The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 concerning future events or our future performance. Actual results may differ materially from those projected in forward-looking statements due to certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions made and the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that the underlying assumptions will prove, in fact, to be correct or that actual results will not differ from the expectations expressed herein. report. .
Expenses which include costs of goods sold will include license agreements and royalties, as well as operating and personnel costs related to the management of the Company’s subscribed radio network, product development and the costs of marketing the products. products. General and administrative costs include administrative salaries; office expenses; legal, accounting and other external professional fees; travel and other miscellaneous office and administrative expenses. Sales and marketing expenses include salaries and sales / marketing benefits, advertising and promotion expenses, as well as travel and other miscellaneous related expenses.
Since we have incurred losses, the income tax expense is negligible. No tax benefit has been recognized with respect to operating loss carryforwards, given our uncertainty as to the possibility of using these loss carryforwards in future years. We expect to incur additional losses in the coming year.
RESULTS OF OPERATION
The following is management’s discussion of the relevant items affecting the results of operations for the three months ended.
Income. The Company did not generate any net sales during the three months ended
Cost of sales. Our selling costs were
Salaries and consulting fees. Salaries payable and consulting fees have been
Professional fees. Professional fees were
Other selling, general and administrative expenses. Other selling, general and administrative expenses were
Other income (expenses). The Company had other net expenses of
for the three months ended
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LIQUIDITY AND CAPITAL RESOURCES
We incurred significant net losses which resulted in negative working capital and an accumulated deficit in the
We believe these conditions result from the inherent risks associated with small public companies. These risks include, but are not limited to, the ability to (i) generate income and sales from our products and services at levels sufficient to cover our costs and provide a return to investors, (ii) attract additional capital in order to to finance growth, and (iii) to compete successfully with other comparable companies with financial, production and marketing resources clearly superior to those of the Company.
We believe that our capital resources are insufficient for current operations, with minimal current cash reserves, especially given the resources required to grow our multimedia entertainment business. We are likely to need significant amounts of funding to make significant progress in our business strategy. There is currently no agreement in place that will secure funding for our company, and we cannot assure you that we will be able to raise additional funds, or that such funds will be available on acceptable terms. Funds raised through future equity financing will likely have a significant dilutive effect on current shareholders. Lack of additional funds will significantly affect our company and operations and may cause us to significantly reduce or even cease operations. As a result, you could suffer a loss of your entire investment in the Company.
CRITICAL ACCOUNTING POSITIONS
Our financial statements and related public financial information are based on the application of generally accepted accounting principles in
(“GAAP”). GAAP requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, income and expenditure amounts reported. These estimates may also affect additional information contained in our external information, including information regarding contingencies, risks and financial position. We believe that our use of underlying accounting estimates and assumptions is in accordance with GAAP and is applied in a consistent and prudent manner. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results may differ materially from these estimates depending on different assumptions or conditions. We continue to monitor significant estimates made in preparing our financial statements.
Our main accounting policies are summarized in note 2 of our financial statements included in our
We account for revenue on agreements in accordance with FASB ASC No. 605, “Revenue Recognition”. In all cases, revenue is only recognized when the price is fixed and determinable, there is convincing evidence of an agreement, the service is rendered, and the collectability of the resulting receivable is reasonably assured.
RECENT ACCOUNTING POSITION STATEMENTS
We have reviewed the accounting pronouncements issued over the past two years and have adopted those that apply to the Company. We have determined that none of them had a material impact on our financial condition, results of operations or cash flows for the periods presented in this report.
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OFF-BALANCE SHEET ARRANGEMENTS
We do not have any arrangements, financings or other off-balance sheet relationships with unconsolidated entities or other persons, also known as “special purpose entities” (“SPE”).
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