UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: ~~June~~September 30, 2023

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

Commission File Number: 333-150029

BERGIO INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Wyoming

27-1338257

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

12 Daniel Road E.

Fairfield, NJ 07004

(Address of principal executive offices)

(973) 227-3230

(Registrant’s telephone number, including area code)

Title of each class

Trading Symbol(s)

Name of each exchange

on which registered

N/A

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

Common Stock $.00001 par value

(Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months, 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 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 ☒ 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 check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 11,~~November 13, 2023 there were ~~97,070,203~~568,443,365 shares outstanding of the registrant’s common stock.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	3134
Item 3. Quantitative and Qualitative Disclosures about Market Risk	3740
Item 4. Controls and Procedures	3740
PART II - OTHER INFORMATION	3841
Item 1. Legal Proceedings	3841
Item 1A. Risk Factors	3841
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	3841
Item 3. Defaults upon Senior Securities	3841
Item 4. Mine Safety Disclosure	3841
Item 5. Other Information	3841
Item 6. Exhibits	3842
SIGNATURES	3943

iii

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(Unaudited)				(Unaudited)
ASSETS:

Current assets:
Cash	$	146,838	$	464,248	$	47,183	$	464,248
Accounts receivable		132,078		119,931		131,475		119,931
Inventory		2,881,323		2,855,585		2,824,830		2,855,585
Prepaid expenses and other current assets		2,600		700		13,545		700
Total current assets		3,162,839		3,440,464		3,017,033		3,440,464

Property and equipment, net		36,112		50,164		26,579		50,164
Goodwill		5,681,167		5,681,167		5,681,167		5,681,167
Intangible assets, net		148,341		269,319		87,852		269,319
Operating lease right of use assets		104,432		24,595		95,815		24,595
Investment in unconsolidated affiliate		6,603		6,603		6,603		6,603

Total Assets	$	9,139,494	$	9,472,312	$	8,915,049	$	9,472,312

LIABILITIES AND STOCKHOLDERS’ EQUITY:

Current liabilities:
Accounts payable and accrued liabilities	$	1,681,536	$	1,851,432	$	1,768,519	$	1,851,432
Bank overdraft		-		11,582		3,945		11,582
Accrued compensation - CEO		308,572		319,640		467,879		319,640
Notes payable - current portion, net of debt discount		768,717		702,504		701,862		702,504
Convertible notes payable, net of debt discount		170,258		19,324		202,159		19,324
Mandatorily redeemable Preferred Stock Series E - $1.00 stated value, 2,500,000 shares designated and authorized, 317,000 issued and outstanding at September 30, 2023						317,000		-
Loans and advances payable including accrued interest		1,379,567		1,072,089		1,415,844		1,072,089
Advances from CEO and accrued interest		260,861		142,854		357,571		142,854
Derivative liability - convertible debt		591,251		108,594		639,154		108,594
Derivative liability - acquisition		72,431		7,914		21,426		7,914
Operating lease liabilities - current		32,325		18,072		28,020		18,072
Total current liabilities		5,265,518		4,254,005		5,923,379		4,254,005

Long-term liabilities:
Notes payable - long-term		260,153		259,496		260,138		259,496
Operating lease liabilities - long-term		72,107		6,524		67,795		6,524
Total long term liabilities		332,260		266,020		327,933		266,020

Total Liabilities		5,597,778		4,520,025		6,251,312		4,520,025

Preferred stock - Series E - $0.00001 par value, 2,500,000 shares authorized, 317,000 shares and none shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively ($1 per share liquidation value)		317,000		-

Commitments and contingencies		-		-		-		-

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

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

- CONTINUED -

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(Unaudited)				(Unaudited)
Stockholders’ equity
Preferred stock 10,000,000 shares authorized Series A preferred stock - $0.001 par value, 75 shares authorized, 75 and 75 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		-		-
Convertible Series B preferred stock - $0.00001 par value, 4,900 shares authorized, 3,000 and 3,000 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively ($100 per share liquidation value)		-		-
Convertible Series C preferred stock - $0.00001 par value, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively ($100 per share liquidation value)		-		-
Convertible Series D preferred stock - $0.00001 par value, 2,500,000 shares authorized, 957,000 and 1,274,000 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively ($1 per share liquidation value)		10		13
Common stock, $0.00001 par value; 25,000,000,000 shares authorized, 74,071,275 and 12,316,954 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		741		123
Common stock issuable (1,000,000) shares as of June 30, 2023 and December 31, 2022		10		10
Preferred stock 10,000,000 shares authorized Series A preferred stock - $0.001 par value, 75 shares authorized, 75 and 75 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively						-		-
Convertible Series B preferred stock - $0.00001 par value, 4,900 shares authorized, 3,000 and 3,000 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively ($100 per share liquidation value)						-		-
Convertible Series C preferred stock - $0.00001 par value, 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively ($100 per share liquidation value)						-		-
Convertible Series D preferred stock - $0.00001 par value, 2,500,000 shares authorized, 957,000 and 1,274,000 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively ($1.00 per share liquidation value)						10		13
Common stock, $0.00001 par value; 25,000,000,000 shares authorized, 153,160,405 and 12,316,954 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively						1,531		123
Common stock issuable (12,300,000 and 1,000,000 shares as of September 30, 2023 and December 31, 2022, respectively)						123		10
Additional paid-in capital		25,907,131		26,102,888		25,858,268		26,102,888
Accumulated deficit		(20,844,140)		(19,605,358)		(21,188,783)		(19,605,358)
Total Bergio International, Inc. stockholders’ equity		5,063,752		6,497,676		4,671,149		6,497,676

Non-controlling interest in subsidiaries		(1,839,036)		(1,545,389)		(2,007,412)		(1,545,389)

Total Stockholders’ equity		3,224,716		4,952,287		2,663,737		4,952,287

Total Liabilities and Stockholders’ Equity	$	9,139,494	$	9,472,312	$	8,915,049	$	9,472,312

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

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,				For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022		2023		2022		2023		2022

Net revenues	$	1,409,422	$	2,458,531	$	2,797,785	$	4,415,032	$	869,472	$	1,318,851	$	3,667,257	$	5,733,883
Net revenues - related parties		-		666		-		139,716		-		-		-		139,716
Total net revenues		1,409,422		2,459,197		2,797,785		4,554,748		869,472		1,318,851		3,667,257		5,873,599

Cost of revenues		609,327		990,650		1,377,988		2,237,387		499,409		595,063		1,877,397		2,832,043

Gross profit		800,095		1,468,547		1,419,797		2,317,361		370,063		723,788		1,789,860		3,041,556

Operating expenses:
Selling and marketing expenses		173,655		914,053		533,835		1,635,157		115,834		405,422		649,669		2,040,986
Professional and consulting expenses		437,539		557,662		969,813		1,111,614		331,476		495,737		1,301,289		1,607,351
Compensation and related expenses		164,508		377,256		332,710		657,274		168,757		385,006		501,467		1,042,280
General and administrative expenses		226,773		240,893		452,900		498,590		196,599		248,911		649,499		747,501

Total operating expenses		1,002,475		2,089,864		2,289,258		3,902,635		812,666		1,535,076		3,101,924		5,438,118

Loss from operations		(202,380)		(621,317)		(869,461)		(1,585,274)		(442,603)		(811,288)		(1,312,064)		(2,396,562)

Other income (expenses)
Interest expense		(173,771)		26,281		(331,229)		(1,068,952)		(59,662)		(61,070)		(390,891)		(1,130,022)
Derivative expense		(351,712)		-		(351,712)		(16,900)		(174,190)		(7,403)		(525,902)		(24,303)
Amortization of debt discount and deferred financing cost		(155,120)		(84,654)		(174,661)		(402,494)		(67,663)		(73,073)		(242,324)		(475,567)
Loss from foreign currency transactions		(1,038)		(1,563)		(2,782)		(5,488)		(316)		(3,530)		(3,098)		(9,018)
Fraud loss caused by computer hackers		-		(1,407)		-		(20,807)		-		(481)		-		(21,288)
Change in fair value of derivative liabilities		83,385		379,338		(52,766)		556,554		171,852		12,554		119,086		569,108
Interest income		-		197		-		361		2		66		2		427
Other income		-		6,096		-		17,905		2,127		1,160		2,127		19,065
Gain from forgiveness of accounts payable		231,806		-		231,806		-		-		-		231,806		-
Gain from extinguishment of debt, net		40,304		111,649		40,304		261,404		74,928		87,910		115,232		349,314
Total other income (expenses), net		(326,146)		435,937		(641,040)		(678,417)
Total other expenses, net										(52,922)		(43,867)		(693,962)		(722,284)

Loss before provision for income taxes		(528,526)		(185,380)		(1,510,501)		(2,263,691)		(495,525)		(855,155)		(2,006,026)		(3,118,846)

Provision for income taxes		-		-		-		-		-		-		-		-

Net loss		(528,526)		(185,380)		(1,510,501)		(2,263,691)		(495,525)		(855,155)		(2,006,026)		(3,118,846)

Losses attributable to non-controlling interest		(21,273)		205,891		293,647		698,616		168,376		273,451		462,023		972,067

Net income (loss) attributable to Bergio International, Inc.	$	(549,799)	$	20,511	$	(1,216,854)	$	(1,565,075)
Net loss attributable to Bergio International, Inc.									$	(327,149)	$	(581,704)	$	(1,544,003)	$	(2,146,779)

Deemed dividend		-		(740,878)		-		(1,555,878)		(7,623)		-		(7,623)		(1,555,878)

Net loss available to Bergio International, Inc. common stockholders	$	(549,799)	$	(720,367)	$	(1,216,854)	$	(3,120,953)	$	(334,772)	$	(581,704)	$	(1,551,626)	$	(3,702,657)

Net loss per common share:
Basic and diluted		(0.02)		0.00		(0.06)		(0.63)		(0.00)		(0.08)		(0.03)		(0.65)

Weighted average common shares outstanding:
Basic and diluted		27,164,875		5,899,188		19,783,208		4,970,773		105,885,217		7,139,646		49,462,273		5,704,362

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

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

For the ~~Six~~Nine Months Ended ~~June~~September 30, 2023 and 2022

(Unaudited)

Series A Preferred Stock

Series B Preferred Stock

Series D Preferred Stock

Common Stock

Common Stock Issuable

Shares

Amount

Shares

Amount

Shares

Amount

Shares

Amount

Shares

Amount

Additional
Paid In
Capital

Accumulated
Deficit

Non-controlling
Interest

Total
Stockholders’
Equity (Deficit)
Balance, December 31, 2022
75

$
-

3,000

$
-

1,274,000

$
13

12,316,954

$
123

1,000,000

$
10

$
26,102,888

$
(19,605,358)

$
(1,545,389)

$
4,952,287

Series D preferred stock exchange
for Series E preferred stock
-

-

-

-

(317,000)

(3)

-

-

-

-

3

-

-

-
Reclassification of Series E
preferred stock to mezzanine debt
-

-

-

-

-

-

-

-

-

-

(317,000)

-

-

(317,000)
Fractional shares due to 1:500
reverse stock split
-

-

-

-

-

-

2,568

-

-

-

-

-

-

-
Dividends on preferred stock
-

-

-

-

-

-

-

-

-

-

-

(10,903)

-

(10,903)
Net loss
-

-

-

-

-

-

-

-

-

-

-

(667,055)

(314,920)

(981,975)
Balance, March 31, 2023
75

-

3,000

-

957,000

10

12,319,522

123

1,000,000

10

25,785,891

(20,283,316)

(1,860,309)

3,642,409

Issuance of common stock
for debt conversion including
accrued interest and fees
-

-

-

-

-

-

11,751,753

118

-

-

21,740

-

-

21,858
Issuance of common stock for
accrued compensation - CEO
-

-

-

-

-

-

50,000,000

500

-

-

99,500

-

-

100,000
Dividends on preferred stock
-

-

-

-

-

-

-

-

-

-

-

(11,025)

-

(11,025)
Net loss
-

-

-

-

-

-

-

-

-

-

-

(549,799)

21,273

(528,526)
Balance, June 30, 2023
75

$
-

3,000

$
-

957,000

$
10

74,071,275

$
741

1,000,000

$
10

$
25,907,131

$
(20,844,140)

$
(1,839,036)

$
3,224,716

Nine Months Ended September 30, 2023

	Series A Preferred Stock			Series B Preferred Stock			Series D Preferred Stock			Common Stock			Common Stock Issuable
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid In Capital		Accumulated Deficit		Non-controlling Interest		Total Stockholders’ Equity (Deficit)
Balance, December 31, 2022	75	$	-	3,000	$	-	1,274,000	$	13	12,316,954	$	123	1,000,000	$	10	$	26,102,888	$	(19,605,358)	$	(1,545,389)	$	4,952,287

Series D preferred stock exchange for Series E preferred stock	-		-	-		-	(317,000)		(3)	-		-	-		-		3		-		-		-
Reclassification of Series E preferred stock to mezzanine debt	-		-	-		-	-		-	-		-	-		-		(317,000)		-		-		(317,000)
Fractional shares due to 1:500 reverse stock split	-		-	-		-	-		-	2,568		-	-		-		-		-		-		-
Dividends on preferred stock	-		-	-		-	-		-	-		-	-		-		-		(10,903)		-		(10,903)
Net loss	-		-	-		-	-		-	-		-	-		-		-		(667,055)		(314,920)		(981,975)
Balance, March 31, 2023	75		-	3,000		-	957,000		10	12,319,522		123	1,000,000		10		25,785,891		(20,283,316)		(1,860,309)		3,642,409

Issuance of common stock for debt conversion including accrued interest and fees	-		-	-		-	-		-	11,751,753		118	-		-		21,740		-		-		21,858
Issuance of common stock for accrued compensation - CEO	-		-	-		-	-		-	50,000,000		500	-		-		99,500		-		-		100,000
Dividends on preferred stock	-		-	-		-	-		-	-		-	-		-		-		(11,025)		-		(11,025)
Net loss	-		-	-		-	-		-	-		-	-		-		-		(549,799)		21,273		(528,526)
Balance, June 30, 2023	75		-	3,000		-	957,000		10	74,071,275		741	1,000,000		10		25,907,131		(20,844,140)		(1,839,036)		3,224,716

Issuance of common stock for debt conversion including accrued interest and fees	-		-	-		-	-		-	125,446,273		1,254	11,300,000		113		36,263		-		-		37,630
Return of common stock previously issued for accrued compensation - CEO	-		-	-		-	-		-	(50,000,000)		(500)	-		-		(99,500)		-		-		(100,000)
Issuance of common stock for conversion of Series D preferred stock accrued dividends	-		-	-		-	-		-	3,642,857		36	-		-		8,862		(7,623)		-		1,275
Stock warrants granted in connection with convertible notes	-		-	-		-	-		-	-		-	-		-		5,512		-		-		5,512
Dividends on preferred stock	-		-	-		-	-		-	-		-	-		-		-		(9,871)		-		(9,871)
Net loss	-		-	-		-	-		-	-		-	-		-		-		(327,149)		(168,376)		(495,525)
Balance, September 30, 2023	75	$	-	3,000	$	-	957,000	$	10	153,160,405	$	1,531	12,300,000	$	123	$	25,858,268	$	(21,188,783)	$	(2,007,412)	$	2,663,737

Series A Preferred Stock

Series B Preferred Stock

Series C Preferred Stock

Series D Preferred Stock

Common Stock

Common Stock Issuable

Shares

Amount

Shares

Amount

Shares

Amount

Shares

Amount

Shares

Amount

Shares

Amount

Additional
Paid In
Capital

Treasury
Stock

Accumulated
Deficit

Non-controlling
Interest

Total
Stockholders’
Equity (Deficit)
Balance, December 31, 2021
75

$
-

3,000

$
-

5

$
-

-

$
-

2,433,039

$
24

32,044

$
-

$
18,646,446

$
103,700

$
(14,452,396)

$
(557,472)

$
3,740,303

Series D preferred stock issued
for cash, net of offering cost
-

-

-

-

-

-

855,000

9

-

-

-

-

814,991

-

-

-

815,000
Deemed dividend upon issuance
of Series D preferred stock
-

-

-

-

-

-

-

-

-

-

-

-

815,000

-

(815,000)

-

-
Issuance of common stock
for debt conversion including
accrued interest and fees
-

-

-

-

-

-

-

-

2,825,354

28

-

-

2,285,628

-

-

-

2,285,656
Accretion of stock-based
compensation for services
-

-

-

-

-

-

-

-

-

-

-

-

15,621

-

-

-

15,621
Dividends on preferred stock
-

-

-

-

-

-

-

-

-

-

-

-

-

-

(6,563)

-

(6,563)
Cancellation of treasury stock
-

-

-

-

-

-

-

-

-

-

-

-

103,700

(103,700)

-

-

-
Net loss
-

-

-

-

-

-

-

-

-

-

-

-

-

(1,585,586)

(492,725)

