,789 for the three months ended March 31, 2020, a decrease of $27,886. Professional and consulting fees consist primarily of legal and, accounting and auditing services. The decrease of approximately $27,886 from 2020 to 2021 was related to lower legal costs as a result of closing a financing transaction in 2020.

The net loss attributable to Iconic Brands, Inc. was $(666,954) for the three months ended March 31, 2021 and ($837,920) for the three months ended March 31, 2020, a decrease of $170,966 or approximately 20%. The net loss from Iconic Brands decreased primarily as a result of increased sales, lower operating costs and income generated from non-controlling interests.

Our cash decreased $113,221 and total current assets decreased $136,598. Our total current liabilities increased $318,365 as our accounts payable and accrued expenses increased. Our total liabilities increased $318,365. Our stockholders’ equity decreased from $(1,828,123) to $(2,298,151) due primarily to the operating loss in the quarter.