This Report on Form 10-Q contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. Reference is made in particular to the description of our plans and
objectives for future operations, assumptions underlying such plans and
objectives, and other forward-looking statements included in this report. Such
statements may be identified by the use of forward-looking terminology such as
"may," "will," "expect," "believe," "estimate," "anticipate," "intend,"
"continue," or similar terms, variations of such terms or the negative of such
terms. Such statements are based on management's current expectations and are
subject to a number of factors and uncertainties, which could cause actual
results to differ materially from those described in the forward-looking
statements. Such statements address future events and conditions concerning,
among others, capital expenditures, earnings, litigation, regulatory matters,
liquidity and capital resources, and accounting matters. Actual results in each
case could differ materially from those anticipated in such statements by reason
of factors such as future economic conditions, changes in consumer demand,
legislative, regulatory and competitive developments in markets in which we
operate, results of litigation, and other circumstances affecting anticipated
revenues and costs, and the risk factors set forth in the financial statements
and related notes included on the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2020, which was filed on April 15, 2021.
As used in this Form 10-Q, "we," "us," and "our" refer to Crank Media Inc.,
which is also sometimes referred to as the "Company."
We were incorporated in Nevada on February 26, 2013, and on April 4, 2016,
amended the Articles of Incorporation to change the name of the Company to Team
360 Sports Inc, on April 4, 2016, and then to Crank Media Inc, on December 22,
The Company has its Nevada registered office at 711 S. Carson Street, Suite 4,
Carson City, Nevada 89701. The Company's main phone number is 604-558-2515. Its
principal operations are conducted from its office at 1720 - 650 West Georgia
Street, Vancouver, British Columbia, Canada V6B 4N8. The Company's website on
the Internet at www.crankmedia.ca.
The Company's primary business activities are related to (i) the planning and
development for the production and distribution of music recordings, with four
different music recording artists currently under contract, (ii) the planning
and development of the production and distribution of movies, with two films
currently in pre-production and two other film scripts currently being
completed, and (iii) the planning and development of the production and
distribution of television shows, with two shows currently in pre-production,
one show in the phase of having the rights to certain of its episodes being
marketed, and a fourth show in a very preliminary stage of development. The
Company also is attempting to develop and build its virtual studio, and also
intends to further develop its easy to use platform digital administration
management systems for amateur sport s clubs, leagues and teams.
At March 31, 2021, the Company has had minimal revenues as the activities
described above are primarily in planning and development stages. The Company's
fiscal-year end is December 31.
A novel strain of coronavirus (COVID-19) was first identified in December 2019,
and subsequently declared a global pandemic by the World Health Organization on
March 11, 2020. As a result of the outbreak, many companies have experienced
disruptions in their operations and in markets served. The primary adverse
impact of COVID-19 on the Company's results of operations and financial position
as of March 31, 2021 has been a slowdown in the Company's film and television
production activities. The full extent of the future impacts of COVID-19 on the
Company's plan of operations is uncertain. A prolonged outbreak could have a
material adverse impact on the Company's ability to pursue its business plan in
the manner and timing anticipated.
Table of Contents
Results of Operations
The following discussion and analysis should be read in conjunction with the
Company's unaudited financial statements for the three months ended March 31,
2021, and 2020, and accompanying notes appended thereto that are included in
this quarterly report.
For the Three Months Ended March 31, 2021 and 2020
Our operating results for the three months ended March 31, 2021 and 2020, are as
Three Months Ended
2021 2020 Changes ($)
Revenues $ 639 $ 639 $ -
Operating expenses $ 328,145 $ 136,874 $ 191,271
Interest expense $ 8,790 $ 6,384 $ 2,406
Loss on settlement of debt $ 142,150 $ - $ 142,150
$ 478,446 $ 142,619 $ 193,677
Revenues are related to the Licensing Agreement dated November 1, 2016. The
onetime nonrefundable fee and the set up and training fees are being recognized
over the life of the agreement, which terminates on December 1, 2021.
For the three months ended March 31, 2021, operating expenses were $274,000 for
related party compensation expenses and $54,145 for general and administration
For the three months ended March 31, 2020, operating expenses were $125,000 for
related party compensation expenses and $11,874 for general and administration
For the three months ended March 31, 2021, and 2020, other expenses were $240
and $5,689 for interest on loans, respectively and $8,550 for finance cost of
note payable and $695 for amortization discount on convertible note,
For three months ended March 31, 2021 and 2020, other expenses were $142,150 and
$0 for loss on settlement of debt, respectively.
Liquidity and Capital Resources
The following table provides selected financial data about the Company as of
March 31, 2021 and December 31, 2020, respectively:
March 31, December 31,
Cash $ - $ 358
Current Assets $ 24,928 $ 358
Current Liabilities $ 257,849 $ 492,597
Working Capital (Deficiency) $ (257,849 ) $ (492,239 )
Three Months Ended
2021 2020 Changes ($)
Cash Flows used in Operating Activities $ (358 ) $ (13,774 ) $ 13,416
Cash Flows provided by Financing Activities $ - $ 13,774 $ (13,774 )
Net Change in Cash During Period
$ (358 ) $ - $ (358 )
Table of Contents
As of March 31, 2021, and December 31, 2020, our current assets were $24,928 and
$358, respectively, from solely cash.
As of March 31, 2021, our current liabilities and working capital deficiency
decreased as compared to December 31, 2020, primarily from settlement of domain
As of March 31, 2021, current liabilities consisted primarily of $164,478 to
promissory note payable, $12,450 due to related party, $79,215 to accounts
payable and accrued liabilities and $1,706 to deferred revenue.
As of December 31, 2020, our current liabilities consisted primarily of $350,000
to liabilities to be settled in stock, $90,240 to convertible notes, $21,849 to
loan payable, $12,450 due to related party, $14,713 to accounts payable and
During the three months ended March 31, 2021, net cash used in operating
activities was $358, compared to $13,774 for the three months ended March
The net cash used in operating activities for the three months ended March 31,
2021, was attributed to a net loss of $478,446, decreased by an accrued related
party compensation of $24,000 for officers' salary, loss of settlement of debts
of $142,150, stock issued for debt to related party of $250,000, of $7,928 and
decreased by a change in accounts payable and accrued liabilities of $54,027 and
increased by a change in deferred revenue of $639.
The net cash used in operating activities for the three months ended March
31,2020, was attributed to a net loss of $142,619, decreased by an accrued
related party compensation of $125,000, amortization of discount on convertible
note of $695, decreased by a change in accounts payable and accrued liabilities
of $3,789 and increased by a deferred revenue of $639.
The Company did not use any funds for investing activities during the three
months ended March 31, 2021, and 2020.
During the three months ended March 31, 2021, net cash provided by financing
activities was $0, compared to $13,774 for the three months ended March 31,
2020, from loans.
Off-Balance Sheet Arrangements
As of March 31, 2021, the Company had no material off-balance sheet arrangements
Critical Accounting Policies and Estimates
The preparation of financial statements and related disclosures in conformity
with U.S. generally accepted accounting principles and the Company's discussion
and analysis of its financial condition and operating results require the
Company's management to make judgments, assumptions and estimates that affect
the amounts reported. Management bases its estimates on historical experience
and on various other assumptions it believes to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities. Actual results may differ from
these estimates, and such differences may be material.
© Edgar Online, source Glimpses