(2,078,311)
Balance, March 31, 2022
75

-

3,000

-

5

-

855,000

9

5,258,393

53

32,044

-

22,681,386

-

(16,859,545)

(1,050,197)

4,771,706

Series D preferred stock issued
for cash, net of offering cost
-

-

-

-

-

-

825,000

8

-

-

-

-

739,992

-

-

-

740,000
Deemed dividend upon issuance
of Series D preferred stock
-

-

-

-

-

-

-

-

-

-

-

-

740,000

-

(740,000)

-

-
Issuance of common stock for
conversion of Series C preferred stock
-

-

-

-

(5)

-

-

-

135,896,517

1,359

-

-

(1,359)

-

-

-

-
Reclassification of derivative
liability to equity upon conversion
of Series C preferred stock
-

-

-

-

-

-

-

-

-

-

-

-

67,284

-

-

-

67,284
Issuance of common stock
for debt conversion including
accrued interest and fees
-

-

-

-

-

-

-

-

232,079,442

2,321

-

-

110,779

-

-

-

113,100
Issuance of common stock
for common stock issuable
-

-

-

-

-

-

-

-

16,021,937

160

(16,021,937)

(160)

-

-

-

-

-
Cashless exercise of stock warrants
-

-

-

-

-

-

-

-

54,500,000

545

-

-

333

-

(878)

-

-
Accretion of stock-based
compensation for services
-

-

-

-

-

-

-

-

-

-

-

-

15,621

-

-

-

15,621
Dividends on preferred stock
-

-

-

-

-

-

-

-

-

-

-

-

-

-

(7,669)

-

(7,669)
Net loss
-

-

-

-

-

-

-

-

-

-

-

-

-

20,511

(205,891)

(185,380)
Balance, June 30, 2022
75

$
-

3,000

$
-

-

$
-

1,680,000

$
17

443,756,289

$
4,438

(15,989,893)

$
(160)

$
24,354,036

$
-

$
(17,587,581)

$
(1,256,088)

$
5,514,662

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

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

For the Nine Months Ended September 30, 2023 and 2022

(Unaudited)

Nine Months Ended September 30, 2022

	Series A Preferred Stock			Series B Preferred Stock			Series C Preferred Stock			Series D Preferred Stock			Common Stock			Common Stock Issuable
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid In Capital		Treasury Stock		Accumulated Deficit		Non-controlling Interest		Total Stockholders’ Equity (Deficit)
Balance, December 31, 2021	75	$	-	3,000	$	-	5	$	-	-	$	-	2,433,039	$	24	32,044	$	-	$	18,646,446	$	103,700	$	(14,452,396)	$	(557,472)	$	3,740,303

Series D preferred stock issued for cash, net of offering cost	-		-	-		-	-		-	855,000		9	-		-	-		-		814,991		-		-		-		815,000
Deemed dividend upon issuance of Series D preferred stock	-		-	-		-	-		-	-		-	-		-	-		-		815,000		-		(815,000)		-		-
Issuance of common stock for debt conversion including accrued interest and fees	-		-	-		-	-		-	-		-	2,825,354		28	-		-		2,285,628		-		-		-		2,285,656
Accretion of stock-based compensation for services	-		-	-		-	-		-	-		-	-		-	-		-		15,621		-		-		-		15,621
Dividends on preferred stock	-		-	-		-	-		-	-		-	-		-	-		-		-		-		(6,563)		-		(6,563)
Cancellation of treasury stock	-		-	-		-	-		-	-		-	-		-	-		-		103,700		(103,700)		-		-		-
Net loss	-		-	-		-	-		-	-		-	-		-	-		-				-		(1,585,586)		(492,725)		(2,078,311)
Balance, March 31, 2022	75		-	3,000		-	5		-	855,000		9	5,258,393		53	32,044		-		22,681,386		-		(16,859,545)		(1,050,197)		4,771,706

Series D preferred stock issued for cash, net of offering cost	-		-	-		-	-		-	825,000		8	-		-	-		-		739,992		-		-		-		740,000
Deemed dividend upon issuance of Series D preferred stock	-		-	-		-	-		-	-		-	-		-	-		-		740,000		-		(740,000)		-		-
Issuance of common stock for conversion of Series C preferred stock	-		-	-		-	(5)		-	-		-	271,793		3	-		-		(3)		-		-		-		-
Reclassification of derivative liability to equity upon conversion of Series C preferred stock	-		-	-		-	-		-	-		-	-		-	-		-		67,284		-		-		-		67,284
Issuance of common stock for debt conversion including accrued interest and fees	-		-	-		-	-		-	-		-	464,159		5	-		-		113,095		-		-		-		113,100
Issuance of common stock for common stock issuable	-		-	-		-	-		-	-		-	32,044		-	(32,044)		-		-		-		-		-		-
Cashless exercise of stock warrants	-		-	-		-	-		-	-		-	109,000		1	-		-		877		-		(878)		-		-
Accretion of stock-based compensation for services	-		-	-		-	-		-	-		-	-		-	-		-		15,621		-		-		-		15,621
Accrued dividends on preferred stock	-		-	-		-	-		-	-		-	-		-	-		-		-		-		(7,669)		-		(7,669)
Net loss	-		-	-		-	-		-	-		-	-		-	-		-				-		20,511		(205,891)		(185,380)
Balance, June 30, 2022	75		-	3,000		-	-		-	1,680,000		17	6,135,389		62	-				24,358,252		-		(17,587,581)		(1,256,088)		5,514,662

Reclassification of derivative liability to equity upon conversion of Series C preferred stock	-		-	-		-	-		-	-		-	832,000		8	-		-		83,192		-		-		-		83,200
Issuance of common stock for conversion of Series D preferred stock accrued dividends	-		-	-		-	-		-	(245,000)		(3)	1,002,440		10	-		-		5,603		-		-		-		5,610
Common stock issuable for services to CEO	-		-	-		-	-		-	-		-	-		-	1,000,000		10		149,990		-		-		-		150,000
Common stock issuable for services	-		-	-		-	-		-	-		-	25,714		0	-		-		9,000		-		-		-		9,000
Accretion of stock-based compensation for services	-		-	-		-	-		-	-		-	-		-	-		-		23,432		-		-		-		23,432
Accrued dividends on preferred stock	-		-	-		-	-		-	-		-	-		-	-		-		-		-		(13,706)		-		(13,706)
Net loss	-		-	-		-	-		-	-		-	-		-	-		-		-		-		(581,704)		(273,451)		(855,155)
Balance, September 30, 2022	75	$	-	3,000	$	-	-	$	-	1,435,000	$	14	7,955,543	$	80	1,000,000	$	10	$	24,629,469	$	-	$	(18,182,991)	$	(1,529,539)	$	4,917,043

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

BERGIO INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to Bergio International, Inc.	$	(1,216,854)	$	(1,565,075)	$	(1,544,003)	$	(2,146,779)
Adjustments to reconcile net loss to net cash used in operating activities
Non-controlling interest in subsidiaries		(293,647)		(698,616)		(462,023)		(972,067)
Amortization expense		120,978		120,978		181,467		181,467
Depreciation expense		18,952		20,642		28,485		30,448
Stock-based compensation		-		31,242		-		213,674
Amortization of debt discount and deferred financing costs		174,661		402,494		242,324		475,567
Derivative expense		351,712		16,900		525,902		24,303
Change in fair value of derivative liabilities		52,766		(556,554)		(119,086)		(569,108)
Gain from forgiveness of accounts payable		(231,806)		-		(231,806)		-
Gain from extinguishment of debt		(40,304)		(261,404)		(115,232)		(349,314)
Non-cash interest upon conversion of debt		-		1,025,660		-		1,025,660
Amortization of right of use assets		9,993		(47,682)		9,993		(72,373)
Change in operating assets and liabilities:
Accounts receivable		(12,147)		(90,062)		(11,544)		(26,998)
Inventory		(25,738)		205,297		30,755		226,252
Prepaid expenses and other current assets		(1,900)		(52,655)		(12,845)		(34,457)
Accounts payable and accrued liabilities		338,411		(234,035)		460,849		(227,296)
Bank overdraft		(11,582)		-		(7,637)		-
Accrued compensation - CEO		88,932		403,460		148,239		319,765
Operating lease obligations		(9,994)		47,679		(9,994)		72,372
Subscription payable		-		(346,163)
Deferred compensation - CEO						-		(346,163)
NET CASH USED IN OPERATING ACTIVITIES		(687,567)		(1,577,894)		(886,156)		(2,175,047)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(4,900)		-		(4,900)		-
NET CASH USED IN INVESTING ACTIVITIES		(4,900)		-		(4,900)		-

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of preferred stock, net of offering cost		-		1,555,000		-		1,555,000
Proceeds from note payable		65,000		110,000		65,000		110,000
Proceeds from loans and advances payable		560,516		595,600		560,616		1,003,140
Proceeds from convertible notes, net of debt issuance cost		65,000		76,250		75,000		126,250
Repayment on note payable		-		(180,414)		-		(218,634)
Repayment on loans and advances payable		(419,408)		(641,406)		(419,408)		(776,804)
Repayment on secured notes payable		-		(400,000)		-		(400,000)
Advance from (payments to) Chief Executive Officer, net		103,949		(135,858)		192,783		(129,858)
NET CASH PROVIDED BY FINANCING ACTIVITIES		375,057		979,172		473,991		1,269,094

NET CHANGE IN CASH AND CASH EQUIVALENTS:		(317,410)		(598,722)		(417,065)		(905,953)
CASH AND CASH EQUIVALENTS – beginning of period		464,248		1,093,195		464,248		1,093,195
CASH AND CASH EQUIVALENTS – end of period	$	146,838	$	494,473	$	47,183	$	187,242

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	-	$	14,610	$	-	$	14,610
Income taxes	$	-	$	-	$	-	$	-

Non-cash investing and financing activities:
Issuance of common stock issued for convertible debt, loans payable, and accrued interest	$	21,858	$	1,373,096	$	59,488	$	1,456,296
Issuance of common stock issued for accrued compensation	$	100,000	$	-
Issuance of common stock issued for accrued dividends					$	1,275	$	-
Debt discount in connection with the issuance of stock warrants					$	5,512	$	-
Deemed dividend upon issuance of Series D preferred stock	$	-	$	1,555,878	$	-	$	1,555,878
Deemed dividend upon conversion of Series D preferred stock and accrued dividends					$	7,623	$
Initial amount of ROU asset and related liability	$	89,830	$	-	$	81,213	$	-
Initial derivative liability recorded in connection with convertible notes payable	$	183,000	$	76,250	$	252,488	$	126,250
Reclassification of derivative liability to equity upon conversion of Series C preferred stock	$	-	$	67,284	$	-	$	67,284

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

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Note 1 - Nature of Operations and Basis of Presentation

Organization and Nature of Operations

Bergio International, Inc. (the “Company”) was incorporated in the State of Delaware on July 24, 2007 under the name Alba Mineral Exploration, Inc. On October 21, 2009, as a result of a Share Exchange Agreement, the corporation’s name was changed to Bergio International, Inc. On February 19, 2020, the Company changed its state of incorporation to Wyoming. The Company is engaged in the product design, manufacturing, distribution of fine jewelry primarily in the United States and is headquartered in Fairfield, New Jersey. The Company’s intent is to take advantage of the Bergio brand and establish a chain of retail stores worldwide. The Company’s branded product lines are products and/or collections designed by the Company’s designer and CEO, Berge Abajian, and will be the centerpiece of the Company’s retail stores.

On February 10, 2021, the Company entered into an Acquisition Agreement (“Acquisition Agreement”) with Digital Age Business, Inc., a Florida corporation, (“Digital Age Business”), pursuant to which the shareholders of Digital Age Business agreed to sell all of the assets and liabilities of its Aphrodite’s business to a subsidiary of the Company known as Aphrodite’s Marketing, Inc. (“Aphrodite’s Marketing”), a Wyoming corporation in exchange for Series B Preferred Stock of the Company. The Company owns 51% of Aphrodite’s Marketing.

On July 1, 2021 (“Closing”), the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GearBubble, Inc., a Nevada corporation, (“GearBubble”), pursuant to which the shareholders of GearBubble (the “Equity Recipients”) agreed to sell 100% of the issued and outstanding shares of GearBubble to a subsidiary of the Company known as GearBubble Tech, Inc. (“GearBubble Tech”), a Wyoming corporation in exchange for $3,162,000 (the “Cash Purchase Price”), which shall be paid as follows: a) $2,000,000 (which was paid in cash at Closing), b) $1,162,000 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by the Company, and 49% of the Merger Sub shall be owned by the GearBubble Shareholders. The Company owns 51% of GearBubble Tech.

On March 24, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 1,000,000,000 shares to 3,000,000,000 shares. On July 9, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 3,000,000,000 shares to 6,000,000,000 shares. On April 28, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 6,000,000,000 shares to 9,000,000,000 shares.

On September 26, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 9,000,000,000 shares to 15,000,000,000 shares. In March 2023, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 15,000,000,000 shares to 25,000,000,000 shares. In the same Articles of Amendment, the Company filed for a reverse split of the Company’s common stock, at the ratio of 1 for 500 (the “Reverse Stock Split”), which was declared effective by Financial Industry Regulatory Authority (“FINRA”) effective April 17, 2023. All share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the unaudited condensed consolidated financial statements to reflect the Reverse Stock Split.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information, which includes consolidated interim financial statements and present the consolidated interim financial statements of the Company and its wholly-owned and majority-owned subsidiaries as of ~~June~~September 30, 2023. All intercompany transactions and balances have been eliminated. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows have been made. Those adjustments consist of normal and recurring adjustments. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2022, and footnotes thereto included in the Company’s Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2023 (the “Annual Report”). The results of operations for the ~~six~~nine months ended ~~June~~September 30, 2023, are not necessarily indicative of the results to be expected for the full year.

Impact of the COVID-19 Coronavirus

The Company’s operations have been affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it has resulted in a material adverse impact on the Company’s financial position, operations and cash flows. Areas affected include, but are not limited to, disruption to the Company’s customers and revenue, including a significant disruption in consumer demand and accessories, labor workforce, inability of customers to pay outstanding accounts receivable due and owing to the Company as they limit or shut down their businesses, customers seeking relief or extended payment plans relating to accounts receivable due and owing to the Company, unavailability of products and supplies used in operations, and the decline in value of assets held by the Company, including property and equipment. As such, the comparability of the Company’s operating results has been affected by significant adverse impacts related to the COVID-19 pandemic.

The Company has increased its online presence to minimize the impact of having to close its retail stores as well as directing efforts towards its wholesale operations. The Company increased its online presence through its majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech.

Non-controlling Interest in Consolidated Financial Statements

In December 2007, the Financial Accounting Standard Board (“FASB”) issued ASC 810-10-65, “Non-controlling Interests in consolidated financial statements, an amendment of Accounting Research Bulletin No. 51” (“SFAS No. 160”). This ASC clarifies that a non-controlling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the unaudited condensed consolidated financial statements. It also requires consolidated net income to include the amounts attributable to both the parent and non-controlling interest, with disclosure on the face of the consolidated income statement of the amounts attributed to the parent and to the non-controlling interest. In accordance with ASC 810-10- 45-21, those losses attributable to the parent and the non-controlling interest in subsidiaries may exceed their interests in the subsidiary’s equity. The excess and any further losses attributable to the parent and the non-controlling interest shall be attributed to those interests even if that attribution results in a deficit non-controlling interest balance.

On February 9, 2021, the Company entered into an Acquisition Agreement which resulted to the acquisition of 51% interest in Aphrodite’s Marketing. Additionally, on July 1, 2021, the Company entered into a Merger Agreement with GearBubble which resulted to the acquisition of 51% interest in the Merger Sub, GearBubble Tech. As of ~~June~~September 30, 2023 and December 31, 2022, the Company recorded a non-controlling interest balance of ~~$(1,839,036)~~$(2,007,412) and $(1,545,389), respectively, in connection with the majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech as reflected in the accompanying unaudited condensed consolidated balance sheet and losses

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

attributable to non-controlling interest of ~~$293,647~~$462,023 and ~~$698,616~~$972,067 during the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, respectively as reflected in the accompanying unaudited condensed consolidated statements of operations.

Note 2 - Going Concern

These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying unaudited condensed consolidated financial statements, the Company had a net loss attributable to Bergio International, Inc. and cash used in operations of ~~$1,216,854~~$1,544,003 and ~~$687,567,~~$886,156, respectively, for the ~~six~~nine months ended ~~June~~September 30, 2023. Additionally, the Company had an accumulated deficit of approximately ~~$20,844,140~~$21.2 million and working capital deficit of ~~$2,102,679~~approximately $2.9 million at ~~June~~September 30, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this report. Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive or raise additional capital pursuant to debt or equity financings. The Company may seek to raise additional capital through additional debt and/or equity financings to fund its operations in the future; however, no assurance can be provided that the Company will be able to raise additional capital on favorable terms, or at all. If the Company is unable to raise additional capital or secure additional lending in the future to fund its business plan, the Company may need to curtail or cease its operations.

