false
--12-31
Q3
2012
2012-09-30
10-Q
0001306035
Yes
Smaller Reporting Company
Asian Trends Media Holdings, Inc.
No
No
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249
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20006
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<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company was incorporated under the laws of the State of Delaware.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>At the beginning of 2010, The Company was principally engaged in operating liquid crystal display (“LCD”) flat-panel televisions and LCD billboards that advertise throughout Hong Kong and create revenue by selling advertising airtime. On August 31, 2010 the Company closed an Agreement for a Share Exchange with Global Mania Empire Management Limited (“GME”) to acquire 100% ownership of GME from its shareholders. GME is a Hong Kong company that specializes in project and artist management.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>On January 21, 2011, the Company entered into an Asset Sale, Purchase and Transfer Agreement (the "Sale Agreement") with the collective former shareholders of GME, namely Kwong Kwan Yin Roy, Dragon Billion International Limited, and Wong Wing Fung Charlie, each an individual resident of Hong Kong (collectively referred to as “Buyers").</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>According to the terms of the Sale Agreement, the Registrant sold its subsidiary Asian Trends Broadcasting Inc. (“ATBI”), a British Virgin Islands company and its subsidiaries GME, Great China Media Limited (“GCM”), a Hong Kong company, and Great China Game Limited (“GCG”), a Hong Kong company, to the Buyers. The consideration for the transaction shall consist of the return by the Buyers and surrender to the Registrant of a total of 22,147,810 shares of the Registrant’s common stock.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The project and artist management are reported as discontinued operations. The comparative amounts in consolidated statements of income and consolidated statements of cash flows that attributable to the discontinued operations are reclassified to conform to current year’s presentation.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company assigned the LCD flat-panel televisions and LCD billboards advertisement operations to Great China Media Limited (the “Assignee”), and in return the Assignee shall pay 5% of the gross proceeds from the business to the Company. Revenue is recognized<font style='display:none'> </font>in arrears on a quarterly basis and when collectability is reasonably assured. </p> <p style='margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE 2 – BASIS OF PRESENTATION</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The unaudited interim financial statements of the Company and the Company’s subsidiaries for the three months and nine months ended September 30, 2012 and 2011 have been prepared pursuant to the rules & regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations is the Hong Kong dollar (“HKD”), while the reporting currency is the US Dollar.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>In the opinion of the management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2012, results of operations and cash flows for the three months and nine months ended September 30, 2012 have been made. The results of operations for the nine months ended September 30, 2012 are not necessarily indicative of the operating results for the full year.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>(a) Economic and Political Risk</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company’s major operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company’s major operations in Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> (b) Cash and Cash Equivalents</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company considers all highly liquid investments purchased with original maturities of six months or less to be cash equivalents. The Company maintains bank accounts in Hong Kong through its wholly-owned subsidiary.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> (c) Fair Value of Financial Instruments</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The carrying amounts of financial instruments such as cash and accounts payable approximate their fair value because of the short maturities of these instruments. The fair value of receivables from associated companies and payables to associated companies are not practical to estimate based upon the related party nature of the underlying transactions.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> (d) Revenue Recognition</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>For continuing operations, the Company is principally engaged in operating LCD flat-panel televisions and LCD billboards that advertise throughout Hong Kong and create revenue by selling advertising airtime. On December 15, 2010, the Company assigned the operations to the assignee, and in return the assignee shall pay 5% of the gross proceeds from the business to the Company.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>Revenue is recognized in arrears on a quarterly basis and when collectability is reasonably assured.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>(e) Earnings Per Share</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of the balance sheet dates, there were no dilutive securities outstanding.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> (f) Foreign Currency Translation</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The accompanying condensed consolidated financial statements are presented in United States dollars. The functional currency of the Company is Hong Kong Dollar (“HK$”). Capital accounts of the consolidated financial statements are translated into United States dollars (“US$”) from Hong Kong dollars (“HK$”) at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate during the period. The translation rates are as follows:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="83%" style='width:83.82%;margin-left:-19.5pt'> <tr> <td width="69%" valign="bottom" style='width:69.52%;padding:0in 0in 1.4pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2012</p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011</p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2011</p> </td> </tr> <tr> <td width="69%" valign="bottom" style='width:69.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Period/year end HK$ : US$ exchange rate</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> </tr> <tr> <td width="69%" valign="bottom" style='width:69.