10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark one)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Year Ended June 30, 2019

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________

Commission File Number: 000-53049

 

ALMOST NEVER FILMS INC.

(Exact name of registrant as specified in its charter)

Nevada	26-1665960
(State or Other Jurisdiction	(I.R.S. Employer
of Incorporation or Organization)	Identification No.)
8605 Santa Monica Blvd #98258, West Hollywood, CA	90069-4109
(Address of principal executive offices)	(Zip Code)

(213) 296-3005

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of the “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨		Accelerated filer	¨
Non-accelerated filer	¨	(Do not check if a smaller reporting company)	Smaller reporting company	x
			Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of shares of registrant’s common stock outstanding as of October 14, 2019 was 5,798,765.

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS		3
PART I
ITEM 1.	DESCRIPTION OF BUSINESS	4
ITEM 1A.	RISK FACTORS	9
ITEM 2.	DESCRIPTION OF PROPERTY	9
ITEM 3.	LEGAL PROCEEDINGS	9
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	9
PART II
ITEM 5.	MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES	10
ITEM 6.	SELECTED FINANCIAL DATA	11
ITEM 7.	MANAGEMENT S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION	11
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	13
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA	14
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	26
ITEM 9A.	CONTROLS AND PROCEDURES	26
ITEM 9B.	OTHER INFORMATION	26
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT	27
ITEM 11.	EXECUTIVE COMPENSATION	28
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	29
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	29
ITEM 14.	EXHIBITS	30
ITEM 15.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	31
SIGNATURES		32

2

FORWARD-LOOKING STATEMENTS

This Annual Report contains forward-looking statements, including, without limitation, in the sections captioned “Description of Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere. Any and all statements contained in this Report that are not statements of historical fact may be deemed forward-looking statements. Terms such as “may,” “might,” “would,” “should,” “could,” “project,” “estimate,” “pro forma,” “predict,” “potential,” “strategy,” “anticipate,” “attempt,” “develop,” “plan,” “help,” “believe,” “continue,” “intend,” “expect,” “future,” and terms of similar import (including the negative of any of the foregoing) may be intended to identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this Report may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to exploration programs, (ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii) our future financial performance, including any such statement contained in a discussion and analysis of financial condition by management or in the results of operations included pursuant to the rules and regulations of the SEC, and (iv) the assumptions underlying or relating to any statement described in points (i), (ii) or (iii) above.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon our current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which we have no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward- looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, our inability to obtain adequate financing, insufficient cash flows and resulting illiquidity, our inability to expand our business, government regulations, lack of diversification, volatility in the price of gold, increased competition, results of arbitration and litigation, stock volatility and illiquidity, and our failure to implement our business plans or strategies.

Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them. We disclaim any obligation to update the forward-looking statements contained in this Report to reflect any new information or future events or circumstances or otherwise.

Readers should read this Report in conjunction with our financial statements and the related notes thereto in this Report, and other documents which we may file from time to time with the SEC.

3

PART I

ITEM 1. DESCRIPTION OF BUSINESS.

This Report contains summaries of the material terms of various agreements executed in connection with the transactions described herein. The summaries of these agreements are subject to, and are qualified in their entirety by reference to, these agreements, all of which are incorporated herein by reference.

Business Development

Almost Never Films Inc. (the “Company”) was originally incorporated in Nevada in October 2007 as Smack Sportswear (“Smack”), which originally manufactured and sold performance and lifestyle based indoor and sand volleyball apparel and accessories. The Company is now an independent film company focused on film production and production related services in connection with genre specific motion pictures with production costs in the $5.0 million to $50.0 million range.

On January 15, 2016, pursuant to the share exchange agreement, among Almost Never Films Inc. f/k/a Smack Sportswear (the “Company”, “we,” “our” or “us”), Almost Never Films Inc. (“ANF”), an Indiana corporation, and the two shareholders of ANF (the “ANF Shareholders”), we issued to the ANF Shareholders, 1,000,000 shares of our Series A Convertible Preferred Stock (the “Series A Preferred Stock”), par value $0.001 per share in exchange for all 100,000,000 shares of the issued and outstanding common stock of ANF (the “Share Exchange”). As a result of the Share Exchange, ANF became our wholly-owned subsidiary, and our business has become the business of ANF, effective on January 15, 2016.