The Company increased its online presence and provided for the expansion of the Company’s branded product lines. The acquired majority owned subsidiaries, Aphrodite Marketing and GearBubble Tech of which the Company owns 51%, will enhance the Company’s online presence and provide the opportunity for future growth. However, there can be no assurance that this venture will be successful or that the Company can raise the required capital to fund this operation.

These unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Note 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States which includes the Company, its wholly-owned and majority owned subsidiaries as of ~~June~~September 30, 2023. All significant inter-company accounts and transactions have been eliminated.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from estimates. Significant estimates during the ~~three~~nine months ended ~~June~~September 30, 2023 and 2022 include the estimates of useful lives of property and equipment and intangible assets, valuation of the operating lease liability and related right-of-use asset, valuation of derivatives, allowance for uncollectable receivables, valuation of equity based instruments issued for other than cash, the fair value of warrants issued with debt, the valuation allowance on deferred tax assets, and stock-based compensation.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Revenue Recognition

The Company applies ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASC 606 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASC 606 requires us to identify distinct performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. When distinct performance obligations exist, the Company allocates the contract transaction price to each distinct performance obligation. The standalone selling price, or our best estimate of standalone selling price, is used to allocate the transaction price to the separate performance obligations. The Company recognizes revenue when, or as, the performance obligation is satisfied.

Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Also, significant judgment may be required to determine the allocation of transaction price to each distinct performance obligation.

Generally, revenues are recognized at the time of shipment to the customer with the price being fixed and determinable and collectability assured, provided title and risk of loss is transferred to the customer. Provisions, when appropriate, are made where the right to return exists. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales.

The Company’s subsidiary, GearBubble Tech, recognizes revenue from three sources: (1) e-commerce revenue (2) platform subscription fees and (3) partner and services revenue.

•Revenues are recognized when the merchandise is shipped to the customer and title is transferred and are recorded net of any returns, and discounts or allowances. Shipping cost paid by customers are primarily for ecommerce sales and are included in revenue. Merchandise sales are fulfilled with inventory sourced through our suppliers. Therefore, the Company’s contracts have a single performance obligation (shipment of product).

The Company evaluates the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, and has the latitude in establishing pricing and selecting suppliers, among other factors. The ecommerce sellers have no further obligation to the customer after the promised goods are transferred to the customer. Based on its evaluation of these factors, we have determined we are the principal in these arrangements. Through our suppliers, we have the ability to control the promised goods and as a result, the Company records ecommerce sales on a gross basis.

The Company refunds the full cost of the merchandise returned and all original shipping charges if the returned item is defective or we or our partners have made an error, such as shipping the wrong product. If the return is not a result of a product defect or a fulfillment error and the customer initiate a return of an unopened item within 30 days of delivery, for most products we refund the full cost of the merchandise minus the original shipping charge and actual return shipping fees. If our customer returns an item that has been opened or shows signs of wear, the Company issues a partial refund minus the original shipping charge and actual return shipping fees.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

•The Company generally recognizes platform subscription fees in the month they are earned. Annual subscription payments received that are related to future periods are recorded as deferred revenue to be recognized as revenues over the contract term or period.

•Partner and services revenue is derived from: (1) partner marketing and promotion, and (2) non-recurring professional services. Revenue from partner marketing and promotion and non-recurring professional services is recognized as the service is performed.

Cost of revenues

Cost of revenue consists primarily of the cost of the merchandise, shipping fees, credit card processing services, fulfillment cost, ecommerce sellers’ pay-out; costs associated with operation and maintenance of the Company’s platform.

Marketing

The Company applies ASC 720 “Other Expenses” to account for marketing costs. Pursuant to ASC 720-35-25-1, the Company expenses marketing costs as incurred. Marketing costs include advertising and related expenses for third party personnel engaged in marketing and selling activities, including sales commissions, and third-party e-commerce platform fees and selling fees. The Company directs its customers to the Company’s ecommerce platform through social media, digital marketing, and promotional campaigns. Marketing costs were ~~$533,835~~$649,669 and ~~$1,635,157~~$2,040,986 for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, respectively, and marketing costs were ~~$173,655~~$115,834 and ~~$914,053~~$405,422 for the three months ended ~~June~~September 30, 2023 and 2022, respectively are included in selling and marketing expenses on the unaudited condensed consolidated statement of operations.

Shipping and Handling Costs

The Company accounts for shipping and handling fees in accordance with ASC 606. While amounts charged to customers for shipping products are included in revenues, the related costs of shipping products to customers are classified in selling and marketing expenses as incurred.

~~Reclassifications~~

Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassified amounts have no impact on the Company’s previously reported financial position or results of operations and relates to the presentation of certain selling and marketing expenses previously included in cost of revenues.

Fair Value of Financial Instruments

FASB ASC 820 - Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 requires disclosures about the fair value of all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about the fair value of financial instruments are based on pertinent information available to the Company on ~~June~~September 30, 2023. Accordingly, the estimates presented in these financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments. FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

The three levels of the fair value hierarchy are as follows:

Level 1:Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Level 2:Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3:Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash, prepaid expenses and other current assets, accounts payable and accrued liabilities, and accrued compensation approximate their fair market value based on the short-term maturity of these instruments.

In August 2018, the FASB issued ASU 2018-13,” Changes to Disclosure Requirements for Fair Value Measurements”, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements, and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Upon adoption, this guidance did not have a material impact on its unaudited condensed consolidated financial statements.

Assets or liabilities measured at fair value or a recurring basis included embedded conversion options in convertible debt and convertible preferred stock and were as follows at:

	June 30, 2023						December 31, 2022						September 30, 2023						December 31, 2022
Description	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Total derivative liabilities	$	-	$	-	$	663,682	$	-	$	-	$	116,508	$	-	$	-	$	660,580	$	-	$	-	$	116,508

ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding equity instruments.

Cash and Cash Equivalents

Cash equivalents are comprised of certain highly liquid instruments with a maturity of three months or less when purchased. The Company did not have any cash equivalents on hand at ~~June~~September 30, 2023 and December 31, 2022. The Company places its cash with high credit quality financial institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institutions, the Company evaluates, at least annually, the rating of the financial institutions in which it holds deposits. At ~~June~~September 30, 2023 and December 31, 2022, the Company did not have cash in excess of FDIC limits.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Accounts Receivable

The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current credit worthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for and payments from its customers and maintains provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. While such credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly reviewing the composition of its accounts receivable aging and evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic circumstance. While credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. As of ~~June~~September 30, 2023 and December 31, 2022, the allowance for doubtful accounts was $0 for both periods.

Inventory

Inventories consist primarily of finished goods and are stated at the lower of cost or market. Cost is determined using the weighted average method, and average cost is recomputed after each inventory purchase or sale. Inventories are written down if the estimated net realizable value is less than the recorded value, if appropriate.

Long-Lived Assets

The Company assesses the recoverability of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair 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. No impairment losses were recognized for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022.

Property and equipment

Property is carried at cost. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets, generally three to five years.

Stock-based compensation

Stock-based compensation is accounted for based on the requirements of ASC 718 - “Compensation-Stock Compensation”, which requires recognition in the financial statements of the cost of employee, non-employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Derivative Liabilities

The Company has certain financial instruments that are embedded derivatives associated with capital raises and ~~acquisition (see Note 13).~~acquisition. The Company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815-10 –- Derivative and Hedging –- Contract in Entity’s Own Equity. This accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment, or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

In July 2017, FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features. These amendments simplify the accounting for certain financial instruments with down-round features. The amendments require companies to disregard the down-round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. For public business entities, the amendments in Part I of the ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

Concentration Risk

Concentration of Revenues

For the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, no customer accounted for over 10% of total revenues.

Concentration of Purchases

The Company purchased approximately ~~20% of its finished products from one vendor during the six months ended June 30, 2023. The Company purchased approximately 32%~~37% of its finished products from two vendors (10% and ~~12%~~27%) during the ~~six~~nine months ended ~~June~~September 30, 2023. The Company purchased approximately 35% of its finished products from two vendors (15% and 20%) during the nine months ended September 30, 2022.

Concentration of Accounts Receivable

As of ~~June~~September 30, 2023, accounts receivable amounted to ~~$96,400~~$131,475 and two customers represented ~~73% (49%~~59% (43% and ~~24%~~16%) of this balance. As of December 31, 2022, total accounts receivable amounted to $119,931 and two customers represented 90% (60% and 30%) of this balance.

Recent Accounting Pronouncements

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Note 4 - Property and Equipment

Property and equipment consist of the following:

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022

Leasehold improvements	$	391,722	$	391,722	$	391,722	$	391,722
Office and computer equipment		581,352		581,352		581,352		581,352
Selling equipment		8,354		8,354		8,354		8,354
Furniture and fixtures		25,411		20,511		25,411		20,511

Total at cost		1,006,839		1,001,939		1,006,839		1,001,939
Less: Accumulated depreciation		(970,727)		(951,775)		(980,260)		(951,775)

	$	36,112	$	50,164	$	26,579	$	50,164

Depreciation expense for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022 was ~~$18,952~~$28,485 and ~~$20,642,~~$30,448, respectively. Depreciation expense for the three months ended ~~June~~September 30, 2023 and 2022 was ~~$9,171~~$9,533 and ~~$10,085,~~$9,806, respectively.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Note 5 - Net Loss per Share

Pursuant to ASC 260-10-45, basic loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of common stock issuable for stock options and stock warrants (using the treasury stock method), convertible notes and common stock issuable. These common stock equivalents may be dilutive in the future.

The potentially dilutive common stock equivalents as of ~~June~~September 30, 2023 and December 31, 2022 were excluded from the dilutive loss per share calculation as they would be antidilutive due to the net loss as follow:

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(Unaudited)				(Unaudited)
Common Stock Equivalents:
Stock Warrants		3,095,983		3,095,983		11,595,983		3,095,983
Convertible Preferred Stock		31,791,382		16,735,086		59,208,121		16,735,086
Convertible Notes		164,314,465		24,384,615		1,294,719,875		24,384,615
Total		199,201,830		44,215,684		1,365,523,979		44,215,684

Note 6 - Convertible Notes Payable

As of ~~June~~September 30, 2023 and December 31, 2022, convertible notes payable consisted of the following:

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(Unaudited)				(Unaudited)
Principal amount	$	245,873	$	79,250	$	294,422	$	79,250
Less: unamortized debt discount		(75,615)		(59,926)		(92,263)		(59,926)
Convertible notes payable, net	$	170,258	$	19,324	$	202,159	$	19,324

Boot Capital, LLC

On October 3, 2022, the Company entered into an 8% convertible note in the amount of $79,250 less legal and financing costs of $4,250 for net proceeds of $75,000 with Boot Capital LLC. The principal and accrued interest is

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

payable on or before October 3, 2023. The note may not be prepaid except under certain conditions. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of twenty-two percent (22%) per annum from the due date thereof until the same is paid. At the option of the Holder, but not before 180 days from the date of issuance, the holder may elect to convert all or part of the convertible into the Company’s common stock. The conversion price shall mean 65% multiplied by the average two lowest trading price (representing a discount rate of 35%) during the previous 15 trading day period ending on the latest complete trading day prior to the date of this note. During the first 90 to 180 days following the date of this note, the Company has the right to prepay the principal and accrued but unpaid interest due under this note together with any other amounts that the Company may owe the holder under the terms of the note, at a premium ranging from 120% to 125% as defined in the note agreement. After this initial 180-day period, the Company does not have a right to prepay such note. During the ~~six~~nine months ended ~~June~~September 30, 2023, principal of ~~$9,815~~$28,330 were converted into ~~4,775,000~~61,549,539 shares of common stock. The outstanding balance at ~~June~~September 30, 2023 and December 31, 2022 was ~~$69,435~~$50,920 and $79,250, respectively. Accrued interest at ~~June~~September 30, 2023 and December 31, 2022 was ~~$4,557~~$5,779 and $1,546, respectively.

Trillium Partners LP

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

the ~~six~~nine months ended ~~June~~September 30, 2023, the Company reclassed this from a loan to a convertible note payable upon the receipt of a secured promissory note. Accordingly, the Company entered into Secured Promissory Note (the “Secured Note”) in amount of $118,000 and original issue discount of $18,000 for net proceeds of $100,000. The Secured Note was due on February 4, 2023. Such Secured Note is secured by a security interest in the borrower’s existing and future assets, including all rights to received payments (including credit card payments) from the sale of goods or services, inventory, property and equipment, and general intangibles.

The Secured Note was issued in connection with the Advance Agreement dated October 27, 2021. On April 21, 2023, the Company, together with its majority owned subsidiaries, Aphrodite Marketing and GearBubble Tech (collectively the “Borrower”), entered into an Amendment Agreement (the “First Amendment”) with Trillium Partners L.P. to amend the Advance Agreement dated October 27, 2021 (the “Agreement”). Both parties agreed to amend the Agreement in section 10 of the Agreement including among others, a default interest rate of 22% per annum, conversion right to convert all or any part of the outstanding and unpaid amounts of the promissory notes, a provision that in no event shall the lender be entitled to convert into common stock that would result to beneficial ownership by lender and its affiliates of more than 4.99% of the outstanding shares of common stock (the “Beneficial Ownership Limitation”), and variable conversion price of 50% of the lowest trading price during the 30-trading day period prior to conversion date.

In the event that the Company fails to deliver the shares of common stock issuable upon conversion of principal or interest under of the promissory note within three business days of a notice of conversion, the Company shall incur a penalty of $2,000 per day; provided, however, that such fee shall not be due if the failure to deliver the shares is a result of a third party, such as the transfer agent.

On May 31, 2023, the Company, together with its majority owned subsidiaries, and Trillium Partners L.P. entered into a Second Amendment to the Advance Agreement whereby both parties agreed to amend under section 10(b) to increase the Beneficial Ownership Limitation from 4.99% into 9.99%.

Principal and interest shall be paid with 16 weekly payments of $7,375 shall be paid to the lender on each Friday starting in the month of July 2022; Upon the occurrence of an event of default, the principal or interest on this note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum. The Company did not pay the required payments and accordingly, has been accruing interest at 22%. During the ~~six~~nine months ended ~~June~~September 30, 2023, principal of ~~$12,043~~$31,158 were converted into ~~6,976,753~~75,648,487 shares of common stock. As of ~~June~~September 30, 2023, the principal balance is ~~$105,957~~$86,842 and accrued interest amounted to ~~$8,522~~$13,855 at ~~June~~September 30, 2023.

August 10, 2023 Securities Purchase Agreement

On August 10, 2023, the Company entered into a securities purchase agreement with Trillium Partners LP (“Trillium”), which closed on August 15, 2023, pursuant to which Trillium purchased a convertible promissory note (the “August 10, 2023 Trillium Note”) from the Company in the aggregate principal amount of $5,500, such principal and the interest thereon convertible into shares of the Company’s common stock at the option of Trillium any time after 180 days of the August 10, 2023 Trillium Note. The August 10, 2023 Trillium Note contains debt issue costs of $500. The Company intends to use the net proceeds for general working capital purposes. The maturity date is August 10, 2024.

In connection with such note, the Company issued 4,250,000 warrants to purchase common stock to such lender immediately exercisable at an initial exercise price of $0.0013 per share (subject to certain adjustments such as stock split, dividend, subsequent issuance of rights or options, subsequent convertible securities offering, consolidation or merger and pro-rata distribution) with an expiry date of August 10, 2030. The Company accounted for the 4,250,000 warrants issued with this note by using the relative fair value method. The total debt discount which is equivalent to the relative fair value of the warrants of $2,756 using a Black-Scholes model with the following assumptions: stock price at valuation date of $0.0013 based on the closing price of common stock at date of grant, exercise price of $0.0013, dividend yield of zero, expected term of 7.00, a risk-free rate of 4.17%, and expected volatility of 697%.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

J.P. Carey Limited Partners LP

August 10, 2023 Securities Purchase Agreement

On August 10, 2023, the Company entered into a securities purchase agreement with J.P. Carey Limited Partners LP (“JP Carey”), which closed on August 15, 2023, pursuant to which J.P. Carey purchased a convertible promissory note (the “August 10, 2023 JP Carey Note”) from the Company in the aggregate principal amount of $5,500, such principal and the interest thereon convertible into shares of the Company’s common stock at the option of JP Carey any time after 180 days of the August 10, 2023 JP Carey Note. The August 10, 2023 JP Carey Note contains debt issue costs of $500. The Company intends to use the net proceeds for general working capital purposes. The maturity date is August 10, 2024.

The following terms shall apply to the above August 10, 2023 Trillium Note and August 10, 2023 JP Carey Note (the “August 10, 2023 Notes”):

The August 10, 2023 Notes bear interest at a rate of 12% per annum, which interest may be paid by the Company to the lenders in shares of the Company’s common stock; but shall not be payable until the August 10, 2023 Notes become payable, whether at the maturity date or upon acceleration or by prepayment.