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Average yearly HK$ : US$ exchange rate</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>(g) Recent Accounting Pronouncement</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company has adopted all recently issued accounting pronouncements. The adoption of these accounting pronouncements including those not yet in effect, is not anticipated to have a material effect on the financial statements of the Company.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE </b><b>4</b><b> – PROPERTY AND EQUIPMENT</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>Property, plant and equipment of the Company consist primarily of computer and display equipment owned and operated by the Company. Property, plant and equipment as of September 30, 2012 and December 31, 2011 are summarized as follows:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="88%" style='width:88.48%;margin-left:-33.0pt'> <tr> <td width="77%" valign="bottom" style='width:77.9%;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2012 (Unaudited)</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011 (Audited)</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.4%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>At cost:</p> </td> <td width="10%" valign="bottom" style='width:10.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.4%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Computer equipment</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$13,147</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Leasehold improvement</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>47,533</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Office equipment</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>30,133</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Furniture</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>11,632</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0in 0in 3.45pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Site display system</p> </td> <td width="10%" valign="bottom" style='width:10.7%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>10,640</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>113,085</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Less: Accumulated depreciation</p> </td> <td width="10%" valign="bottom" style='width:10.7%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(93,264)</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0in 0in 3.45pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Property, plant and equipment, net</p> </td> <td width="10%" valign="bottom" style='width:10.7%;border:none;border-bottom:double black 4.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:double black 4.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>19,821</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>Depreciation expenses for the nine months ended September 30, 2012 and 2011 were analyzed as follows:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.74%;margin-left:-29.25pt'> <tr> <td width="80%" valign="bottom" style='width:80.42%;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Nine months ended September 30, 2012</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Nine months ended September 30, 2011</p> </td> </tr> <tr> <td width="80%" valign="bottom" style='width:80.42%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Attributable to continuing operations</p> </td> <td width="9%" valign="bottom" style='width:9.78%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="9%" valign="bottom" style='width:9.78%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$9,834</p> </td> </tr> <tr> <td width="80%" valign="bottom" style='width:80.42%;background:white;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Attributable to discontinued operations</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr> <td width="80%" valign="bottom" style='width:80.42%;background:#CCEEFF;padding:0in 0in 3.45pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Depreciation</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$9,834</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE </b><b>5</b><b> – ADVANCE FROM SHAREHOLDERS</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The advances from shareholders are unsecured, interest free and have no fixed terms of repayment.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'><b>NOTE </b><b>6</b><b> – GOING CONCERN</b></p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying condensed consolidated financial statements, the Company has an accumulated deficit of $1,139,325 and a working capital deficit of $422,868.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. The Company intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'>(a) Economic and Political Risk</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company’s major operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company’s major operations in Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> (b) Cash and Cash Equivalents</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company considers all highly liquid investments purchased with original maturities of six months or less to be cash equivalents. The Company maintains bank accounts in Hong Kong through its wholly-owned subsidiary.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> (c) Fair Value of Financial Instruments</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The carrying amounts of financial instruments such as cash and accounts payable approximate their fair value because of the short maturities of these instruments. The fair value of receivables from associated companies and payables to associated companies are not practical to estimate based upon the related party nature of the underlying transactions.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> (d) Revenue Recognition</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>For continuing operations, the Company is principally engaged in operating LCD flat-panel televisions and LCD billboards that advertise throughout Hong Kong and create revenue by selling advertising airtime. On December 15, 2010, the Company assigned the operations to the assignee, and in return the assignee shall pay 5% of the gross proceeds from the business to the Company.</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>Revenue is recognized in arrears on a quarterly basis and when collectability is reasonably assured.</p>