The share exchange was accounted for as a "reverse acquisition," and resulted in a recapitalization. Almost Never Films Inc. (Indiana) is deemed to be the acquirer for accounting purposes. The assets acquired and liabilities assumed were $6,566 and $598,869, respectively. Consequently, the assets and liabilities and the historical operations that will be reflected in the financial statements prior to the share exchange will be those of Almost Never Films Inc. (Indiana) and will be recorded at the historical cost basis of Almost Never Films Inc. (Indiana), and the combined financial statements after completion of the share exchange include the assets and liabilities of Almost Never Films Inc. (Indiana), historical operations of Almost Never Films Inc. (Indiana), and operations of Almost Never Films Inc. (Indiana) from the closing date of the share exchange. As a result of the issuance of the shares of our Series A Convertible Preferred Stock pursuant to the share exchange, a change in control of the Company occurred as of the date of consummation of the share exchange. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization. The Company has not yet generated any revenue since the reverse acquisition.

On February 29, 2016, the stockholders of Smack voted to amend the Articles of Incorporation of the Company to (i) increase the authorized capital of the Company to 200,000,00 shares of common stock and (ii) to change the name of the Company to “Almost Never Films Inc.” which took effect on March 2, 2017.

The Company has 5,000,000 authorized preferred shares with no par value.

Smack issued 1,000,000 shares of our Series A Convertible Preferred Stock to the Mr. Chan and Mr. Williams in exchange for all 100,000,000 shares of issued and outstanding common stock of Almost Never Films Inc. (Indiana), with a value of $10,000.

On March 4, 2016, all 1,000,000 preferred shares were converted into 100,000,000 common shares.

There were no shares of preferred stock issued and outstanding as of June 30, 2019.

On March 8, 2016, the Company executed a Stock Purchase Agreement with a shareholder. Pursuant to the Stock Purchase Agreement, the Company sold, and said shareholder purchased, an aggregate of 49,720,000 shares of the Company’s Common Stock at a price of $0.005 per share in exchange for the cancellation of and discharge of certain promissory notes issued by the Company and payable to said shareholder. The foregoing issuance was deemed to be exempt from registration under Section 4(a)(2) of the Securities Act as not involving any public offering and/or Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws.

In March through November 2016, the Company entered into four share purchase agreements with four investors for 12,500,000 common shares at $0.02 per share for total proceeds of $250,000.

On November 16, 2016, the company entered into a collaboration agreement (the “KBM Agreement”) with Konwiser Brothers Media (“KBM”, and together with ANF, the “Parties). Pursuant to the Agreement, the Parties will create an LLC or other entity (the “Company”), for the purpose of developing, producing and exploiting proposed motion picture project currently entitled “Field Trip” (the “Picture”). KBM will contribute its development and producing services to the Company and all rights to the Screenplay, and ANF will make financial contributions, assist in the raising of additional financing and participate in the development and production process as set forth more fully herein. The Company will own 100% of the copyright to the Picture and all other ancillary and related rights, and each of KBM and ANF will own an undivided 50% interest in the Company. KBM will be the managing member of the Company. The operating agreement for the Company will be consistent with the terms of this Agreement. This transaction, and the ones mentioned below, removed the Company from its prior shell status. On September 27, 2017, KBM informed the Company of its intent to terminate the KBM Agreement.

On December 1, 2016, the Company filed a registration statement on Form S-1, registering 10,000,000 shares for certain selling shareholders. The Form S-1 was declared effective on December 9, 2016.

4

On December 12, 2016, the Company entered into a collaboration agreement (the “SAE Agreement”) with Saisam Entertainment, LLC (“SAE”, and together with the Company, the “Parties). Pursuant to the Agreement, the Parties will create an LLC or other entity (the “Company”), for the purpose of developing, producing and exploiting proposed motion picture project currently entitled “Love is not Easy” (the “Picture”). The Company owns and controls the rights to the screenplay for the Picture.