During the first 180 days following the date of the August 10, 2023 Notes, the Company has the right to prepay the principal and accrued but unpaid interest due under the above notes, together with any other amounts that the Company may owe the holder under the terms of the note, at a premium of 150% as defined in the note agreement. After this initial 180-day period, after the expiration of the prepayment periods set forth above, the Company may submit an optional prepayment notice to the lenders.

The conversion price for the above notes shall be equal to a 50% discount of the market price which means the lowest 10 trading prices of the Common Stock immediately prior to the delivery of a Notice of Conversion. Notwithstanding the foregoing, the lenders shall be restricted from effecting a conversion if such conversion, along with other shares of the Company’s common stock beneficially owned by lenders and its affiliates, exceeds 9.99% of the outstanding shares of the Company’s common stock. Notwithstanding the foregoing, such conversion price and lookback periods are subject to adjustment in favor of the Investor in the event the Company issues securities to another party with more favorable conversion terms (“Most Favored Nation”). During the period where any monies are owed to the lender pursuant to the August 10, 2023 Notes, if the Company engages in any future financing transactions with a third party investor, the Company will provide the lender with written notice (the “MFN Notice”) thereof promptly but in no event less than 10 days prior to closing any financing transactions except for exempt issuance as defined in related the note agreements.

The above notes contain certain events of default, upon which principal and accrued interest will become immediately due and payable. In addition, upon an event of default, interest on the outstanding principal shall accrue at a default interest rate of 22% per annum, or if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. Further, certain events of default may trigger penalty and liquidated damage provisions.

Upon certain events of default, the above the August 10, 2023 Notes will become immediately due and payable and the Company must pay the lenders 200% of the then-outstanding principal amount of the above August 10, 2023 Notes, plus any interest accrued upon such event of default or prior events of default (the “Default Amount”). Further,

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

upon any event of default relating to the failure to issue shares of common stock upon the conversion of such notes, such notes become immediately due and payable in an amount equal to twice the Default Amount.

The total principal amount outstanding under the above Trillium financing agreement was $5,500 and accrued interest of $92 as of September 30, 2023. The total principal amount outstanding under the above JP Carey financing agreement was $5,500 and accrued interest of $92 as of September 30, 2023.

1800 Diagonal Lending LLC

On April 24, 2023, the Company entered into an 8% convertible note in the amount of $70,481 less legal and financing costs of $5,481 for net proceeds of $65,000 with 1800 Diagonal Lending, LLC. The principal and accrued interest are payable on or before April 24, 2024. Any amount of principal or interest on this note which was not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid. At the option of the Holder, but not before 180 days from the date of issuance, the holder may elect to convert all or part of the convertible into the Company’s common stock. The conversion price was 65% multiplied by the average three lowest trading price (representing a discount rate of 35%) during the previous 15 trading day trading day period ending on the latest complete trading day prior to the date of this note. The outstanding principal and accrued interest balance at ~~June~~September 30, 2023 was $70,481 and $1,035, respectively.

During the first 90 to 180 days following the date of these notes, the Company had the right to prepay the principal and accrued but unpaid interest due under the above note together with any other amounts that the Company may owe the holder under the terms of the note, at a premium ranging from 115% to 120% as defined in the note agreement. After this initial 180-day period, the Company does not have a right to prepay such notes.

On April 24, 2023, the Company entered into a 13% promissory note in the amount of $75,180 less original issue discount of $8,055 and legal and financing costs of $2,125 for net proceeds of $65,000 with 1800 Diagonal Lending, LLC. The Company failed to make the first installment payment due in June 2023 which was considered an event of default and accordingly such promissory note became a convertible note. Consequently, during the nine months ended September 30, 2023, the Company reclassed the remaining principal balance of $75,180 and the related unamortized debt discount of $8,311 from notes payable to a convertible notes payable (see Note 9). The outstanding principal and accrued interest balance at September 30, 2023 was $75,180 and $5,273, respectively.

Amortization of debt discounts and financing cost

For the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, amortization of debt discounts and financing cost related to all the convertible notes above amounted to ~~$172,792~~$240,455 and ~~$337,701,~~$396,365, respectively, and for the three months ended ~~June~~September 30, 2023 and 2022, amortization of debt discounts and financing cost related to all the convertible notes above amounted to ~~$153,251~~$67,663 and ~~$80,936,~~$68,687, respectively, which has been amortized and included in amortization of debt discount and deferred financing cost on the accompanying unaudited condensed consolidated statements of operations.

Note 7 - Derivative Liability

The Company applies the provisions of ASC 815-40, Derivatives and Hedging - Contracts in an Entity’s Own Stock, under which convertible instruments that contain terms and provisions which cause the embedded conversion options to be accounted for as derivative liabilities. As a result, embedded conversion options in certain convertible notes and convertible preferred stock are recorded as a liability and are revalued at fair value at each reporting date. As of ~~June~~September 30, 2023 and December 31, 2022, total derivative liabilities amounted ~~$663,682~~$660,580 (consist of derivative liability from convertible debt of ~~$591,251~~$639,154 and derivative liability related to acquisition of Aphrodite’s Marketing ~~$72,431)~~$21,426) and $116,508 (consist of derivative liability from convertible debt of $108,594 and derivative liability related to acquisition of Aphrodite’s Marketing $7,914), respectively.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

The following is a roll forward for the ~~six~~nine months ended ~~June~~September 30, 2023 and for the year ended December 31, 2022 of the fair value liability of price adjustable derivative instruments:

Fair Value of
Liability for
Derivative
Instruments

Balance at December 31, 2021

$
978,232
Initial valuation of derivative liabilities included in debt discount

201,250
Initial valuation of derivative liabilities related to issuance of Series B and C Preferred Stock

37,706
Initial valuation of derivative liabilities included in derivative expense

(405,700)
Reclassification of derivative liabilities to gain from extinguishment of debt

(67,284)
Change in fair value of derivative liabilities

(627,696)
Balance at December 31, 2022

$
116,508

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

	Fair Value of Liability for Derivative Instruments		Fair Value of Liability for Derivative Instruments

Balance at December 31, 2021			$	978,232
Initial valuation of derivative liabilities included in debt discount				201,250
Initial valuation of derivative liabilities related to issuance of Series B and C Preferred Stock				37,706
Initial valuation of derivative liabilities included in derivative expense				(405,700)
Reclassification of derivative liabilities to gain from extinguishment of debt				(67,284)
Change in fair value of derivative liabilities				(627,696)
Balance at December 31, 2022	$	116,508	$	116,508

Initial valuation of derivative liabilities included in debt discount		183,000		252,488
Initial valuation of derivative liabilities included in derivative expense		351,712		525,902
Reclassification of derivative liabilities to gain from extinguishment of debt		(40,304)		(115,232)
Change in fair value of derivative liabilities		52,766		(119,086)
Balance at June 30, 2023	$	663,682
Balance at September 30, 2023			$	660,580

The Company calculates the estimated fair values of the liabilities for derivative instruments using the Black-Scholes pricing model. The closing price of the Company’s common stock at ~~June~~September 30, 2023 and December 31, 2022 was ~~$0.0043 for both periods.~~$0.0006 and $0.005, respectively. The volatility, expected remaining term, and risk-free interest rates used to estimate the fair value of derivative liabilities at ~~June~~September 30, 2023 are indicated in the table that follows.

The expected term is equal to the remaining term of the convertible instruments and the risk-free rate is based upon rates for treasury securities with the same term.

	Initial Valuations (on new derivative instruments entered into during the ~~six~~three months ended ~~June~~September 30, 2023)		~~June~~September 30, 2023
Volatility		~~662%~~692% to 697%		~~628% to 675%~~697%
Expected Remaining Term (in years)		~~0.15~~0.82 to 1.00		~~0.08~~0.01 to ~~1.00~~0.86
Risk Free Interest Rate		~~4.76~~5.33 to ~~4.98%~~5.37%		~~4.74 to 5.55%~~5.46%
Expected dividend yield		None		None

Note 8 - Loans and Advances Payable

Loans and advances payable consisted of the following:

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(Unaudited)				(Unaudited)
Principal amount of loans and advances	$	880,722	$	839,613	$	880,822	$	839,613
Accrued interest		498,845		232,476		535,022		232,476
Loans and advances payable	$	1,379,567	$	1,072,089	$	1,415,844	$	1,072,089

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Trillium Partners LP

On June 16, 2022, the Company received proceeds related to a loan with Trillium Partners LP in the amount of $100,000. The loan and accrued interest were due on demand. Interest accrued at the rate of 3% per annum. As of December 31, 2022, the principal balance was $100,000. Accrued interest amounted to $4,340 at December 31, 2022. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company reclassed such loan to convertible note payable upon the receipt of a secured promissory note and an amendment to an advance agreement (see Note 7)6).

Jonathan Foltz

The Company’s majority owned subsidiary, Aphrodite’s Marketing, has a loan with Jonathan Foltz, the President and CEO of Digital Age Business. On February 10, 2021, upon the acquisition of Aphrodite’s Marketing, the Company assumed an outstanding balance of $75,500 with Jonathan Foltz. During the year ended December 31, 2022, the Company received $90,150 and repaid back $25,239 related to this loan. Additionally, during the year ended

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

December 31, 2022, Nationwide has assumed $65,513 of this loan. As of December 31, 2022, the outstanding balance is $81,534. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company has received ~~$67,916~~$68,016 and repaid back $22,244 related to this loan. As of ~~June~~September 30, 2023 and December 31, 2022, the outstanding balance is ~~$127,206~~$127,306 and $81,534, respectively.

Nationwide Transport Service, LLC (“Nationwide”)

Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, has loan agreements with Nationwide dated in October 2020 and November 2020. Nationwide is owned by the father of Jonathan Foltz. On February 10, 2021, upon the acquisition of Aphrodite’s Marketing, the Company assumed an outstanding balance of $545,720 with Nationwide. Aphrodite’s Marketing did not make the required installment payments pursuant to the loan agreements from December 2020 to February 2021 and as such these loans are currently in default. Interest on defaulted amount ranges from 1% to 3% per month. During the year ended December 31, 2022, the Company repaid back $150,000 related to this loan. Additionally, during the year ended December 31, 2022, Nationwide assumed a total of $106,000 of loans related to Digital Age Business and Jonathan Foltz. As of December 31, 2022, the outstanding balance is $608,500 including accrued interest of $77,718. As of ~~June~~September 30, 2023, the outstanding balance is ~~$647,875~~$667,562 including accrued interest of ~~$117,093.~~$136,781.

Amazon Capital Services, Inc.

In July 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a loan agreement with Amazon Capital Services, Inc. (“Amazon”) for a loan amount of $64,000. The loan bears an annual interest rate of 12% and has a loan term of 6 months from date of the loan. During the year ended December 31, 2022, the Company repaid back $55,531 related to this loan. As of December 31, 2022, the outstanding balance is $11,001 including accrued interest of $2,532. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company has repaid back $11,085 related to this loan. As of ~~June~~September 30, 2023, the outstanding balance is $0.

Bluevine Capital, Inc.

In August 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a line of credit agreement with Bluevine Capital, Inc. (“Bluevine”) for up to a loan amount of $200,000. The loan bears weekly interest rate of 0.54% and an upfront fee of 1.6% which were deducted from the loan amount. The loans are repaid in 26 weekly installments from the date of the loan. During the year ended December 31, 2022, the Company has drawn a total loan of $200,000 and repaid back $112,412. As of December 31, 2022, the outstanding balance is $87,588. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company has drawn a total loan of $75,000 and repaid back $93,606. As of ~~June~~September 30, 2023, the outstanding balance is $85,631.

Square Advance

In September 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a merchant cash advance agreement (the “First Advance”) with Square Advance. Under the agreement, the Company sold an aggregate

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

of $174,875 in future receivables for a purchase amount of $125,000. The aggregate principal amount is payable in weekly instalments totaling $7,286 until such time that the obligation is fully satisfied for approximately 6 months. During the year ended December 31, 2022, the Company received $118,750 (net of debt cost fee of $6,250 which was amortized immediately to interest expense) and repaid back $97,638 related to this loan advance. This loan is guaranteed by the CEO of the Company and Jonathan Foltz. During the year ended December 31, 2022, interest expense incurred related to this advance amounted to $31,171.

In January 2023, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a merchant cash advance agreement with Square Advance. Under the agreement, the Company sold an aggregate of $245,000 in future receivables for a purchase amount of $175,000. The aggregate principal amount is payable in daily instalments totaling $1,884.62 until such time that the obligation is fully satisfied for approximately 130 days. The Company has received $168,000 (net of debt cost fee of $7,000 which was amortized immediately to interest expense) of which $59,749 was used to pay the remaining balance of the First Advance. This loan is guaranteed by the CEO of the Company and Jonathan Foltz.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

During the ~~six~~nine months ended ~~June~~September 30, 2023, interest expense incurred related to these advances amounted to ~~$90,902~~$95,703 and repaid back $29,000. As of ~~June~~September 30, 2023 and December 31, 2022, the outstanding balance is ~~$152,472~~$157,274 and $58,533, respectively.

EAdvance Services

In November 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a purchase and sale of future receipt agreement with EAdvance Services. Under the agreement, the Company sold an aggregate of $213,900 in future receipt or receivables for a purchase amount of $155,000. The aggregate principal amount is payable in daily instalments of $1,782 until such time that the obligation is fully satisfied for approximately 4 months. During the year ended December 31, 2022, the Company received $150,350 (net of debt cost fee of $4,650 which was amortized immediately to interest expense) and repaid back $43,659 related to this loan. This loan is guaranteed by the CEO of the Company. During the year ended December 31, 2022, interest expense incurred related to this advance amounted to $13,592. As of December 31, 2022, the outstanding balance is $124,933.

During the ~~six~~nine months ended ~~June~~September 30, 2023, repaid back $100,998 related to this loan. During the ~~six~~nine months ended ~~June~~September 30, 2023, interest expense incurred related to this advance amounted to $45,308. As of ~~June~~September 30, 2023, the outstanding balance is $69,243.

Parkside Funding Group LLC

In February 2023, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a purchase and sale of future receipt agreement with Parkside Funding Group LLC. Under the agreement, the Company sold an aggregate of $217,500 in future receipt or receivables for a purchase amount of $150,000. The aggregate principal amount is payable in daily instalments of $1,977 until such time that the obligation is fully satisfied for approximately 4 months. This loan is guaranteed by the CEO of the Company and Jonathan Foltz. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company received $142,500 (net of debt cost fee of $7,500 which was amortized immediately to interest expense) and repaid back $68,046 related to this loan. During the ~~six~~nine months ended ~~June~~September 30, 2023, interest expense incurred related to this loan amounted to ~~$57,116.~~$67,501. As of ~~June~~September 30, 2023, the outstanding balance is ~~$139,070.~~$149,455.

Marcus by Goldman Sachs

In February 2023, the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a line of credit agreement with Marcus by Goldman Sachs (“Marcus”) for up to a loan amount of $125,000. The loan bears an annual interest rate of 9.99%. The amount due is 2% of the principal balance plus any fees and amounts that weren’t paid during the prior statement periods. During the repayment period, the amount due is the total outstanding balance at the end of the draw period divided into 26 equal payments that, if made in-full and on-time, bring the balance to zero over the next year. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company has drawn a total loan of $136,049

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

and repaid back $16,517. During the ~~six~~nine months ended ~~June~~September 30, 2023, interest expense incurred related to this loan amounted to ~~$4,077.~~$5,380. As of ~~June~~September 30, 2023, the outstanding balance is ~~$123,609.~~$124,912.

Shopify

The Company’s majority owned subsidiary, Aphrodite’s Marketing, has a merchant loan agreement with Shopify, an e-commerce platform provider with a daily remittance rate of 17% for a loan amount of $36,160. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company has received $32,000 (net of debt cost of $4,160 which was amortized immediately to interest expense) and repaid back $1,698 related to this merchant loan agreement. The loan or advance is non-interest bearing, due on demand and are secured by all of the assets of Aphrodite’s Marketing. As of ~~June~~September 30, 2023, the outstanding balance is $34,462.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Note 9 - Notes Payable

Notes payable is summarized below:

	June 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
	(Unaudited)				(Unaudited)
Principal amount	$	1,037,180	$	962,000	$	962,000	$	962,000
Less: current portion		(768,717)		(702,504)		(701,862)		(702,504)
Less: unamortized debt discount		(8,310)		-
Notes payable - long term portion	$	260,153	$	259,496	$	260,138	$	259,496

Minimum principal payments under notes payable are as follows:

Year ended December 31, 2023 - remainder	$	786,192	$	707,652
Year ended December 31, 2024		15,492		15,492
Year ended December 31, 2025		15,492		15,492
Year ended December 31, 2026		15,492		15,492
Year ended December 31, 2027		15,492		15,492
Year ended December 31, 2028 and thereafter		189,020		192,380
Total principal payments	$	1,037,180	$	962,000

On July 6, 2020, entered into a Loan Authorization and Agreement (“SBA Loan Agreement”) with the Small Business Association (“SBA”) in the amount of $114,800 under the SBA’s Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic. Pursuant to the SBA Loan Agreement, the Company received an advance of $114,800, to be used for working capital purposes only. Pursuant to the SBA Loan Agreement, the Company executed; (i) a note for the benefit of the SBA (“SBA Note”), which contains customary events of default; and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of the Company, which also contains customary events of default. Installment payments, including principal and interest, were due monthly beginning July 6, 2021 but were extended by the SBA to July 6, 2022 in the amount of $560 each month for a term of thirty (30) years. In March 2022, SBA extended the payment due date from 24 months to 30 months from the date of the note. Interest accrues on this note at the rate of 3.75%. This note is collateralized by the assets of the Company. The outstanding balances at December 31, 2022 was $114,800 with accrued interest of $11,195. During the ~~six~~nine months ended ~~June~~September 30, 2023, a total of ~~$3,360~~$5,040 of installment payments were ~~paid.~~paid and applied against accrued interest. The outstanding balances at ~~June~~September 30, 2023 was $114,800 with accrued interest of ~~$9,921.~~$9,409.

Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a Loan Authorization and Agreement with the SBA, under the SBA’s Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic. On February 10, 2021, upon the acquisition of Aphrodite’s Marketing, the Company assumed an outstanding balance of $150,000 related to this SBA Loan. Pursuant to the SBA Loan Agreement, the Company received an advance of $150,000, to be used for working capital purposes only. Pursuant to the SBA Loan Agreement, the Company executed; (i) a note for the benefit of the SBA, which contains customary events of default; and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

the Company, which also contains customary events of default. The SBA Note bears an interest rate of 3.75% per annum which accrues from the date of the advance. Installment payments, including principal and interest, were due monthly beginning June 24, 2021 but was extended by the SBA to June 24, 2022 in the amount of $731. In March 2022, SBA extended the payment due date from 24 months to 30 months from the date of the note. The outstanding balance at December 31, 2022 was $150,000 with accrued interest of $14,627. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company did not pay the installment payments. The outstanding balance at ~~June~~September 30, 2023 was $150,000 with accrued interest of ~~$17,388.~~$18,962.

On July 1, 2021, the Company issued a promissory note in the amount of $1,162,000 in connection with the Merger Agreement with GearBubble and is payable to Mr. Donald Wilson who is one of the majority owners of the 49% of GearBubble Tech. The $1,162,000 promissory note is to be paid in 15 equal installments. This note is non-interest bearing and due on demand. Between October 2021 and November 2021, the Company paid a total of $309,867

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

towards this promissory note. During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company has repaid back $154,933 related to promissory note. As of ~~June~~September 30, 2023 and December 31, 2022, the outstanding balance is $697,200 for both periods. The Company negotiated with Mr. Donald Wilson to defer the installment payments in the future.

On April 24, 2023, the Company entered into a 13% promissory note in the amount of $75,180 less original issue discount of $8,055 and legal and financing costs of $2,125 for net proceeds of $65,000 with 1800 Diagonal Lending, LLC. The principal and accrued interest is payable on or before April 24, 2024. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid. Accrued, unpaid Interest and outstanding principal, subject to adjustment, shall be paid in 9 payments each in the amount of $9,550 (a total payback to the Holder of $85,953). The first payment shall be due June 15, 2023 with 8 subsequent payments each month thereafter. The Company shall have a five (5) day grace period with respect to each payment. The Company has right to accelerate payments or prepay in full at any time with no prepayment penalty. At any time following an Event of Default, the Holder shall have the right, to convert all or any part of the outstanding and unpaid amount of this Note into shares of Common Stock. The conversion price shall mean 60% multiplied by the lowest Trading Price for the Common Stock during the 20 Trading Days prior to the Conversion Date (representing a discount rate of 40%). Upon the occurrence of any event of defaults, the note shall be immediately due and payable in an amount equal to 150% default percentage multiplied by the sum of the outstanding principal balance plus accrued interest and default interest. Any failure to deliver the shares upon conversion following a default will result in a unilateral increase of the default percentage to 200%. The Company failed to make the first installment payment due in June 2023 which was considered an event of default and accordingly such promissory note became a convertible note. Consequently, during the nine months ended September 30, 2023, the Company reclassed the remaining principal balance of $75,180 and the related unamortized debt discount of $8,311 from note payable to a convertible note payable (see Note 6).

For the ~~six~~nine months ended ~~June~~September 30, 2023, amortization of debt discounts related to this promissory note amounted to $1,869 which was amortized and included in amortization of debt discount and deferred financing cost on the accompanying consolidated statements of operations. During the six months ended June 30, 2023, the Company has not paid any of the required installment payments. The outstanding principal balance and accrued interest at June 30, 2023 was $75,180 and $1,104, respectively.

Note 10 - Related Party Transactions

Advances from Chief Executive Officer and Accrued Interest

The Company receives periodic advances from the Company’s Chief Executive Officer (“CEO”) based upon the Company’s cash flow needs. At ~~June~~September 30, 2023 and December 31, 2022, ~~$260,861~~$357,571 and $142,854 was due to such officer, respectively. Interest expense was accrued at an interest rate of 5% at ~~June~~September 30, 2023. Interest expense incurred was $2,845 for the year ended December 31, 2022. Interest expense incurred was ~~$14,058~~$21,934 for the ~~six~~nine months ended ~~June~~September 30, 2023. During the year ended December 31, 2022, the CEO provided advances to the Company for working capital purposes of $190,000 and the Company repaid $192,493 of these advances. During the ~~six~~nine months ended ~~June~~September 30, 2023, the CEO provided advances to the Company for working capital purposes of ~~$310,953~~$440,827 and the Company repaid ~~$207,004~~$248,044 of these advances.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Effective February 28, 2010, the Company entered into an employment agreement with the CEO. The agreement, which is for a five-year term, provides for an initial base salary of $175,000 per year with a 3% annual increase thereafter (the “Base Salary”). The CEO is also entitled to certain bonuses based on net profits before taxes and other customary benefits, as defined in the agreement. In addition, since it is understood that the Company is employing the CEO during a time of economic decline throughout the U.S. and at times and from time to time, the Company may not be in a position to pay the full amount of Base Salary owed the CEO it is understood and agreed to by the Board, that as long as the Company is unable to pay the CEO the full amount of his Base Salary that the Board shall issue to him, from time to time, an amount of shares that will allow him to remain in possession of fifty-one percent (51%) of the Company’s then outstanding shares of common stock. Such issuances shall be made to the CEO at any time when his total share holdings are reduced to an amount less than fifty-one percent (51%) as a result of the issuance of shares of common stock made on behalf of the Company. Effective September 1, 2011, the Company authorized and issued 51 shares of Series A Preferred Stock to the Company’s CEO. Additionally, during the year ended December 31, 2021, the Company authorized and issued an additional 24 shares of Series A Preferred Stock to the Company’s CEO in connection with the amended and restated certificate of designation for the Company’s Series A Preferred Stock.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

In April 2022, the Company accrued bonus compensation of $100,000 to the CEO. During the year ended December 31, 2022, the Company repaid back $126,523 of accrued compensation to CEO. ~~During the six months ended~~In June ~~30,~~ 2023, the Company issued 50,000,000 shares of common stock for accrued compensation - CEO ~~of $100,000.~~and such 50,000,000 shares were subsequently returned to the Company by the CEO in September 2023. As of ~~June~~September 30, 2023 and December 31, 2022, accrued compensation - CEO amounted ~~$308,572~~$467,879 and $319,640, respectively, as reflected in the unaudited condensed consolidated balance sheets.

On July 1, 2021, the Company entered into an Amended and Restated Executive Employment Agreement (“Amended Employment Agreement”) with the CEO of the Company, Berge Abajian (the “Executive”). The term of the Amended Employment Agreement shall be for 5 years and shall be automatically extended for successive periods of 1 year unless terminated by the Company or the Executive. The Executive shall receive a base salary of $250,000 per year and such base salary shall automatically increase in a rate of 3% per annum for each consecutive year after 2021 or at such rates as may be approved by the board of directors of the Company. Upon written request of the Executive, the Company shall pay all or a portion of the base salary owed to Executive in the form of i) a convertible promissory note, or ii) the Company’s common stock or if available, S-8 common stock. Additionally, the Executive is eligible to receive a quarterly bonus at the discretion of the board of directors of the Company. Additionally, the Executive shall be eligible to participate in the Company’s 2021 Stock Incentive Plan. In July 2021, under the terms of the ESOP, the Board of Directors of the Company approved the future issuance of 1,000,000 post-split shares (500,000,000 pre-split shares) to the Company’s CEO subject to the Company increasing its authorized shares to 6,000,000,000 shares and subject to the effectiveness of an S-8 Registration Statement covering these shares which was filed with the Securities and Exchange Commission (“SEC”) on September 21, 2022 (see Note 12).

Loans Payable

The Company’s majority owned subsidiary, Aphrodite’s Marketing, has a loan with Jonathan Foltz, the President and CEO of Digital Age Business. Jonathan Foltz is one of the majority owners of the 49% in Acquisition Sub, Aphrodite’s ~~Marketing.~~Marketing (see Note 8). As of ~~June~~September 30, 2023 and December 31, 2022, the outstanding balance is ~~$127,206~~$127,306 and $81,534, respectively.

Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, has loan agreements with Nationwide dated in October 2020 and November 2020. Nationwide is owned by the father of Jonathan Foltz (see Note 8). As of December 31, 2022, the outstanding balance is $608,500 including accrued interest of $77,718. As of ~~June~~September 30, 2023, the outstanding balance is ~~$647,875~~$667,562 including accrued interest of ~~$117,093.~~$136,781.

Note 11 - Commitments and Contingencies

Litigation

The Company is currently not involved in any litigation that we believe could have a material adverse effect on the Company’s financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of the Company or any of the Company’s subsidiaries, threatened against or affecting the Company, the Company’s common stock, any of the Company’s subsidiaries or of the Company’s officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Operating Lease Agreements

The Company leases retail space at two different locations. The term of the first lease is for a ten-year period from July 2014 to April 2024 starting with a monthly base rent of $1,200. The base rent is subject to an annual increase as defined in the lease agreement. In addition to the monthly base rent, the Company is charged separately for common area maintenance which is considered a non-lease component. The second lease has a contingent rental based on 10% of sales. Contingent rentals are not included in operating lease liabilities. The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used incremental borrowing rate of 10% as of January 1, 2019 for

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

operating leases that commenced prior to that date. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings.

Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into an approximate three-year lease agreement on October 1, 2019, for its office facilities starting with a monthly base rent of $6,582. The base rent is subject to an annual increase as defined in the lease agreement. The Company recorded right-of-use assets and operating lease liabilities of $122,946 related to this lease agreement. The Company used incremental borrowing rate of 8% during year 2021. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. The Company did not renew this lease agreement in October 2022.

In March 2023, the Company leases retail space at their ~~3rd~~3rd location. The term of the first lease is for a five-year period from March 2023 to February 2028 starting with a monthly base rent of $1,900. The base rent is subject to an annual increase as defined in the lease agreement. In addition to the monthly base rent, the Company is charged separately for common area maintenance which is considered a non-lease component. The Company recorded right-of-use assets and operating lease liabilities of $89,830 related to this lease agreement. The Company used an incremental borrowing rate of 8% during the ~~six~~nine months ended ~~June~~September 30, 2023. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings.

The following table reconciles the undiscounted future minimum lease payments (displayed by year in aggregate) under non-cancelable operating leases with terms more than one year to the total operating lease liabilities on the unaudited consolidated balance sheet as of ~~June~~September 30, 2023:

Year 2023 - remainder	$	28,050	$	17,355
Year 2024		22,800		22,800
Year 2025		23,370		23,370
Year 2026		23,484		23,484
Year 2027		20,841		20,841
Year 2028		4,032		4,032
Total minimum lease payments		122,577		111,882
Less amounts representing interest		(18,145)		(16,067)
Present value of net minimum lease payments		104,432		95,815
Less current portion		(32,325)		(28,020)
Long-term capital lease obligation	$	72,107	$	67,795

Amended Employment Agreement

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

On July 1, 2021, the Company entered into an Amended and Restated Executive Employment Agreement with the CEO of the Company, Berge Abajian. The term of the Amended Employment Agreement shall be for 5 years and shall be automatically extended for successive periods of 1 year unless terminated by the Company or the Executive. The Executive shall receive a base salary of $250,000 per year and such base salary shall automatically increase in a rate of 3% per annum for each consecutive year after 2021 or at such rates as may be approved by the board of directors of the Company. Upon written request of the Executive, the Company shall pay all or a portion of the base salary owed to Executive in the form of i) a convertible promissory note, or ii) the Company’s common stock or if available, S-8 common stock. Additionally, the Executive is eligible to receive a quarterly bonus at the discretion of the board of directors of the Company. Additionally, the Executive shall be eligible to participate in the Company’s 2021 Stock Incentive Plan. In July 2021, under the terms of the ESOP, the Board of Directors of the Company approved the future issuance of 1,000,000 post-split shares (500,000,000 pre-split shares) to the Company’s CEO subject to the Company increasing its authorized shares to 6,000,000,000 shares and subject to the effectiveness of an S-8 Registration Statement covering these shares which was filed with the SEC on September 21, 2022 (see Note 12).

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Note 12 - Stockholder’s Equity (Deficit)

Employee Stock Ownership Plan

On July 9, 2021, the Board of Directors of the Company adopted the Bergio International, Inc. 2021 Stock Incentive Plan (the “ESOP”), under which the Company may award shares of the Company’s Common Stock to employees of the Company and/or its Subsidiaries. The terms of the ESOP allow the Company’s Board of Directors discretion to award the Company’s Common Stock, in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, and performance award shares, to such employees, upon meeting the criteria set forth therein, from time to time. Subject to adjustments as provided in the plan, the shares of common stock that may be issued with respect to awards granted under the plan shall not exceed an aggregate of 1,000,000,000 shares of common stock. The Company shall reserve such number of shares for awards under the plan, subject to adjustments as provided in the plan. The maximum number of shares of common stock under the plan that may be issued as incentive stock options shall be 100,000,000 shares.

On July 9, 2021, and under the terms of the ESOP, the Company’s Board of Directors approved the future issuance of 1,000,000 post-split shares (500,000,000 pre-split shares) of the Company’s Common Stock to the Company’s CEO, Berge Abajian, subject to the Company increasing its total authorized shares of common stock to 6,000,000,000 which was increased in July 2021 and subject to the effectiveness of an S-8 Registration Statement covering these shares with the SEC. As of December 31, 2021, the Company did not meet the prerequisite related to the effectiveness of an S-8 Registration Statement. As of September 30, 2022, the Company met the prerequisite related to the effectiveness of an S-8 Registration Statement. The 1,000,000 post-split shares (500,000,000 pre-split shares) of common stock have not been issued to the CEO and have been recorded as common stock issuable as of ~~June~~September 30, 2023 and December 31, 2022.

Preferred Stock

The Company has authorized the issuance of 10,000,000 shares of preferred stock. The Company’s board of directors is authorized, at any time, and from time to time, to provide for the issuance of shares of preferred stock in one or more series, and to determine the designations, preferences, limitations and relative or other rights of the preferred stock or any series thereof.

Certificate of Designation of Series A Preferred Stock

In September 2011, the Company filed a Certificate of Designation for Series A Preferred Stock with the Wyoming Secretary of State, and designated 51 shares of preferred stock as Series A Preferred Stock. In February 2021, the Company filed an amended and restated certificate of designation for the Company’s Series A Preferred Stock increasing the number of shares to 75 shares.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Designation. The Company had designated 51 shares which was amended and increased from 51 to 75 shares of preferred stock as Series A Preferred Stock. Each share of Series A Preferred Stock has a par value of $0.001 per share and a stated value of $0.001.

Dividends. There will be no dividends due or payable on the Series A Preferred Stock. Any future terms with respect to dividends shall be determined by the board of directors of the Company.

Liquidation. Upon any liquidation, the holders of Series A Preferred Stock are entitled to receive net assets on a pro rata basis. Each holder of Series A Preferred Stock is entitled to receive ratably any dividends declared by the board of directors of the Company.

Voting Rights. Each one (1) share of the Series A Preferred Stock shall have voting rights equal to One Percent (1%) of the issued and outstanding shares of the Corporation’s Common Stock on the date of any such vote, such that the Holder of all Seventy-Five (75) shares of Series A Preferred Stock, shall always have voting rights equal to Seventy Five Percent (75%) of the issued and outstanding shares of the Company’s Common Stock.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Conversion. The Series A Preferred stock in non-convertible.

As of ~~June~~September 30, 2023 and December 31, 2022, there were 75 shares of Series A Preferred Stock issued and outstanding. The Company’s CEO owns 75 shares of shares of the Series A Preferred Stock.