<!--egx--> <p style='margin:0in;margin-bottom:.0001pt'>(e) Earnings Per Share</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of the balance sheet dates, there were no dilutive securities outstanding.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> (f) Foreign Currency Translation</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The accompanying condensed consolidated financial statements are presented in United States dollars. The functional currency of the Company is Hong Kong Dollar (“HK$”). Capital accounts of the consolidated financial statements are translated into United States dollars (“US$”) from Hong Kong dollars (“HK$”) at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate during the period. The translation rates are as follows:</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="83%" style='width:83.82%;margin-left:-19.5pt'> <tr> <td width="69%" valign="bottom" style='width:69.52%;padding:0in 0in 1.4pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2012</p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011</p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2011</p> </td> </tr> <tr> <td width="69%" valign="bottom" style='width:69.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Period/year end HK$ : US$ exchange rate</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> </tr> <tr> <td width="69%" valign="bottom" style='width:69.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Average yearly HK$ : US$ exchange rate</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt'> </p>
<!--egx--> <p style='margin:0in;margin-bottom:.0001pt'>(g) Recent Accounting Pronouncement</p> <p style='margin:0in;margin-bottom:.0001pt'> </p> <p style='margin:0in;margin-bottom:.0001pt'>The Company has adopted all recently issued accounting pronouncements. The adoption of these accounting pronouncements including those not yet in effect, is not anticipated to have a material effect on the financial statements of the Company.</p>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="83%" style='width:83.82%;margin-left:-19.5pt'> <tr> <td width="69%" valign="bottom" style='width:69.52%;padding:0in 0in 1.4pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2012</p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011</p> </td> <td width="10%" valign="bottom" style='width:10.16%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2011</p> </td> </tr> <tr> <td width="69%" valign="bottom" style='width:69.52%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Period/year end HK$ : US$ exchange rate</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> </tr> <tr> <td width="69%" valign="bottom" style='width:69.52%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Average yearly HK$ : US$ exchange rate</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> <td width="10%" valign="bottom" style='width:10.16%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.1282</p> </td> </tr> </table> </div>
<!--egx--><div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="88%" style='width:88.48%;margin-left:-33.0pt'> <tr> <td width="77%" valign="bottom" style='width:77.9%;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>September 30, 2012 (Unaudited)</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>December 31, 2011 (Audited)</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.4%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>At cost:</p> </td> <td width="10%" valign="bottom" style='width:10.7%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="11%" valign="bottom" style='width:11.4%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Computer equipment</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$13,147</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Leasehold improvement</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>47,533</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Office equipment</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>30,133</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Furniture</p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>11,632</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0in 0in 3.45pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Site display system</p> </td> <td width="10%" valign="bottom" style='width:10.7%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>10,640</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="10%" valign="bottom" style='width:10.7%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>113,085</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:#CCEEFF;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Less: Accumulated depreciation</p> </td> <td width="10%" valign="bottom" style='width:10.7%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>(93,264)</p> </td> </tr> <tr> <td width="77%" valign="bottom" style='width:77.9%;background:white;padding:0in 0in 3.45pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Property, plant and equipment, net</p> </td> <td width="10%" valign="bottom" style='width:10.7%;border:none;border-bottom:double black 4.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="11%" valign="bottom" style='width:11.4%;border:none;border-bottom:double black 4.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>19,821</p> </td> </tr> </table> </div>
<!--egx--><p style='margin:0in;margin-bottom:.0001pt'> </p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="85%" style='width:85.74%;margin-left:-29.25pt'> <tr> <td width="80%" valign="bottom" style='width:80.42%;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Nine months ended September 30, 2012</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Nine months ended September 30, 2011</p> </td> </tr> <tr> <td width="80%" valign="bottom" style='width:80.42%;background:#CCEEFF;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Attributable to continuing operations</p> </td> <td width="9%" valign="bottom" style='width:9.78%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="9%" valign="bottom" style='width:9.78%;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$9,834</p> </td> </tr> <tr> <td width="80%" valign="bottom" style='width:80.42%;background:white;padding:0in 0in 1.7pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Attributable to discontinued operations</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr> <td width="80%" valign="bottom" style='width:80.42%;background:#CCEEFF;padding:0in 0in 3.45pt 0in'> <p style='margin:0in;margin-bottom:.0001pt'>Depreciation</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="9%" valign="bottom" style='width:9.78%;border:none;border-bottom:double black 4.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$9,834</p> </td> </tr> </table> </div>
1.0000
22147810
The Company assigned the LCD flat-panel televisions and LCD billboards advertisement operations to Great China Media Limited (the “Assignee”), and in return the Assignee shall pay 5% of the gross proceeds from the business to the Company. Revenue is recognized in arrears on a quarterly basis and when collectability is reasonably assured.
0.1282
0.1282
0.1282
0.1282
0.1282
0.1282
13147
47533
30133
11632
10640
113085
-93264
19821
9834
9834
-1139325
-422868
0001306035
2012-07-01
2012-09-30
0001306035
2012-09-30
0001306035
2011-12-31
0001306035
2011-07-01
2011-09-30
0001306035
2012-01-01
2012-09-30
0001306035
2011-01-01
2011-09-30
0001306035
2011-09-30
0001306035
2010-12-31
0001306035
2010-08-31
pure
iso4217:USD
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