On June 6, 2017, the Company issued a 2.5% promissory note (the “ANF Note”) to Weirong Zhang (the “Investor”). Pursuant to the ANF Note, the Company received $200,000, which is due to the Lender ninety (90) days from the date the purchase price of $200,000 was paid. The ANF Note accrues interest at 2.5% per 90 days. Thereafter, on June 7, 2017, The Money Pool, LLC (“Money Pool”) issued a non-transferable promissory note to the Company for $200,000 (the “Money Pool Note”). The Company funded the Money Pool Note with the funds received from the Investor. Money Pool shall use the funds from the Money Pool Note, along with its own funds, in order to provide a bridge loan to Blue Rider San Juan, LLC (“Blue Rider”), in connection with the production of a motion picture known as “Speed Kills”. Blue Rider is the international sales agent for “Speed Kills.” The Money Pool Notes accrues interest of a flat 2.5% for the first 45 days from funding. In the event the Money Pool Note is not paid in full within 45 days, the flat interest rate will increase to 3.5% for each 45-day period any balance or accrued interest remains unpaid. The principal and interest shall be payable by Money Pool to the Company from payments made by Blue Rider on the bridge loan provided by Money Pool. On June 9, 2017, the Company issued a 2.5% promissory note (the “Kruse Note”) to William R. Kruse (the “Kruse”). Pursuant to the Kruse Note, the Company received $200,000, which is due to Kruse ninety (90) days from the date the purchase price of $200,000 was paid. The Kruse Note accrues interest at 2.5% per annum. Thereafter, on June 12, 2017, Money Pool issued a non-transferable promissory note to the Company for $200,000 (the “Pool Note”). The Company shall fund the Pool Note with the funds received from Kruse. Money Pool shall use the funds from the Pool Note, along with its own funds, in order to provide a bridge loan to Blue Rider, in connection with the production of a motion picture known as “Ana”. Blue Rider is the international sales agent for “Ana.” The Pool Notes accrues interest of a flat 2.5% for the first 45 days from funding. In the event the Pool Note is not paid in full within 45 days, the flat interest rate will increase to 3.5% for each 45-day period any balance or accrued interest remains unpaid. The principal and interest shall be payable by Money Pool to the Company from payments made by Blue Rider on the bridge loan provided by Money Pool.

On August 2, 2017, Derek Williams presented the Board of Directors of the Company with his resignation as Chief Operating Officer and a member of the Board of Directors of the Company. Mr. William’s decision to resign was not due to any disagreement with the Company.

On August 24, 2017, the Board of Directors of the Company appointed Daniel Roth as Chief Creative Officer of the Corporation and Damiano Tucci as Chief Operating Officer of the Corporation.

On September 13, 2017, the Company completed a 1 for 40 reverse stock split and changed the authorized capital of the Company to 25,000,000 shares of common stock, par value $.001 per share.

On November 10, 2017 the Company executed a First Amendment Agreement to its 6x picture Production and Distribution Agreement between Big Film Factory LLC (“Big Film” or “Prodco”) and Pure Flix Entertainment LLC (“PFE”), (the “Agreement”). The Agreement memorializes the understanding with respect to the development, packaging, production, post-production and worldwide distribution of the films intended for initial and primary worldwide exhibition. The Company, a Nevada corporation, will be added as a party to the initial agreement by and between Big Film and PFE, wherever Big Film is referenced in connection with providing production services in conjunction with Big Film as well as providing production capital and cash following each of the first six (6) films produced under the Agreement (“6 Pictures”). Both Prodco and PFE agree to expand the defined role of “Prodco” in the Agreement, to add the Company to that definition, and grant the Company equally the same role and responsibilities heretofore only held by Big Film in connection with the 6 Pictures.

The Company will be accorded a company credit and producer credits equal to those of Big Film. Furthermore, Prodco will provide the Company, Big Film and PFE with Producer’s E & O Insurance for a term of not less than three (3) years from delivery of any such Picture to PFE, and with limits of $1 million/$3 million/ $25K SIR as are common to the television/SVOD industry.

On April 26, 2018, the Company filed a registration statement on Form S-1, registering 514,822 shares for certain selling shareholders. The Form S-1 was declared effective on May 10, 2018.

On May 23, 2018 the Company executed a Co-Production Agreement with The Media Farm (‘TMF”) with reference to the financing, development, production , and exploitation of up to two (2) feature Length motion picture (each and collectively “Picture(s)”) and TMF’s television series, “The Chair” (“Series”).

On June 19, 2018 the Company executed a Production Services Agreement with MVE Productions, LLC (“MVE”) with respect to production services to be performed by Almost Never Films, Inc for the MVE in connection with the motion picture tentatively titled “Country Christmas Album”.

