SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS

We believe that it is important to communicate our future expectations to our security holders and to the public. This report, therefore, contains statements about future events and expectations which are "forward-looking statements" within the meaning of Sections 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934, including the statements about our plans, objectives, expectations and prospects under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." You can expect to identify these statements by forward-looking words such as "may," "might," "could," "would," "will," "anticipate," "believe," "plan," "estimate," "project," "expect," "intend," "seek" and other similar expressions. Any statement contained in this report that is not a statement of historical fact may be deemed to be a forward-looking statement. Although we believe that the plans, objectives, expectations and prospects reflected in or suggested by our forward-looking statements are reasonable, those statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements, and we can give no assurance that our plans, objectives, expectations and prospects will be achieved.

Important factors that might cause our actual results to differ materially from the results contemplated by the forward-looking statements are contained in the "Risk Factors" section of and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in our subsequent filings with the Securities and Exchange Commission. The following discussion of our results of operations should be read together with our financial statements and related notes included elsewhere in this report.





Company Overview

On January 4, 2001, we were incorporated in North Dakota as ADM Enterprises, Inc. On May 9, 2006, the Company changed both its name to ADM Endeavors, Inc. ("ADM Endeavors," or the "Company," "we," "us," or "our") and its domicile to the state of Nevada. On July 1, 2008, the Company acquired all of the assets of ADM Enterprises, LLC ("ADM Enterprises"), a sole proprietorship owned by Ardell and Tammera Mees, in exchange for 10,000,000 newly issued shares of our common stock. As a result, ADM Enterprises became a wholly owned subsidiary of the Company. ADM then provided installation services to grocery décor and design companies primarily in North Dakota.

On April 19, 2018, the Company acquired Just Right Products, Inc. ("JRP"), a Texas corporation. JRP was incorporated on January 17, 2010. The acquisition of 100% of JRP from its sole shareholder, Marc Johnson, was through a stock exchange whereby the Company issued 2,000,000 shares of restricted Series A preferred stock (the "Acquisition Shares") to Mr. Johnson in consideration of the acquisition of 100% of JRP from Mr. Johnson. Each share of the Series A preferred stock is convertible into ten shares of common stock, and each share has 100 votes on a fully diluted basis. The Acquisition Shares represented 61% of the voting shares of the Company, and thus there was a change of voting control in connection with the transaction, and the transaction was accounted for as a reverse acquisition.

JRP is focused on being an added value reseller with concentration in embroidery, screen printing, importing and uniforms for businesses, schools and individuals in the State of Texas.

On January 1, 2020, the Company determined that it would discontinue its business operations in North Dakota, specifically, ADM Enterprises (the "Disposed Company"). The Company divested itself of the Disposed Company, and since that time, the Company has been focusing exclusively on the business of its operational subsidiary, JRP.

U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. On February 24, 2022, a full-scale military invasion of Ukraine by Russian troops was reported. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. We are continuing to monitor the situation in Ukraine and globally and assessing its potential impact on our business.





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Additionally, Russia's prior annexation of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk regions of Ukraine and subsequent military interventions in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia, Belarus, the Crimea Region of Ukraine, the so-called Donetsk People's Republic, and the so-called Luhansk People's Republic, including agreement to remove certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication ("SWIFT") payment system, expansive ban on imports and exports of products to and from Russia and ban on exportation of U.S denominated banknotes to Russia or persons located there. Additional potential sanctions and penalties have also been proposed and/or threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain funding. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions may also magnify the impact of other risks described in this filing.

For the Three Months Ended September 30, 2022 and 2021





Revenues

Our revenue was $2,322,579 for the three months ended September 30, 2022, compared to $2,479,751 for the three months ended September 30, 2021, resulting in a decrease of $157,712, or 6.3%. The decrease in revenue is primarily due to a reduction in spending on government contracts, school uniforms and influencers merchandise sales.





Operating Expenses

Direct costs of revenues were $1,550,069 and $1,540,937 for the three months ended September 30, 2022 and 2021, respectively, resulting in an increase of $9,132, or 0.6%. This increase was a direct result of higher cost of goods and labor. The gross margin decreased from 37.9% as of September 30, 2021 to 33.3% as of September 30, 2022. The decrease in margin is primarily due to a new government contracts.

General and administrative expenses were $287,801 for the three months ended September 30, 2022, compared to $397,259 for the same period in 2021. The decrease in 2022 in general and administrative expenses of approximately 27.6% was primarily due to reduced marketing costs and wages.

Marketing and selling expenses were $14,201 for the three months ended September 30, 2022, compared to $50,426 for the same period in 2021. The decrease in 2022 in marketing and selling expenses of approximately 71.8% was primarily due to utilizing new lower-cost marketing techniques.

As a result, net income was $329,683 for the three months ended September 30, 2022, compared to net income of $593,494 for the three months ended September 30, 2021.

For the Nine Months Ended September 30, 2022 and 2021





Revenues

Our revenue was $4,678,635 for the nine months ended September 30, 2022, compared to $4,935,340 for the nine months ended September 30, 2021, resulting in a decrease of $256,705, or 5.2%. The decrease in revenue is primarily due to reduction in spending on government contracts, school uniforms and influencers merchandise sales.





Operating Expenses

Direct costs of revenues were $3,033,065 and $3,080,485 for the nine months ended September 30, 2022 and 2021, respectively, resulting in a decrease of $47,420, or 1.5%. The gross margin decreased from 37.6% as of September 30, 2021, to 35.2% as of September 30, 2022.





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General and administrative expenses were $1,036,045 for the nine months ended September 30, 2022, compared to $1,159,616 for the same period in 2021. The decrease in 2022 in general and administrative expenses of approximately 10.7% was primarily due to reduced marketing costs and wages.

Marketing and selling expenses were $47,182 for the nine months ended September 30, 2022, compared to $173,389 for the same period in 2021. The decrease in 2022 in marketing and selling expenses was approximately 72.8% primarily due to new marketing techniques.

As a result, net income was $415,980 for the nine months ended September 30, 2022, compared to net income of $583,290 for the nine months ended September 30, 2021.

Liquidity and Capital Resources

Liquidity and Capital Resources during the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021

We had cash provided by operations of $776,802 for the nine months ended September 30, 2022, compared to cash provided by operations of $622,183 for the nine months ended September 30, 2021. The increase in positive cash flow from operating activities for the nine months ended September 30, 2022, was primarily attributable to a decrease in accounts receivable. Cash used in operations for the nine months ended September 30, 2021, is primarily attributable to accounts receivables, related party.

We had cash used in investing activities of $275,424 for the nine months ended September 30, 2022, and $110,537 for the nine months ended September 30, 2021. The change in cash flow from investing activities for the nine months ended September 30, 2022, was attributable to a purchase of property and equipment in 2022.

We had cash used in financing activities of $212,963 for the nine months ended September 30, 2022, compared to cash used in financing activities of $134,810 for the same period in 2021. Cash used in financing activities consisted primarily of repayment on notes payable.

We will likely have to raise funds to pay for growth and acquisitions. We may have to borrow money from shareholders or issue debt or equity or enter into a strategic arrangement with a third party. There can be no assurance that additional capital will be available to us. We currently have no arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.





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Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of 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. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions and conditions. We continue to monitor significant estimates made during the preparation of our financial statements. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1, "Summary of Significant Accounting Policies" in our audited financial statements for the year ended December 31, 2021, included in our Annual Report on Form 10-K as filed on March 15, 2022, for a discussion of our critical accounting policies and estimates.

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