CHINA MEDIA INC. Forward Looking Statements
This quarterly report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report.
Results of Operations
Comparison of the six months ended
For Six Months Ended
December 31,
2019 2018
Operating expenses
Selling, general and administrative expense $ 118,441 $ 119,464
Impairment loss - 729,001
Total operating expenses 118,441 848,465
Other expense:
Interest expense 15,520 13,532
Total other expense 15,520 13,532
Net loss before income taxes (133,961) (861,997)
Income taxes - -
Net loss $ (133,961) $ (861,997)
Revenue and Cost
We had no sales and cost for the six months ended
Operating expenses
During the six months ended
Net loss
For the six months ended
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Comparison of the three months ended
For Three Months Ended
December 31,
2019 2018
Operating expenses
Selling, general and administrative expense $ 60,758 $ 60,256
Impairment loss - 729,001
Total operating expenses 60,758 789,257
Other expense:
Interest expense 8,672 6,684
Total other expense 8,672 6,684
Net loss before income taxes (69,430) (795,941)
Income taxes - -
Net loss $ (69,430) $ (795,941)
Revenue and Cost
We had no sales and cost for the three months ended
Operating expenses
During the three months ended
Net loss
For the three months ended
Liquidity and Capital Resources
The following table sets forth a summary of our cash flows for the periods
indicated:
For the Six Months Ended
December 31,
2019 2018
Net cash used in operating activities $ (89,389) $ (81,112)
Net cash provided by financing activities 88,816 77,758
Effect of exchange rate changes on cash and cash
equivalents (43) (260)
NET CHANGE IN CASH AND CASH EQUIVALENTS (616) (3,614)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,603 7,179
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,987 $ 3,565 As of
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For the six months ended
During the six months ended
Our cash level decreased by
We anticipate that we will meet our ongoing cash requirements through equity or debt financing. We plan to cooperate with various individuals and institutions to acquire the financing required to produce and distribute our products and anticipate this will continue until we accrue sufficient capital reserves to finance all of our productions independently.
We intend to meet our cash requirements for the next 12 months through a combination of debt financing and equity financing and partnerships with finance groups on television and movie projects.
Critical Accounting Policies and Estimates
Please refer to "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our 2019 10-K for disclosures regarding our critical
accounting policies and estimates. The interim financial statements follow the
same accounting policies and methods of computations as those for the year ended
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.
Inflation
The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.
Audit Committee
The functions of the audit committee are currently carried out by our Board of Directors, who has determined that we do not have an audit committee financial expert on our Board of Directors to carry out the duties of the audit committee. The Board of Directors has determined that the cost of hiring a financial expert to act as a director and to be a member of the audit committee or otherwise perform audit committee functions outweighs the benefits of having a financial expert on the audit committee.
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