On October 18, 2018, Damiano Tucci presented the Board of Directors of the Company with his resignation as Chief Operating Officer of the Company. Mr. Tucci’s decision to resign was not due to any disagreement with the Company. On October 18, 2018, the Board of Directors of the Company accepted Mr. Tucci’s resignation. Accordingly, Damiano Tucci ceased to be the Company’s Chief Operating Officer. Daniel Roth, the Company’s current Chief Creative Officer, accepted the additional position of Chief Operating Officer.

5

Share Exchange and Recapitalization

On January 15, 2016, Smack entered into a share exchange agreement with Almost Never Films Inc., a private company incorporated in Indiana on July 8, 2015, and its two shareholders, Danny Chan and Derek Williams.

Pursuant to the agreement, Smack issued 1,000,000 shares of our Series A Convertible Preferred Stock to Mr. Chan and Mr. Williams in exchange for all 100,000,000 shares of issued and outstanding common stock of Almost Never Films Inc. (Indiana). As a result of the share exchange, Almost Never Films Inc. (Indiana) became Smack’s wholly-owned subsidiary, and Mr. Chan and Mr. Williams acquired a controlling interest in the Company.

The share exchange was accounted for as a "reverse acquisition," and resulted in a recapitalization. Almost Never Films Inc. (Indiana) was deemed to be the acquirer for accounting purposes. The assets acquired and liabilities assumed were $6,566 and $598,869, respectively. Consequently, the assets and liabilities and the historical operations that would be reflected in the financial statements prior to the share exchange would be those of Almost Never Films Inc. (Indiana) and would be recorded at the historical cost basis of Almost Never Films Inc. (Indiana), and the combined financial statements after completion of the share exchange included the assets and liabilities of Almost Never Films Inc. (Indiana), historical operations of Almost Never Films Inc. (Indiana), and operations of Almost Never Films Inc. (Indiana) from the closing date of the share exchange. As a result of the issuance of the shares of our Series A Convertible Preferred Stock pursuant to the share exchange, a change in control of the Company occurred as of the date of consummation of the share exchange. All share and per share information in the accompanying consolidated financial statements and footnotes have been retroactively restated to reflect the recapitalization

On February 29, 2016, the stockholders of Smack voted to amend the Articles of Incorporation of the Company to (i) increase the authorized capital of the Company to 200,000,00 shares of common stock and (ii) to change the name of the Company to “Almost Never Films Inc.” which took effect on March 2, 2017.

On September 13, 2017, the Company completed a 1 for 40 reverse stock split and changed the authorized capital of the Company to 25,000,000 shares of common stock, par value $.001 per share.

We continue to be a "smaller reporting company," as defined under the Exchange Act, following the Share Exchange.

History

As described above, we were incorporated in Nevada in October 2007 under the name SMACK Sportswear under which we manufactured and sold performance and lifestyle based indoor and sand volleyball apparel and accessories. As a result of the sale of certain inventory from the Company to Mr. Sigler in July 2015, the Company became a “shell company” (as such term is defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended). As a result of the Share Exchange, we acquired the proposed business of Almost Never.

Almost Never, our wholly-owned subsidiary upon the closing of Share Exchange, was incorporated in the State of Indiana on July 8, 2015. As a result of the Share Exchange, the Company amended its Articles of Incorporation to change its name from “Smack Sportswear” to “Almost Never Films Inc.” to more accurately reflect its new business. We also requested a change to the Company’s trading symbol to "HLWD"

We currently have authorized 30,000,000 shares of capital stock, consisting of (i) 25,000,000 shares of Common Stock, and (ii) 5,000,000 shares designated as preferred stock containing such rights, privileges and designations as our Board of directors may, from time to time, determine. As of the date of this Report, an aggregate of 5,798,765 shares of our Common Stock and no shares of our Series A Convertible Preferred Stock are issued and outstanding.

On March 4, 2017, all previously authorized 1,000,000 preferred shares were converted into 2,500,000 common shares. In March through November 2017, the Company entered into four share purchase agreements with three investors for 312,500 common shares at $0.08 per share for total proceeds of $250,000

On March 8, 2017, the Company executed a Stock Purchase Agreement with a shareholder. Pursuant to the Stock Purchase Agreement, the Company sold, and said shareholder purchased, an aggregate of 1,243,000 shares of the Company’s Common Stock at a price of $0.005 per share in exchange for the cancellation of and discharge of certain promissory notes issued by the Company and payable to said shareholder. The foregoing issuance was deemed to be exempt from registration under Section 4(a)(2) of the Securities Act as not involving any public offering and/or Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws.