Certificate of Designation of Series B 2% Convertible Preferred Stock

On February 10, 2021, the Company filed a Certificate of Designation for Series B Convertible Preferred Stock (the “Certificate of Designations”) with the Wyoming Secretary of State, designating 4,900 shares of preferred stock as Series B Convertible Preferred Stock.

Designation. The Company had designated 49 shares which was amended and increased from 49 to 4,900 shares of preferred stock as Series B Convertible Preferred Stock. Each share of Series B Convertible Preferred Stock has a par value of $0.00001 per share and a stated value of $100.

Dividends. Holders of Series B Preferred Stock shall be entitled to receive, when and as declared by the Board of Directors out of funds legally available therefor, and the Company shall accrue, quarterly in arrears on ~~June 30,~~March 31, June 30, September 30, and December 31 of each year, commencing on the Issuance Date, cumulative dividends on the Series B Preferred Stock at the rate per share (as a percentage of the Stated Value per share) equal to two percent (2%) per annum on the Stated Value., payable in additional shares of Series B Preferred Stock. So long as any shares of Series B Preferred Stock remain outstanding, neither the Company nor any subsidiary thereof shall, without the consent of the Holders of eighty percent (80%) of the shares of Series B Preferred Stock then outstanding (the “Requisite Holders), redeem, repurchase or otherwise acquire directly or indirectly any Junior Securities (as defined in Section 7), nor shall the Company directly or indirectly pay or declare any dividend or make any distribution upon, nor shall any distribution be made in respect of, any Junior Securities, nor shall any monies be set aside for or applied to the purchase or redemption (through a sinking fund or otherwise) of any Junior Securities.

Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary or a Sale (as defined below) (a “Liquidation”), the holders of the Series B Preferred Stock shall be entitled to receive out of the assets of the Company, whether such assets are capital or surplus, for each share of Series B Preferred Stock an amount equal to the Stated Value plus all accrued but unpaid dividends per share, whether declared or not, and all other amounts in respect thereof then due and payable prior to any distribution or payment shall be made to the holders of any Junior Securities, and if the assets of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the holders of Series B Preferred Stock shall be distributed among the holders of Series B Preferred Stock ratably in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Voting Rights. Each holder of the Series B Preferred Stock shall have the right to vote on any matter that may from time to time be submitted to the Company’s shareholders for a vote, on an as-converted basis, either by written consent or by proxy.

Conversion at Option of Holder. Each share of Series B Preferred Stock shall be convertible into 0.01% of the total issued and outstanding shares of the Company’s Common Stock, (such that all 4,900 authorized shares of Series B Preferred Stock, if issued and outstanding, would be convertible in the aggregate into 49% of the total issued and outstanding shares of the Company’s Common Stock) (as determined at the earlier of (i) the date of Conversion of the Series B Preferred Stock; and (ii) eighteen (18) months following February 8, 2021) (“Conversion Ratio”), at the option of a Holder, at any time and from time to time, from and after the issuance of the Series B Preferred Stock.

As of ~~June~~September 30, 2023 and December 31, 2022, there were 3,000 shares of Series B Convertible Preferred Stock issued and outstanding.

Certificate of Designation of Series C 2% Convertible Preferred Stock

On February 10, 2021, the Company filed a Certificate of Designation for Series C Convertible Preferred Stock with the Wyoming Secretary of State, which designated 5 shares of preferred stock as Series C Convertible Preferred Stock.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

In April 2022, the Company increased the designation to 5,000,000 authorized shares upon filing an Amended and Restated Certificate of Designation, Preference and Rights of the Series C Convertible Preferred.

Designation. The Company has designated 5 shares of preferred stock as Series C Convertible Preferred Stock. Each share of Series C Convertible Preferred Stock has a par value of $0.00001 per share and a stated value of $100.

Dividends. Holders of Series C Preferred Stock shall be entitled to receive, when and as declared by the Board of Directors out of funds legally available therefor, and the Company shall accrue, quarterly in arrears on ~~June 30,~~March 31, June 30, September 30, and December 31 of each year, commencing on the Issuance Date, cumulative dividends on the Series C Preferred Stock at the rate per share (as a percentage of the Stated Value per share) equal to two percent (2%) per annum on the Stated Value., payable in additional shares of Series C Preferred Stock. So long as any shares of Series C Preferred Stock remain outstanding, neither the Company nor any subsidiary thereof shall, without the consent of the Holders of eighty percent (80%) of the shares of Series C Preferred Stock then outstanding, redeem, repurchase or otherwise acquire directly or indirectly any Junior Securities, nor shall the Company directly or indirectly pay or declare any dividend or make any distribution upon, nor shall any distribution be made in respect of, any Junior Securities, nor shall any monies be set aside for or applied to the purchase or redemption of any Junior Securities.

Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary or a Sale (as defined below) (a “Liquidation”), the holders of the Series C Preferred Stock shall be entitled to receive out of the assets of the Company, whether such assets are capital or surplus, for each share of Series C Preferred Stock an amount equal to the Stated Value plus all accrued but unpaid dividends per share, whether declared or not, and all other amounts in respect thereof then due and payable prior to any distribution or payment shall be made to the holders of any Junior Securities, and if the assets of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the holders of Series C Preferred Stock shall be distributed among the holders of Series C Preferred Stock ratably in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full.

Voting Rights. Each holder of the Series C Preferred Stock shall have the right to vote on any matter that may from time to time be submitted to the Company’s shareholders for a vote, on an as-converted basis, either by written consent or by proxy.

Conversion at Option of Holder. Each share of Series C Preferred Stock was convertible into 1% of the total issued and outstanding shares of the Company’s Common Stock (as determined at the earlier of (i) the date of Conversion of the Series C Preferred Stock; and (ii) eighteen (18) months following February 8, 2021) (“Conversion Ratio”), at the option of a Holder, at any time and from time to time, from and after the issuance of the Series C Preferred Stock, except that such conversion will automatically be adjusted so that the Holder’s total beneficial ownership does not

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

exceed greater than 9.99% of the issued and outstanding shares of the Company’s Common Stock. In April 2022, the Company filed an Amended and Restated Certificate of Designation, Preference and Rights of the Series C Convertible Preferred Stock whereby the conversion term was amended to:

(a)Conversion at Option of holder. Each share of Series C Preferred Stock shall be convertible into 21.34 post-split shares (10,670 pre-split shares) of Common Stock (“Conversion Ratio”), at the option of a Holder, at any time and from time to time, from and after the issuance of the Series C Preferred Stock; provided that, for period of twenty for (24) months from the Issuance Date, if the Company issues shares of common stock, including common stock as the result of the purchase, exercise, or conversion of outstanding derivative or convertible securities (or securities, including any derivative securities, containing the right to purchase, exercise or convert into shares of common stock) (the “Dilution Shares”) such that the outstanding number of shares of common stock on a fully diluted basis shall be greater than 2,133,812 post-split shares (1,066,906,000 pre-split shares) (inclusive of conversions of Series C Preferred Stock at the Conversion Ratio immediately above), then the Conversion Ratio for the Series C Preferred Stock then outstanding and unconverted as of the date the Dilution Shares are issued shall be adjusted to equal the Conversion Ratio multiplied by a fraction, the numerator of which shall be the number of shares outstanding on a fully diluted basis after the issuance of the Dilution Shares, and the denominator shall equal to the sum of the

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

currently issued and outstanding shares plus the Dilution Shares. A Ho1der shall affect a conversion by surrendering to the Company the original certificate or certificates representing the ·Shares of series C Preferred Stock to be converted to the Company, together with a completed form of conversion notice (the “Conversion Notice”). Each Conversion Notice shall specify the number of shares of Series C Preferred Stock to be converted, the date on which such conversion is to be affected, which date may not be prior to the Date the Holder delivers such Conversion Notice (the “Conversion Date”), and the Conversion Price determined. If no Conversion Date is specified in a Conversion Notice, the Conversion Date shall be the date that the Conversion Notice is delivered and each Conversion Notice, once given, shall be irrevocable.

On February 10, 2021, the Company issued 5 Series C Convertible Preferred Stock in connection with the acquisition of Aphrodite’s Marketing.

On April 18, 2022, the Company received a notice of conversion from the holder of the 5 shares of Series C Convertible Preferred Stock converting into 271,793 post-split shares (135,896,517 pre-split shares) of the Company’s common stock.

As of ~~June~~September 30, 2023 and December 31, 2022, there were no shares of Series C Convertible Preferred Stock issued and outstanding.

Certificate of Designation of Series D 3% Convertible Preferred Stock

On January 4, 2022, the Company filed a Certificate of Designation for Series D Convertible Preferred Stock with the Wyoming Secretary of State, designating 2,500,000 shares of preferred stock as Series D Convertible Preferred Stock. In February 2022, the Company filed an Amended and Restated Certificate of Designation, Preference and Rights of the Series D Convertible Preferred Stock. The Company amended and cancelled the mandatory provision and also amended the fixed conversion price from $0.50 to $0.40 post-split ($0.001 to $0.0008 pre-split). In April 2022, the Company filed another Amended and Restated Certificate of Designation, Preference and Rights of the Series D Convertible Preferred Stock whereby the Company amended the fixed conversion price from $0.40 to $0.25 post-split ($0.0008 to $0.0005 pre-split). In October 2022, the fixed conversion price was adjusted from $0.25 to $0.10 post-split ($0.0005 to $0.0002 pre-split) due to the subsequent sale of the Company’s common stock at $0.10 post-split ($0.0002 pre-split) per share in October 2022.

Designation. The Company has designated 2,500,000 shares of preferred stock as Series D Convertible Preferred Stock. Each share of Series D Convertible Preferred Stock has a par value of $0.00001 per share and a stated value of $1.00.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Dividends. Each share of Series D Convertible Preferred Stock is entitled to an annual dividend equal to 3% of the stated value which shall be cumulative, payable solely upon redemption, liquidation or conversion. Upon the occurrence of an event of default, the dividend rate shall automatically increase to 18%.

Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary or upon any deemed liquidation event, after payment or provision for payment of debts and other liabilities of the Company and after payment or provision for ay liquidation preference payable to the holders of any preferred stock ranking senior upon liquidation to the Series D Preferred Stock, if any, but prior to any distribution or payment made to the holders of common stock or the holders of the preferred stock ranking junior upon liquidation to the Series D Preferred Stock, the holders will be entitled to be paid out of the assets of the Company available for distribution an amount equal to the stated value plus any accrued but unpaid dividends, default adjustment, if applicable, and any other fees.

Voting Rights. Except as set forth in the Certificate of Designation, the Series D Preferred Stock shall have no right to vote on any matters requiring shareholder approval or any matters on which the shareholders are permitted to vote. With respect to any voting rights of the Series D Preferred Stock, the Series D Preferred Stock shall vote as a class, each share of Series D Preferred Stock shall have one vote on any such matter, and any such approval may be given via a written consent in lieu of a meeting of the Series D Holders.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Conversion price. The effective conversion price (the “Conversion Price”) shall equal the fixed conversion price equal to $0.10 post-split ($0.0002 pre-split) (subject to equitable adjustments by the Company relating to the Company’s securities or the securities of any subsidiary of the Company, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). Notwithstanding anything contained herein to the contrary, in the event that, following the date of issuance of the Series D Preferred Stock, the Company consummates a financing of at least $7,500,000, in the aggregate, in one offering or a series of offerings (debt or equity or a combination), the Conversion Price shall be reset to the Variable Conversion Price. The “Variable Conversion Price” shall mean 65% multiplied by the market price (representing a discount rate of 35%). Market price means the average of the lowest trading prices for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date.

Most Favored Nation. During the period where any shares of Series D Preferred Stock are issued and outstanding, if the Company engages in any future financing transactions with a third party investor, the Company will provide the Holder with written notice (the “MFN Notice”) thereof promptly but in no event less than 10 days prior to closing any financing transactions. Included with the MFN Notice shall be a copy of all documentation relating to such financing transaction and shall include, upon written request of the Holder, any additional information related to such subsequent investment as may be reasonably requested by the Holder. In the event the Holder determines that the terms of the subsequent investment are preferable to the terms of the securities of the Company issued to the Holder pursuant to the terms of this Designation, the Holder will notify the Company in writing. Promptly after receipt of such written notice from the Holder, the Company agrees to amend and restate the terms of this Designation, to be identical to the instruments evidencing the subsequent investment.

On March 24, 2023, the Company and Trillium Partners, L.P. (the “Holder”) entered into an Exchange Agreement whereby the Holder will exchange (the “Exchange”) 317,000 Series D Preferred Stock of the Company for 317,000 Series E Preferred Stock of the Company for shares of the Company’s Series E Preferred stock which shall have the rights and preferences in the Certificate of Designation of the Series E Preferred Stock as discussed above and for no other consideration.

In July 2023, the Company received a notice of conversion from a Series D Preferred Stockholder related to accrued dividends of $1,275 converting into 3,642,857 shares of the Company’s common stock. In connection with the decrease in conversion price of the Series D Convertible Preferred Stock, the Company recognized deemed dividend of 7,623 during the nine months ended September 30, 2023.

As of ~~June~~September 30, 2023 and December 31, 2022, there were 957,000 and 1,274,000 shares of Series D Convertible Preferred Stock issued and outstanding, respectively.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Certificate of Designation of Series E 3% Preferred Stock

On March 24, 2023, the Company filed a Certificate of Designation for Series E Preferred Stock with the Wyoming Secretary of State, designating 2,500,000 shares of preferred stock as Series E Preferred Stock.

Designation. The Company has designated 2,500,000 shares of preferred stock as Series E Preferred Stock. Each share of Series E Preferred Stock has a par value of $0.00001 per share and a stated value of $1.00 (the “Stated Value”).

Voting Rights. The Series E Preferred Stock shall have no right to vote on any matters requiring shareholder approval or any matters on which the shareholders are permitted to vote.

Dividends. Each share of Series E Preferred Stock is entitled to an annual dividend equal to 3% of the stated value which shall be cumulative, payable solely upon redemption, liquidation or conversion. Upon the occurrence of an event of default, the dividend rate shall automatically increase to 18%.

Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary or upon any deemed liquidation event, after payment or provision for payment of debts and other liabilities of the Company and after payment or provision for ay liquidation preference payable to the holders of any preferred stock ranking senior upon liquidation to the Series E Preferred Stock, if any, but prior to any distribution or payment made to the holders of common stock or the holders of the preferred stock ranking junior upon liquidation to the Series E Preferred Stock, the holders will be entitled to be paid out of the assets of the Company available for distribution an amount equal to the stated value plus any accrued but unpaid dividends, default adjustment, if applicable, and any other fees (collectively the “Adjustment Amount”).

No Conversion Right. The Holder shall have no right at any time to convert all or any part of the outstanding Series E Preferred Stock into shares of common stock.

Mandatory Redemption by the Company. On the date which is the earlier of: (i) December 31, 2023; and (ii) upon the occurrence of an Event of Default (i) or (ii), the Mandatory Redemption Date the Company shall redeem all of the shares of Series E Preferred Stock of the Holders. Within five (5) days of the Mandatory Redemption Date, the Company shall make payment to each Holder of an amount in cash, or kind, equal to (i) the total number of Series E Preferred Stock held by the applicable Holder, multiplied by (ii) the then current Stated Value (including but not limited to the addition of any accrued, unpaid dividends and the Default Adjustment, if applicable) (the "Mandatory

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

Redemption Amount”). The value of any payment in kind shall be as agreed between the Company and respective the Holder.

Default Adjustment. Upon the occurrence and during the continuation of any Event of Default (other than as set forth in Section 8ai of the amendment which is the failure to redeem), the Stated Value shall immediately be increased to $1.50 per share of Series E Preferred Stock; and upon the occurrence and during the continuation of any Event of Default specified in Section 8ai which is the failure to redeem, the Stated Value shall immediately be increased to $2.00 per share of Series E Preferred Stock (the amounts referred to herein shall be referred to collectively as the “Default Adjustment”). In the event of a Default Adjustment, the Company shall immediately, upon the demand of the Majority Holders, redeem the issued and outstanding Series E Preferred Stock and pay to the Holders the amount which is equal to (i) the number of shares of Series E Preferred Stock held by such Holders multiplied by (ii) the Stated Value plus any Adjustment Amount. Upon any Event of Default set forth in Section 8(A)(ix), provided that there is no other default, no Default Adjustment shall occur; however, the Company shall immediately, upon the demand of the Majority Holders, redeem the issued and outstanding Series E Preferred Stock and pay to the Holders the amount which is equal to (i) the number of shares of Series E Preferred Stock held by such Holders multiplied by (ii) the Stated Value plus any Adjustment Amount.

As of ~~June~~September 30, 2023, there were 317,000 shares of Series E Preferred Stock issued and outstanding. The Series E preferred shares are mandatorily redeemable by the Company and are therefore classified as ~~mezzanine debt~~a liability for $317,000 as reflected in the unaudited condensed consolidated balance sheet.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Dividends on Preferred Stock

As of ~~June~~September 30, 2023 and December 31, 2022, accrued and unpaid dividends related to the Series B, C, D and E Preferred Stock amounted ~~$54,126~~$62,722 and $32,198, respectively and was included in accounts payable and accrued liabilities as reflected in the unaudited condensed consolidated balance sheets. During the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, total dividends recorded amounted to $21,928 and $14,232, respectively as reflected in the unaudited condensed consolidated statements of stockholders’ equity.

