Loop Media (LPTV) - 2019 Q4 - Annual Report

PART I - FINANCIAL INFORMATION Financial Statements The unaudited financial statements reveal a net loss, significant stockholders' deficit, and negative cash flow, raising substantial doubt about the company's ability to continue as a going concern Condensed Balance Sheets Balance Sheet Summary (as of September 30, 2019 vs. June 30, 2019) | Metric | September 30, 2019 (unaudited) | June 30, 2019 | | :--- | :--- | :--- | | Total Current Assets | $5,723 | $10,911 | | Total Assets | $6,316 | $11,769 | | Total Current Liabilities | $250,013 | $239,455 | | Total Liabilities | $250,013 | $239,455 | | Total Stockholders' Deficit | ($243,697) | ($227,686) | Condensed Statements of Operations Statement of Operations (Three months ended September 30) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | $11,282 | $10,576 | | Total Costs and Expenses | $23,216 | $29,691 | | Operating Loss | ($11,934) | ($19,115) | | Net Loss | ($16,011) | ($23,421) | | Net Loss Per Common Share | ($0.00) | ($0.00) | Condensed Statements of Cash Flows Cash Flow Summary (Three months ended September 30) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($548) | $11,899 | | Net Change in Cash | ($548) | $11,899 | | Cash at Beginning of Period | $4,845 | $11,494 | | Cash at End of Period | $4,297 | $23,393 | Notes to Financial Statements - The company's business provides services for overseas travel agents and tradeshows[28] - The company's accumulated deficit of $332,785 and reliance on financing raise substantial doubt about its ability to continue as a going concern[51] - As of September 30, 2019, the company had a $150,000 unsecured note payable bearing 10% interest per annum[58] - Two remaining convertible notes had their maturity dates extended to October 30, 2020[60][61][74] - Ongoing related-party transactions include a consulting agreement with a former officer at a rate of $3,000 per month, resulting in related-party professional fees of $9,000 for the quarter[72] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses operational challenges from funding shortages and the U.S.-China trade war, which raise going concern doubts - The company has been unable to secure necessary funds to fully implement its business plan, a situation exacerbated by the U.S.-China trade war, prompting a search for new business opportunities[77] Q3 2019 vs Q3 2018 Performance | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Revenues | $11,282 | $10,576 | | Operating Expenses | $23,216 | $29,691 | | Net Loss | ($16,011) | ($23,421) | - As of September 30, 2019, the company had a working capital deficit of $244,290, with current assets of $5,723 and current liabilities of $250,013[88] - The company estimates it needs a minimum of $250,000 in additional operating capital to continue operations for the next twelve months[93] - Management reiterates that the accumulated deficit of $332,785 and reliance on external financing raise substantial doubt about the company's ability to continue as a going concern[95] Quantitative and Qualitative Disclosures About Market Risk The company is exempt from market risk disclosures as it qualifies as a smaller reporting company - The company is not required to provide quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[97] Controls and Procedures Management concluded disclosure controls were ineffective due to material weaknesses in internal financial reporting controls - The CEO and CFO concluded that as of September 30, 2019, the company's disclosure controls and procedures were not effective due to material weaknesses[98] - Identified material weaknesses include inadequate segregation of duties and insufficient written accounting policies and procedures[99] - The company's remediation plan is dependent on securing additional financing to hire qualified personnel and implement necessary policies[101][102] PART II - OTHER INFORMATION Legal Proceedings The company reports that it is not a party to any pending legal proceedings - The company is not currently a party to any pending legal proceedings[107] Risk Factors The company refers to the risk factors included in its Annual Report on Form 10-K for 2019 - For information on risk factors, the report refers to the company's 2019 Annual Report on Form 10-K[108] Unregistered Sales of Equity Securities and Use of Proceeds The company issued 2,380,389 shares of common stock in a private placement during the quarter - In the three months ended September 30, 2019, the company issued 2,380,389 shares of common stock, reducing stock payable by $11,902[109] - The securities were issued in a private placement under Section 4(2) of the Securities Act and were acquired for investment purposes[110] Defaults Upon Senior Securities The company reports no defaults upon senior securities - There were no defaults upon senior securities[111] Mine Safety Disclosure This item is not applicable to the company - Mine safety disclosures are not applicable[111] Other Information The company reports no other information for this item - There is no other information to report[112] Exhibits This section lists the exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and XBRL data - The report includes CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and XBRL financial data (Exhibit 101) as exhibits[112]