On September 13, 2017, the Company completed a 1 for 40 reverse stock split and changed the authorized capital of the Company to 25,000,000 shares of common stock, par value $.001 per share.

Our principal executive office is located at 8605 Santa Monica Blvd #98258, West Hollywood, California 90069-4109.

6

Our Business

We are an independent film company focused on film production and production related services in connection with genre specific motion pictures with production costs in the $5.0 million to $50.0 million range.

Our proposed business is to facilitate relationships (and as such, provide production related services) between creative talent (including writers, actors and directors) and companies who produce, finance and distribute motion pictures. We intend to acquire or license rights to materials upon which we believe motion pictures can be based (screenplays, books, short stories etcetera, which are referred to within the entertainment industry as the “underlying property”). We may further develop an underlying property by contracting for additional writing services and/or by bringing in new writers to perform “polishes” or “rewrites” on a particular underlying property.

If we are satisfied with the creative state of the underlying property, we then intend to make offers to directors and/or actors, to perform services in connection with a particular motion picture based on that underlying property. These offers are very often contingent and subject to the satisfaction of certain production elements, such as financier approval of the screenplay and the financier’s selection of a start date for principal photography.

If a director or actors accepts one of our offers, the director or actors are said to be “attached” to the motion picture project. Armed with the underlying property and the attached creative element(s) (these elements are often called the “package” in Hollywood), we may then approach third party financiers seeking financing as well as distribution for the potential motion picture. Another approach that we may take is to contact the financiers first, seeking first to produce the film, and then with a finished (or nearly finished) motion picture product, obtain distribution for the picture.

Motion Picture Property Acquisition Process

Our acquisition process is the process by which we intend to acquire or license “underlying properties”. In turn, we expect to use those properties to attract creative talent (including writers, actors and directors) to the potential motion picture project. If successful, we will then grant or license out those rights to third party financiers of motion pictures, who will then contract with the creative talent we have attracted to the property as well as finance, produce and distribute/exploit the motion picture.

Almost Never Feature Film Production

Our initial primary involvement with feature film production is in the area of the development of “underlying properties”. We intend to engage third parties to produce, finance and exploit/distribute the motion picture “packages” we put together. We may also provide production expertise (i.e. “production services”) to the third-party producer and/or financier of the motion picture in question. If we do provide production expertise, we, or members of our executive team, Danny Chan and Daniel Roth, may be credited as “producers” or “executive producers” of the particular film in question. We expect to primarily derive our income from producer fees, consulting and service fees as well as our participation in the profits of the various pictures produced by third parties, that were developed and/or “packaged” by us.

Our feature film strategy generally is to perform production services, develop and/or produce feature films when the production budgets for the films are expected to be entirely or substantially covered by a third party. In this way, we believe our risk is, by in large, only the capital required, if any, to develop and package the motion picture project. The entirety of the production budget, as well as any costs associated with distributing and/or exploiting the motion pictures in question, will be expected to be borne by a third party or parties who have the resources and expertise to produce and/or distribute motion pictures.

Distributing Almost Never Motion Pictures

Currently, we do not intend to directly distribute motion pictures. Instead, when we seek financing for our motion picture “packages,” the distribution rights are often obtained by the financier as collateral for their investment; in other words, third parties purchase the world-wide exploitation and distribution rights to a motion picture for the cost it takes to produce the motion picture.

Foreign Markets

In general, a very important portion of the financing for “independent” (i.e., not produced by a major studio or one of their subsidiaries) motion pictures comes from the “foreign markets” (i.e., those markets outside of the United States and English-speaking Canada). With respect to productions we are associated with, the third-party financier owns and/or controls the production rights and uses these rights as collateral or purchases the rights outright in connection with the funding of the pictures we develop.

Profit Participation

Our profit participation in motion picture projects will be determined by a calculation that assumes that all “negative costs” (production costs) of the picture (including, but not limited to, costs for development, principal photography and post-production) and “distribution expenses” (including, but not limited to, costs for marketing the film at various international film markets as well as costs associated with the delivery of the film and the physical elements to the various licensees of the film) are recovered by the financier plus interest thereon. After repayment of all negative costs, distribution expenses and interest thereon, the financier/distributor will charge a “distribution fee” (often a percentage of the gross income) for performing any sales or distribution services in connection with the picture. Following the payment of distribution fees and other costs, any amounts payable to creative elements that are contingent compensation (including, but not limited to, deferred compensation and bonuses) are paid to those third parties. Any money remaining is considered net profits from which profit participation is derived.

