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 relating to future events or our future performance. Actual results may differ materially from those projected in the 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 in fact prove to be correct or that actual results will not differ from the expectations expressed in this report. .
Expenses that include cost of goods sold will include license agreements and royalties, as well as operating and personnel costs related to the management of the Company’s syndicated radio network, product development and marketing costs for products. General and administrative expenses include administrative salaries; office expenses; excluding legal, accounting and other professional fees; travel and other miscellaneous office and administrative expenses. Sales and marketing expenses include sales/marketing salaries and benefits, advertising and promotion expenses, as well as travel and other miscellaneous related expenses.
As we incurred losses, the income tax expense is not material. No tax benefit has been recognized related to operating loss carryforwards, given our uncertainty about the ability to utilize 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 material items affecting operating results for the three and six months ended
Revenues. The Company did not generate any net income during the three months ended
Cost of sales. Our cost of sales was
Salaries and consulting fees. Payables and consulting fees have been
Professional fees. Professional fees were
Other selling, general and administrative expenses. Other selling, general and administrative expenses were
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Other income (expenses). The Company recorded other expenses net of
for the three months ended
CASH AND CAPITAL RESOURCES
Bank. Since our inception, we have funded our operations through a combination of short and long-term loans and the private placement of our common stock.
We incurred significant net losses which resulted in negative working capital and an accumulated deficit
We believe that these conditions result from the inherent risks associated with smaller public companies. These risks include, but are not limited to, the ability to (i) generate revenue and sales of our products and services at levels sufficient to cover our costs and provide a return to investors, (ii) attract additional capital in order to finance growth, and (iii) compete successfully with other comparable companies that have significantly greater financial, production and marketing resources than the Company.
We believe that our capital resources are insufficient for ongoing operations, with minimal current cash reserves, particularly given the resources needed to grow our multimedia entertainment business. We will likely need significant funding to significantly advance 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 are likely to be significantly dilutive to current shareholders. Lack of additional funds will significantly affect our company and business and could cause us to significantly reduce or even cease operations. Accordingly, you may suffer a loss of your entire investment in the Company.
MAIN 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 affect the amounts of assets, liabilities, revenues and expenses reported. These estimates may also affect additional information contained in our external information, including information regarding contingencies, risks and financial condition. We believe that our use of underlying accounting estimates and assumptions is in accordance with GAAP and is applied consistently and prudently. We base our estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made in the preparation of our financial statements.
Our significant accounting policies are summarized in note 2 of our financial statements included in our
We recognize revenue on arrangements in accordance with FASB ASC No. 605, “Revenue Recognition”. In all cases, revenue is not recognized until the price is fixed and determinable, there is persuasive evidence of an agreement, the service is rendered and collection of the resulting receivable is reasonably assured.
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RECENT ACCOUNTING PRONOUNCEMENTS
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 had a material impact on our financial condition, results of operations or cash flows for the periods presented in this report.
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” (“SPEs”).
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