Common Stock Issued and Issuable

On April 28, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 6,000,000,000 shares to 9,000,000,000 shares.

In March 2023, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 15,000,000,000 shares to 25,000,000,000 shares. In the same Articles of Amendment, the Company filed for a reverse split of the Company’s common stock, at the ratio of 1 for 500, which was declared effective by FINRA effective April 17, 2023. All share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the unaudited condensed consolidated financial statements to reflect the Reverse Stock Split.

Between April 2023 and June 2023, the Company issued 11,751,753 shares of its common stock at an average contractual conversion price of approximately $0.0018 as a result of the conversion of principal of $21,858 underlying certain outstanding convertible notes converted during such period.

~~BERGIO INTERNATIONAL, INC. AND SUBSIDIARY~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~JUNE 30, 2023 AND 2022~~

~~(UNAUDITED)~~

In June 2023, the Company issued 50,000,000 shares of its common stock to the CEO for accrued ~~compensation. The~~compensation and such 50,000,000 shares were subsequently returned to the Company by the CEO in September 2023. Accordingly, no value was recorded due to the return of the shares during the nine months ended September 30, 2023.

Between July 2023 and September 2023, the Company issued ~~50,000,000~~125,446,273 shares of its common stock and 11,300,000 common stock issuable at an average contractual conversion price of approximately $0.0004 as a result of the conversion of principal of $37,630 underlying certain outstanding convertible notes converted during such period.

In July 2023, the Company received a notice of conversion from a Series D Preferred Stockholder related to accrued dividends of $1,275 converting into 3,642,857 shares of the Company’s common ~~stock valued at approximately $0.002 per share or $100,000 being~~stock. In connection with the ~~closing~~decrease in conversion price of the ~~stock on~~Series D Convertible Preferred Stock, the ~~date~~Company recognized deemed dividend of ~~grant.~~7,623 during the nine months ended September 30, 2023.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

Common Stock Warrants

A summary of the Company’s outstanding stock warrants is presented below:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Balance at December 31, 2021		1,596,483	$	1.00		4.26		1,596,483	$	1.00		4.26
Granted		1,500,000		0.25		7.00		1,500,000		0.25		7.00
Exercised		(500)		0.50		2.40		(500)		0.50		2.40
Balance at December 31, 2022		3,095,983	$	0.70		4.71		3,095,983	$	0.70		4.71
Granted		-		-		-		8,500,000		0.0013		7.00
Exercised		-		-		-		-		-		-
Balance at June 30, 2023		3,095,983	$	0.70		4.21
Warrants exercisable at June 30, 2023		3,095,983	$	0.70		4.46
Balance at September 30, 2023								11,595,983	$	0.19		6.09
Warrants exercisable at September 30, 2023								11,595,983	$	0.19		6.09

At ~~June~~September 30, 2023, the aggregate intrinsic value of warrants outstanding was $0.

In connection with a convertible note dated August 10, 2023, the Company issued an aggregate of 8,500,000 warrants to purchase common stock to such lender immediately exercisable at an initial exercise price of $0.0013 per share (subject to certain adjustments such as stock split, dividend, subsequent issuance of rights or options, subsequent convertible securities offering, consolidation or merger and pro-rata distribution) with an expiry date of August 10, 2030. The Company accounted for the 8,500,000 warrants issued with this note by using the relative fair value method. The total debt discount which is equivalent to the relative fair value of the warrants of $5,512 using a Black-Scholes model with the following assumptions: stock price at valuation date of $0.0013 based on the closing price of common stock at date of grant, exercise price of $0.0013, dividend yield of zero, expected term of 7.00, a risk-free rate of 4.17%, and expected volatility of 697%.

Note 13 - Subsequent Events

Common Stock for Debt Conversion

Between ~~July~~October 2023 and ~~August~~November 2023, the Company issued an aggregate of ~~19,356,071~~352,181,474 shares of its common stock at an average contractual conversion price of approximately ~~$0.0004~~$0.0002 as a result of the conversion of principal of ~~$8,825~~$73,355 and $500 fees underlying certain outstanding convertible notes converted during such period.

Common Stock for Series D Preferred Shares Conversion

Between October 2023 and November 2023, the Company received a notice of conversion from a Series D Preferred Stockholder for 7,771 Series D Preferred shares converting into 51,801,486 shares of the Company’s common stock.

Issuance of Convertible Note

October 26, 2023 Securities Purchase Agreement

On October 26, 2023, the Company entered into a securities purchase agreement with Trillium Partners LP (“Trillium”), which closed on November 6, 2023, pursuant to which Trillium purchased a convertible promissory note (the “October 26, 2023 Trillium Note”) from the Company in the aggregate principal amount of $8,500, such principal and the interest thereon convertible into shares of the Company’s common stock at the option of Trillium any time after 180 days of the October 26, 2023 Trillium Note. The October 26, 2023 Trillium Note contains debt issue costs of $1,000. The Company intends to use the net proceeds for general working capital purposes. The maturity date is October 31, 2024.

BERGIO INTERNATIONAL, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2023 AND 2022

(UNAUDITED)

In connection with such note, the Company issued 8,500,000 warrants to purchase common stock to such lender immediately exercisable at an initial exercise price of $0.0003 per share (subject to certain adjustments such as stock split, dividend, consolidation or merger and pro-rata distribution) with an expiry date of October 26, 2030.

The following terms shall apply to the above note:

The October 26, 2023 Note bears interest at a rate of 12% per annum, which interest may be paid by the Company to the lenders in shares of the Company’s common stock; but shall not be payable until the October 26, 2023 Note becomes payable, whether at the maturity date or upon acceleration or by prepayment.

During the first 180 days following the date of the October 26, 2023 Note, the Company has the right to prepay the principal and accrued but unpaid interest due under the above notes, together with any other amounts that the Company may owe the holder under the terms of the note, at a premium of 150% as defined in the note agreement. After this initial 180-day period, after the expiration of the prepayment periods set forth above, the Company may submit an optional prepayment notice to the lenders.

The conversion price for the above notes shall be equal to a 50% discount of the market price which means the lowest 30 trading prices of the Common Stock immediately prior to the delivery of a Notice of Conversion. Notwithstanding the foregoing, the lenders shall be restricted from effecting a conversion if such conversion, along with other shares of the Company’s common stock beneficially owned by lenders and its affiliates, exceeds 9.99% of the outstanding shares of the Company’s common stock. Notwithstanding the foregoing, such conversion price and lookback periods are subject to adjustment in favor of the Investor in the event the Company issues securities to another party with more favorable conversion terms (“Most Favored Nation”). During the period where any monies are owed to the lender pursuant to the October 26, 2023 Note, if the Company engages in any future financing transactions with a third party investor, the Company will provide the lender with written notice (the “MFN Notice”) thereof promptly but in no event less than 10 days prior to closing any financing transactions except for exempt issuances as defined in related the note agreement.

Upon certain events of default, the above the October 26, 2023 Note will become immediately due and payable and the Company must pay the lenders 150% of the then-outstanding principal amount of the above October 26, 2023 Note, plus any interest accrued upon such event of default or prior events of default (the “Default Amount”). Further, upon any event of default relating to the failure to issue shares of common stock upon the conversion of such notes, such notes become immediately due and payable in an amount equal to twice the Default Amount.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This quarterly report on Form 10-Q and other reports (collectively, the “Filings”) filed by Bergio International, Inc. (“Bergio” or the “Company”) from time to time with the U.S. Securities and Exchange Commission (the “SEC”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, the Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the Filings, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions as they relate to the Company or the Company’s management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including the risks contained in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 30, 2023, relating to the Company’s industry, the Company’s operations and results of operations, and any businesses that the Company may acquire. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our unaudited condensed unaudited condensed consolidated financial statements and notes thereto appearing elsewhere in this report.

Plan of Operation

The Bergio brand is our most important asset. The Bergio brand is associated with high-quality, handcrafted and individually designed pieces with European sensibility, Italian craftsmanship and a bold flair for the unexpected. Bergio is one of the most coveted brands of fine jewelry. Established in 1995, Bergio’s signature innovative design, coupled with extraordinary diamonds and precious stones, earned the company recognition as a highly sought-after purveyor of rare and exquisite treasures from around the globe.

When designer and PEO, Berge Abajian, creates a collection, he looks well beyond the drawing board. Berge focuses on the woman who will ultimately wear his pieces, bringing to creation a magnificent piece of jewelry that reflects the beauty and vitality a woman possesses. Bergio creations are a seamless blend of classic elegance and subtle flair, adding to a woman’s charm while never overpowering her.

It is our intention to establish Bergio as a holding company for the purpose of establishing retails stores worldwide. Our branded product lines are products and/or collections designed by our designer and CEO Berge Abajian and will be the centerpiece of our retail stores. We also intend to complement our own quality-designed jewelry with other products and our own specially designed handbags. This is in line with our strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products.

It is our intention to open elegant stores in “high-end” areas and provide excellent service in our stores which will be staffed with knowledgeable professionals.

We also intend to sell our products on a wholesale basis to limited customers. In 2019 we introduced The Silver Fashion Collection ranging in price from $50 to $1,200. The Company also introduced the Bergio Handbag Collection, manufactured in Italy with top quality Italian leather ranging in price from $450 to $875, which are very competitive entry prices.

Our products consist of a wide range of unique styles and designs made from precious metals such as, gold, platinum, and Karat gold, as well as diamonds and other precious stones. We currently design and produce approximately 100 to 150 product styles. Current retail prices for our products range from $400 to $200,000. We have manufacturing control over our line as a result of having a manufacturing facility in New Jersey as well as subcontracts with facilities located in Italy.

On March 5, 2014, the Company formed a wholly owned subsidiary called Crown Luxe, Inc. in the State of Delaware (“Crown Luxe”). Crown Luxe was established to operate the Company’s first retail store, which was opened in Bergen County, New Jersey in 2014.

During the fall of 2018, we opened our second retail store at the new Ocean Resort Casino in Atlantic City, New Jersey. In March 2023, we opened our third retail store in Marmora, New Jersey. We are also contemplating the opening of new stores in the future.

On February 10, 2021, Bergio International, Inc. entered into an Acquisition Agreement with Digital Age Business, Inc., a Florida corporation, (“Digital Age Business”), pursuant to which the shareholders of Digital Age Business agreed to sell all of the assets and liabilities of its Aphrodite’s business to a recently formed subsidiary of the Company known as Aphrodite’s Marketing, Inc., a Wyoming corporation in exchange for created Series B Preferred Stock of the Company, which collectively, shall be convertible at Shareholders’ option, at any time, in whole or in part, into that number of shares of common stock of the Company which shall equal thirty percent (30%) of the total issued and outstanding common stock of the Company (as determined at the earlier of (i) the date of conversion of the Series B Preferred Stock; and (ii) eighteen (18) months following the Closing). In addition, the Company will provide an additional $5,000,000 in financing for Aphrodite’s Marketing, Inc. We own 51% of Aphrodite’s Marketing, Inc.

On July 1, 2021, we entered into an Agreement and Plan of Merger with GearBubble, Inc., a Nevada corporation, pursuant to which the shareholders of GearBubble agreed to sell 100% of the issued and outstanding shares of GearBubble to a recently formed subsidiary of the Company known as GearBubble Tech, Inc., a Wyoming corporation in exchange for $3,162,000 (the “Cash Purchase Price”), which shall be paid as follows: a) $2,000,000 (which was paid in cash at Closing), b) $1,162,000 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by the Company, and 49% of the Merger Sub shall be owned by the GearBubble Shareholders. We own 51% of GearBubble Tech, Inc.

The funding for these acquisitions were a combination of proceeds from the issuance of common stock from our S-1 Registration Statement and ~~debt.~~debt in fiscal year 2021.

Aphrodite’s Marketing and GearBubble Tech have increased our online presence and provide for expansion of the Bergio Brand. Aphrodite is a one-stop shop for jewelry, gifts, and surprises for any occasion. The online stores provide a unique gifting experience in the ecommerce space. With their technological experience in ecommerce, we expect to grow the Bergio Brand, and in conjunction with Bergio’s design expertise and years of experience in the jewelry industry, we believe we can successfully grow the business.

The Company has instituted various cost saving measures to conserve cash and has worked with its debtors in an attempt to negotiate the debt terms. The Company has been also investigating various strategies to increase sales and expand its business. The Company is in negotiations with some potential partners, but, at this time, there is nothing concrete, but the Company remains positive about its prospects. However, there is no assurance that the Company will be successful in its endeavors or that it will be able to increase its business.

Our future operations are contingent upon increasing revenues and raising capital for on-going operations and expansion of our product lines. Because we have a limited operating history, you may have difficulty evaluating our business and future prospects.

The Company’s retail operations have been and continue to be affected by the recent and ongoing outbreak of the coronavirus disease (COVID -19) which in March 2020, was declared a pandemic by the World Health Organization.

The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the Company’s financial position, operations and cash flows. Possible areas that may be affected include, but are not limited to, disruption to the Company’s customers and revenue, labor workforce, unavailability of products and supplies used in operations, and the decline in value of assets held by the Company, including property and equipment.

Recent Developments

October 26, 2023 Securities Purchase Agreement

Results of Operations

Overview

We have expanded our online presence and the Company continues to position itself for the future with the acquisition of Aphrodite’s Marketing and GearBubble Tech and take advantage of the Bergio brand in the E-Commerce space as well as establishing a chain of retail stores worldwide. Our branded product lines are products and/or collections designed by our designer and CEO Berge Abajian and will be the centerpiece of our retail stores. We also intend to complement our own quality-designed jewelry with other products and our own specially designed handbags. This is in line with our strategy and belief that a brand name can create an association with innovation, design and quality which helps add value to the individual products as well as facilitate the introduction of new products. It is our intention to open elegant stores in “high-end” areas and provide excellent service in our stores which will be staffed with knowledgeable professionals. We continue to be excited about our store in Atlantic City, NJ. Our initial store in northern New Jersey has not done as well as we had hoped and the wholesale market has also not been favorable but with the addition of our online presence it has helped the company to reach a favorable balance.

The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

	Six Months Ended							Nine Months Ended
	June 30, 2023		June 30, 2022		Increase (Decrease)		Percent Increase (Decrease)	September 30, 2023		September 30, 2022		Increase (Decrease)		Percent Increase (Decrease)
Net revenues	$	2,797,785	$	4,415,032	$	(1,617,247)	(36.63)%	$	3,667,257	$	5,733,883	$	(2,066,626)	(36.04)%
Net revenues – related parties		-		139,716		(139,716)	(100)%
Net revenues - related parties									-		139,716		(139,716)	(100)%
Total net revenues		2,797,785		4,554,748		(1,756,963)	(38.57)%		3,667,257		5,873,599		(2,206,342)	(37.56)%

Cost of revenues		1,377,988		2,237,387		(859,399)	(38.41)%		1,877,397		2,832,043		(954,646)	(33.71)%

Gross profit	$	1,419,797	$	2,317,361	$	(897,564)	(38.73)%	$	1,789,860	$	3,041,556	$	(1,251,696)	(41.15)%

Gross profit as a % of sales		50.74%		50.87%					48.81%		51.78%

Three Months Ended

June 30,
2023
June 30,
2022
Increase
(Decrease)
Percent Increase
(Decrease)
Net revenues
$
1,409,422
$
2,458,531
$
(1,049,109)
(42.67)%
Net revenues – related parties

-

666

(666)
(100)%
Total net revenues

1,409,422

2,459,197

(1,049,775)
(42.69)%

Cost of revenues

609,327

990,650

(381,323)
(38.49)%

Gross profit
$
800,095
$
1,468,547
$
(668,452)
(45.52)%

Gross profit as a % of sales

56.76%

59.71%

	Three Months Ended
	September 30, 2023		September 30, 2022		Increase (Decrease)		Percent Increase (Decrease)
Net revenues	$	869,472	$	1,318,851	$	(449,379)	(34.07)%
Net revenues - related parties		-		-		-	-%
Total net revenues		869,472		1,318,851		(449,379)	(34.07)%

Cost of revenues		499,409		595,063		(95,654)	(16.07)%

Gross profit	$	370,063	$	723,788	$	(353,725)	(48.87)%

Gross profit as a % of sales		42.56%		54.88%

Net Revenues

Total net revenues for the ~~six~~nine months ended ~~June~~September 30, 2023 which amounted to ~~$2,797,785~~$3,667,257 decreased by ~~$1,756,963~~$2,066,626 as compared to ~~$4,554,748~~$5,873,599 which included net revenues - related parties for the ~~six~~nine months ended ~~June~~September 30, 2022. Total net revenues for the three months ended ~~June~~September 30, 2023 which amounted to ~~$1,409,422~~$869,472 decreased by ~~$1,049,109~~$449,379 as compared to ~~$2,459,197.~~$1,318,851 for the three months ended September 30, 2022. The decrease in total net revenues during the three and ~~six~~nine months ended ~~June~~September 30, 2023, was primarily attributable to the decrease in revenues of our majority owned subsidiary, Aphrodite’s Marketing, as a result

of the decrease in marketing and advertising expenses through social media, digital marketing, and promotional campaigns.