7

Competition

The motion picture industry is intensely competitive. In addition to competing with the major film studios that dominate the motion picture industry, we will also compete with numerous independent motion picture production companies, television networks, pay television systems, and online streaming media companies such as Netflix, Hulu, and Amazon Prime. Virtually all of our competitors who are significantly larger than we are have been in business much longer than we have, and have significantly more resources at their disposal. Our competitors range from small independent producers to well financed established film studios, particularly, major U.S. film studios.

Intellectual Property

We believe that intellectual property will be material to our business and we will expend cost and effort in an attempt to develop and protect our intellectual property and to maintain compliance vis-à-vis other parties' intellectual property. Our ability to protect and enforce our intellectual property rights is subject to certain risks. Enforcement of intellectual property rights is costly and time consuming.

From time to time, we may encounter disputes over rights and obligations concerning intellectual property. We cannot offer any assurances that we will prevail in any intellectual property dispute.

Industry Background

The Feature Film Industry. The feature film industry encompasses the development, production and exhibition of feature-length motion pictures and their subsequent distribution in the online, DVD, television, video on demand and other ancillary markets. The major studios dominate the industry, some of which have divisions that are promoted as "independent" distributors of motion pictures, including Universal Pictures, Warner Bros Entertainment (also known as Warner Bros. Studios, Inc., Warner Bros. Pictures, Inc. commonly called Warner Bros., or simply WB) including subsidiaries New Line Cinema and Castle Rock Entertainment & DC Entertainment, Twentieth Century Fox, Sony Pictures Entertainment (including Columbia Pictures and Tristar Pictures), Paramount Pictures, Walt Disney Studios, MGM Holdings and Lions Gate Entertainment. In recent years, however, true "independent" motion picture production and distribution companies have played an important role in the production of motion pictures for the worldwide feature film market.

Independent Feature Film Production and Financing. Generally, independent production companies do not have access to the extensive capital required to make big budget motion pictures, such as the "blockbuster" product produced by the major studios. They also do not have the capital necessary to maintain the substantial overhead that is typical of such studios' operations. Independent producers target their product at specialized markets and usually produce motion pictures with budgets of less than $25 million. Generally, independent producers do not maintain significant infrastructure. They instead hire only creative and other production personnel and retain the other elements required for development, pre-production, principal photography and post-production activities on a project-by-project basis. Also, independent production companies typically finance their production activities from bank loans, pre-sales, equity offerings, co-productions and joint ventures rather than out of operating cash flow. They generally complete financing of an independent motion picture prior to commencement of principal photography to minimize risk of loss.

Independent Feature Film Distribution. Motion picture distribution encompasses the exploitation of motion pictures in theatres and in markets, such as the DVD, pay-per-view, pay television, free television and ancillary markets, such as hotels, airlines and streaming films on the Internet. Independent producers do not typically have distribution capabilities and rely instead on pre-sales to North American and international distributors. Generally, the local distributor will acquire distribution rights for a motion picture in one or more of the aforementioned distribution channels from an independent producer. The local distributor will agree to advance the producer a non-refundable minimum guarantee. The local distributor will then generally receive a distribution fee of between 20% and 35% of receipts, while the producer will receive a portion of gross receipts in excess of the distribution fees, distribution expenses and monies retained by exhibitors. The local distributor and theatrical exhibitor generally will enter into an arrangement providing for the exhibitor's payment to the distributor of a percentage (generally 40% to 50%) of the box-office receipts for the exhibition period, depending upon the success of the motion picture.

Government Regulation

The Company is not currently subject to any direct government regulations, other than the securities laws and the regulations thereunder applicable to all publicly owned companies and laws and regulations applicable to general businesses. It is possible that certain laws and regulations may be adopted at the local, state, national and international level that could affect the Company's operations. Changes to such laws could create uncertainty in the marketplace which could reduce demand for the Company's products or increase the cost of doing business as a result of costs of litigation or a variety of other such costs, or could in some other manner have a material adverse effect on the Company's business, financial condition, results of operations and prospects. If any such law or regulation is adopted it could limit the Company's ability to operate and could force the business operations to cease, which would have a significantly negative effect on the Company.

