Note 7 - Advertising Revenues

3 Months Ended

Mar. 31, 2016

Notes

Note 7 - Advertising Revenues

Note 7 – Advertising Revenues

In October 2014, the Company entered into an advertising agreement with a third party. Pursuant to the agreement, the Company agreed to provide advertising service to the third party from January 1, 2015 to December 31, 2015 for a monthly fee of approximately $38,300 (HK$300,000) with service from July to December 2015 free of charge. The Company received prepayment from the third party in 2014 and recorded deferred revenue of $232,028 at December 31, 2014. For the three months ended March 31, 2015, the Company recorded advertising revenue of approximately $58,000 (HK$450,000) related to this agreement.

In December 2015, the Company entered into a new advertising agreement with the third party. Pursuant to the agreement, the Company agreed to provide advertising service to the third party from January 1, 2016 to December 31, 2016 for approximately $270,000 (HK$ 2,100,000) with service from January to May 2016 free of charge. The Company received prepayment of approximately $270,000 (HK$ 2,100,000) from the third party in February 2016. For the three months ended March 31, 2016, the Company recorded advertising revenue of approximately $68,000 (HK$525,000) related to this agreement.  As of March 31, 2016, the Company had deferred revenue of $203,108 (HK$1,575,000).

All of the Company’s revenues are from one customer for the three months ended March 31, 2016 and 2015.