Cost of Revenues

Cost of revenues consists primarily of the cost of the merchandise, shipping fees, credit card processing services, fulfillment cost, ecommerce sellers’ pay-out; costs associated with operation and maintenance of the Company’s platform. Cost of revenues for the ~~six~~nine months ended ~~June~~September 30, 2023 decreased by ~~$859,399~~$954,646 to ~~$1,377,988~~$1,877,397 as compared to ~~$2,237,387~~$2,832,043 for the ~~six~~nine months ended ~~June~~September 30, 2022. Cost of revenues for the three months ended ~~June~~September 30, 2023 decreased by ~~$381,323~~$95,654 to ~~$609,327~~$499,409 as compared to ~~$990,650~~595,063 for the three months ended ~~June~~September 30, 2022.These decreases are primarily attributable to the decrease in net revenues as discussed above.

Gross Profit

Gross profit decreased by ~~$897,564~~$1,251,696 to ~~$1,419,797~~$1,789,860 for the ~~six~~nine months ended ~~June~~September 30, 2023 as compared to ~~$2,317,361~~$3,041,556 for the ~~six~~nine months ended ~~June~~September 30, 2022. Gross profit decreased by ~~$668,452~~$353,725 to ~~$1,468,547~~$370,063 for the three months ended ~~June~~September 30, 2023 as compared to ~~$1,468,547~~$723,788 for the three months ended ~~June~~September 30, 2022. These decreases are primarily attributable to the decrease in revenues as discussed above.

Operating Expenses

Operating expenses decreased by ~~$1,613,377~~$2,336,194 to ~~$2,289,258~~$3,101,924 for the ~~six~~nine months ended ~~June~~September 30, 2023 as compared to ~~$3,902,635~~$5,438,118 for the ~~six~~nine months ended ~~June~~September 30, 2022. The decrease was primarily attributable to i) decrease in selling and marketing expenses of ~~$1,101,322~~$1,391,317 primarily attributable to decrease in advertising and marketing activities through social media, digital marketing, and promotional campaigns ii) decrease professional and consulting expenses of ~~$141,801~~$306,062 primarily related to decrease in consulting and contractor fees iii) decrease in compensation and related taxes of ~~$324,564~~$540,813 primarily related to the decrease in number of employees of our majority owned subsidiary, Aphrodite’s Marketing iv) decrease in general and administrative expenses of ~~$45,690~~$98,002 primarily attributable to decrease in rent and office expenses.

Operating expenses decreased by ~~$1,087,389~~$722,410 to ~~$1,002,475~~$812,666 for the three months ended ~~June~~September 30, 2023 as compared to ~~$2,089,864~~$1,535,076 for the three months ended ~~June~~September 30, 2022. The decrease was primarily attributable to i) decrease in selling and marketing expenses of ~~$740,398~~$289,588 primarily attributable to decrease in advertising and marketing activities through social media, digital marketing, and promotional campaigns ii) decrease professional and consulting expenses of ~~$120,123~~$164,261 primarily related to decrease in consulting and contractor fees iii) decrease in compensation and related taxes of ~~$212,748~~$216,249 primarily related to the decrease in number of employees of our majority owned subsidiary, Aphrodite’s Marketing iv) decrease in general and administrative expenses of ~~$14,120~~$52,312 primarily attributable to decrease in rent and office expenses.

The overall decrease in operating expenses reflect were due to the cost-cutting measures made during the three and ~~six~~nine months ended ~~June~~September 30, 2023.

Loss from Operations

As a result of the above, we had a loss from operations of ~~$869,461~~$1,312,064 for the ~~six~~nine months ended ~~June~~September 30, 2023 as compared to a loss from operations of ~~$1,585,274~~$2,396,562 for the ~~six~~nine months ended ~~June~~September 30, 2022 and loss from operations of ~~$202,380~~$442,603 for the three months ended ~~June~~September 30, 2023 as compared to a loss from operations of ~~$621,317~~$811,288 for the three months ended ~~June~~September 30, 2022.

Other Income (Expenses), net

For the ~~six~~nine months ended ~~June~~September 30, 2023, the Company had other (expenses), net of ($~~641,040)~~2,006,026) as compared to other (expenses), net of ($~~678,417)~~722,284) for the ~~six~~nine months ended ~~June~~September 30, 2022, a decrease of ~~$37,377~~$28,322 in other expenses, net. The decrease in other expenses, net is primarily attributed to the decrease in amortization of debt discount of ~~$227,833~~$233,243 and decrease in interest expense of ~~$737,723~~$739,131 due to decrease in number of convertible notes, increase in gain from forgiveness of accounts payable of $231,806 that management deemed forgiven, offset by decrease in change in fair value of derivative liabilities of ~~$609,320,~~$450,022, increase in derivative expense of ~~$334,812,~~$501,599, and decrease in gain from extinguishment of debt of ~~$221,100.~~$234,082.

For the three months ended ~~June~~September 30, 2023, the Company had other (expenses), net of ($~~326,146)~~52,922) as compared to other ~~income,~~(expenses), net of ~~$435,937~~($43,867) for the three months ended ~~June~~September 30, 2022, an increase of ~~$762,083~~$9,055 in other expenses, net. The increase in other expenses, net is primarily attributed to increase in derivative expense of $166,787, offset by the ~~increase~~decrease in amortization of debt discount of ~~$70,466 and increase~~$5,410, decrease in interest expense of ~~$200,052~~$1,408 related to our notes, loans and advances payable, ~~increase in derivative expense of $351,712, offset by~~ decrease in change in fair value of derivative liabilities of ~~$295,953, increase in gain from forgiveness of accounts payable of $231,806 that management deemed forgiven,~~$159,298, and decrease in gain from extinguishment of debt of ~~$71,345.~~$12,982.

Net ~~Income (Loss)~~Loss Attributable to Bergio International, Inc.

As a result of the above, we had net loss attributable to Bergio International, Inc. ~~($1,216,854)~~$1,544,003 for the ~~six~~nine months ended ~~June~~September 30, 2023 as compared to ~~($1,565,075)~~$2,146,779 for the ~~six~~nine months ended ~~June~~September 30, 2022. As a result of the above, we had net loss attributable to Bergio International, Inc. ~~($549,799)~~$327,149 for the three months ended ~~June~~September 30, 2023 as compared to ~~$20,511~~$581,704 for the three months ended ~~June~~September 30, 2022.

Net Loss Available to Bergio International, Inc. Common Stockholders

As a result of the above, we had net loss available to Bergio International, Inc. common stockholders of ~~$1,216,854,~~$1,551,626, for the ~~six~~nine months ended ~~June~~September 30, 2023 as compared to ~~$1,565,075~~$3,702,657 for the ~~six~~nine months ended ~~June~~September 30, 2022 after the recognition of deemed dividend of $7,623 and $1,555,878 ~~upon the issuance of~~related to the Series D Preferred ~~Stock.~~Stock for nine months ended September 30, 2023 and 2022, respectively. We had net loss available to Bergio International, Inc. common stockholders of ~~$549,799~~$334,772 for the three months ended ~~June~~September 30, 2023 as compared to ~~$720,367~~$581,704 for the three months ended ~~June~~September 30, 2022 after the recognition of deemed dividend of ~~$740,878 upon the issuance of~~$7,623 related to the Series D Preferred Stock.

Liquidity and Capital Resources

The following table summarizes working capital at ~~June~~September 30, 2023, compared to December 31, 2022:

	June 30, 2023		December 31, 2022		Increase/ (Decrease)		September 30, 2023		December 31, 2022		Increase/ (Decrease)
Current Assets	$	3,162,839	$	3,440,464	$	(277,625)	$	3,017,033	$	3,440,464	$	(423,431)

Current Liabilities	$	5,265,518	$	4,254,005	$	1,011,513	$	5,923,379	$	4,254,005	$	1,669,374

Working Capital Deficit	$	(2,102,679)	$	(813,541)	$	1,289,138	$	(2,906,346)	$	(813,541)	$	2,092,805

At ~~June~~September 30, 2023 the Company had working capital deficit of ~~$2,102,679~~$2,906,346 as compared to $813,541 at December 31, 2022. This increase in working capital deficit is primarily attributed to the increase in liabilities.

During the ~~six~~nine months ended ~~June~~September 30, 2023, the Company’s principal sources and uses of funds were as follows:

Cash used in operating activities: For the ~~six~~nine months ended ~~June~~September 30, 2023, the Company used ~~$687,567~~$886,156 in cash for operations as compared to ~~$1,577,894~~$2,175,047 in cash used for operations for the ~~six~~nine months ended ~~June~~September 30, 2022. This decrease in cash used in operations is primarily attributed to net loss of ~~$1,216,854,~~$1,544,003, amortization expense of ~~$120,978,~~$181,467, amortization of debt discount and deferred financing cost of ~~$174,661,~~$242,324, depreciation of ~~$18,952, change in fair value of derivative liabilities of $52,766,~~$28,485, derivative expense of ~~$351,712~~$525,902 and increase in changes in operating assets and liabilities of ~~$365,982~~$597,823 primarily attributable to increase in accounts payable and accrued liabilities of ~~$338,411~~$460,849 and increase in accrued compensation of ~~$11,582~~ $148,239

offset by non-controlling interest of ~~$293,647,~~$462,023, gain from forgiveness of accounts payable of $231,806, change in fair value of derivative liabilities of $119,086, and gain from extinguishment of debt of ~~$40,304.~~$115,232.

For the ~~six~~nine months ended ~~June~~September 30, 2022, the Company used ~~$1,577,894~~$2,175,047 in cash for ~~operations.~~operations as compared to $2,295,489 in cash used for operations for the nine months ended September 30, 2021. This increase in cash used in operations is primarily attributed to net loss of ~~$1,565,075,~~$2,146,779, amortization expense of ~~$120,978,~~$181,467, non-cash interest upon conversion of debt of $1,025,660, amortization of debt discount and deferred financing cost of ~~$402,494,~~$475,567, stock based compensation of $213,674, offset by non-controlling interest of ~~$698,616,~~$972,067, change in fair value of derivative liabilities of ~~$556,554,~~$569,108, gain from extinguishment of debt ~~$261,404,~~$349,314, and decrease in changes in operating assets and liabilities of ~~$66,478~~$16,525 primarily attributable to increase in accounts receivable of ~~$90,062,~~$26,998, increase in accrued compensation – CEO of ~~$403,460,~~$319,765, decrease in inventory of ~~$205,297,~~$226,252, decrease in accounts payable and accrued liabilities of ~~$234,034,~~$227,296, and decrease in deferred compensation – CEO $346,163.

Cash used in investing activities: For the ~~six~~nine months ended ~~June~~September 30, 2023, the Company used $4,900 in cash for investing activities for purchase of property and equipment as compared to $0 of cash in investing activities for the ~~six~~nine months ended ~~June~~September 30, 2022.

Cash provided by financing activities: Cash provided by financing activities for the ~~six~~nine months ended ~~June~~September 30, 2023 was ~~$375,057~~$473,991 as compared to ~~$979,172~~$1,269,094 for the ~~six~~nine months ended ~~June~~September 30, 2022. This decrease is primarily the result of net proceeds received from loans and advances payable of $560,516, net proceeds from convertible note and note payable of ~~$130,000,~~$140,000, advances from CEO, net of ~~$103,949~~$192,783 offset by repayments of loans and advances payable of $419,408.

Cash provided by financing activities for the ~~six~~nine months ended ~~June~~September 30, 2022 was ~~$979,172~~$1,269,094 as compared to $4,254,782 for the nine months ended September 30, 2021 and was primarily the result of net proceeds received from convertible notes of ~~$76,250,~~$126,250, sale of preferred stock of $1,555,000, proceeds from loans ~~$595,600,~~$1,003,140, proceeds from a note of $110,000 offset by repayments of loans payable of ~~$641,606,~~$776,804, repayment of secured notes of $400,000, repayment of note of ~~$180,414~~$218,634 and repayment of advances to CEO of ~~$135,858.~~$129,858.

Our indebtedness is comprised of loans and advances payable, notes payable, convertible notes, and advances from a stockholder/officer intended to provide capital for the ongoing manufacturing of our jewelry line, in advance of receipt of the payment from our retail distributors.

Convertible Notes

From time to time the Company enters into certain financing agreements for convertible notes. For the most part, the Company settles these obligations with the Company’s common stock. As of ~~June~~September 30, 2023, principal amounts under the convertible note payable was ~~$245,873,~~$294,422, net of debt discount of ~~$75,615~~$92,263 at ~~June~~September 30, 2023.

Notes Payable

The Company has total notes payable of ~~$768,717~~$701,862 classified as current portion and total notes payable – long term portion of ~~$260,153~~$260,138 at ~~June~~September 30, 2023.

Loans and Advances Payable

The Company has loans and advances payable and accrued interest of ~~$1,379,567~~$1,415,844 at ~~June~~September 30, 2023.

Satisfaction of Our Cash Obligations for the Next 12 Months

A critical component of our operating plan impacting our continued existence is to efficiently manage our retail operations and successfully develop new lines through our Company or through possible acquisitions and/or mergers as well as opening new retail stores. Our ability to obtain capital through additional equity and/or debt financing, and joint venture partnerships will also be important to our expansion plans. In the event we experience any significant problems assimilating acquired assets into our operations or cannot obtain the necessary capital to pursue our strategic plan, we may have to reduce the growth of our operations. This may materially impact on our ability to increase revenue and continue our growth.

The Company has suffered recurring losses and has an accumulated deficit of ~~$20,844,140~~approximately $21.2 million as of ~~June~~September 30, 2023. As of ~~June~~September 30, 2023, the Company has ~~$245,873~~$294,422 in principal amounts of convertible notes, notes payable (current and long-term portion) of ~~$1,028,870,~~$962,000, loans and advances payable of ~~$1,379,567,~~$1,415,844, and advances from CEO including interest of ~~$260,861.~~$357,571. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The recoverability of a major portion of the recorded asset amounts shown in the accompanying unaudited condensed consolidated balance sheet is dependent upon continued operations of the Company, which in turn, is dependent upon the Company’s ability to raise capital and/or generate positive cash flows from operations.

These unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

Research and Development

We are not anticipating significant research and development expenditures in the near future.

Off-Balance Sheet Arrangements

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, results or operations, liquidity, capital expenditures or capital resources that is deemed material.

Critical Accounting Policies

Our critical accounting policies are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report. There have been no changes in our critical accounting policies. Our significant accounting policies are described in our notes to the consolidated financial statements for the year ended December 31, 2022 which is included in our Annual Report.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We do not hold any derivative instruments and do not engage in any hedging activities.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports we file pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide a reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Management designed the disclosure controls and procedures to provide reasonable assurance of achieving the desired control objectives.

We carried out an evaluation, under the supervision and with the participation of our management, including our PEO and PFO, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based upon that evaluation, the PEO and PFO concluded that the Company’s disclosure controls and procedures were not effective.

(b) Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A. Risk Factors.

We believe there are no changes that constitute material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 30, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

~~None.~~Between July 2023 and September 2023, the Company issued 125,446,273 shares of its common stock and 11,300,000 common stock issuable at an average contractual conversion price of approximately $0.0004 as a result of the conversion of principal of $37,630 underlying certain outstanding convertible notes converted during such period.

In July 2023, the Company received a notice of conversion from a Series D Preferred Stockholder related to accrued dividends of $1,275 converting into 3,642,857 shares of the Company’s common stock

Except as otherwise noted, the securities in the transactions describe above were sold in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act for transactions not involving any public offering. All certificates evidencing the shares sold bore a restrictive legend. No underwriter participated in the offer and sale of these securities, and no commission or other remuneration was paid or given directly or indirectly in connection therewith. The proceeds from these sales were used for general corporate purposes.

Item 3. Defaults upon Senior Securities.

There has been no default in payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

Item 4. Mine Safety Disclosure.

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.

Exhibit No.		Description

31.1		Certification of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002*

31.2		Certification of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 302 of 2002*

32.1		Certification of Principal Executive Officer, pursuant to 18 U.S.C. 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. 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 Linkbase *
101.DEF		XBRL Taxonomy Extension Definition Linkbase *
101.LAB		XBRL Taxonomy Extension Label Linkbase *
101.PRE		XBRL Taxonomy Extension Presentation Linkbase *

* Filed herewith

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		BERGIO INTERNATIONAL, INC.


Date: ~~August 14,~~November 17, 2023	By:	/s/ Berge Abajian
	Name:	Berge Abajian
	Title:	Chief Executive Officer
		(Principal Executive Officer)
		(Principal Financial Officer)
		(Principal Accounting Officer)

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