8

Employees

The Company currently has no employees. Danny Chan, our Chief Executive Officer and Chief Financial Officer, and Daniel Roth our Chief Creative Officer and Chief Operating Officer, are operating the Company.

ITEM 1A. RISK FACTORS

Smaller reporting companies are not required to provide the information required by this Item 1A.

ITEM 1B. Unresolved Staff Comments

None

ITEM 2. DESCRIPTION OF PROPERTY.

The Company does not have a principal office, but maintains a mailing address at

8605 SANTA MONICA BLVD #98258

WEST HOLLYWOOD, CA 90069-4109.

ITEM 3. LEGAL PROCEEDINGS.

We know of no existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

9

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES.

Our common stock is quoted on the Financial Industry Regulatory Authority’s OTC Bulletin Board under the symbol “HLWD”. The following quotations obtained from Yahoo! Finance reflect the highs and low bids for our common stock based on inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

The high and low bid prices of our common stock for the previous two fiscal years are as follows:

Quarter Ended	High		Low
30-Jun-19	$	1	$	0.37
31-Mar-19	$	2.51	$	0.4
31-Dec-18	$	1.08	$	0.4
30-Sep-18	$	0.6	$	0.6
30-Jun-18	$	1.53	$	0.8
31-Mar-18	$	1.65	$	1.2
31-Dec-17	$	1.75	$	0.9
30-Sep-17	$	2.8	$	1.2

Transfer Agent

Our transfer agent for our common stock is Empire Stock Transfer, Inc. They are located at 1859 Whitney Mesa Drive, Henderson NV 89014. Tel: 702 818-5898 Fax: 702 974-1444.

Holders of Common Stock

As of October 14, 2019, we have approximately 87 registered shareholders holding 5,798,765 shares of our common stock.

Dividends

We have not declared any dividends since incorporation and do not anticipate that we will do so in the foreseeable future. Our directors will determine if and when dividends should be declared and paid in the future based on our financial position at the relevant time. All shares of our common stock are entitled to an equal share of any dividends declared and paid.

Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities

None.

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ITEM 6. SELECTED FINANCIAL DATA.

As a smaller reporting company, we are not required to provide the information required by this Item.

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following management's discussion and analysis should be read in conjunction with the historical financial statements and the related notes thereto contained in the exhibits to this Report. The management's discussion and analysis contains forward-looking statements, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and the like, and/or future tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including those under "Risk Factors" commencing on page 17 above, that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. The Company's actual results and plans could differ materially from those anticipated in these forward-looking statements as a result of several factors, some of which cannot be anticipated or predicted. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Report.

As a result of the Share Exchange and the change in business and operations of the Company, a discussion of the past financial results of the Company is not pertinent, and under applicable accounting principles the historical financial results of Almost Never, the accounting acquirer, prior to the Share Exchange are considered the historical financial results of the Company.

Upon the completion of the Share Exchange, Almost Never became a wholly-owned subsidiary of the Company. All references to "Almost Never" shall mean and refer to Almost Never prior to the Share Exchange and to the Company as well as to the business of Almost Never (constituting our only business) after the Share Exchange as required by the context.

The following discussion highlights Almost Never's results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the periods described, and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on Almost Never's audited and unaudited financial statements supplied as exhibits to this Report, which we have prepared in accordance with United States generally accepted accounting principles. You should read the discussion and analysis together with such financial statements and the related notes thereto.

Basis of Presentation

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and the accompanying notes thereto included in Item 8 of Part II, “Financial Statements and Supplementary Data” of this Form 10-K Report. In the opinion of management, all material adjustments necessary to present fairly the results of operations for such periods have been included in these audited financial statements. All such adjustments are of a normal recurring nature.

Overview

Upon the consummation of the transactions contemplated by the Exchange Agreement, on January 15, 2017, we issued 1,000,000 shares of our Series A Convertible Preferred Stock to the Almost Never Shareholders in exchange for all 100,000,000 shares of issued and outstanding common stock of Almost Never. As a result of the Exchange Agreement, Almost Never became our wholly-owned subsidiary, and the two Almost Never Shareholders have voting power equal to approximately 80% of the voting power of the Company.

Almost Never Films Inc. was founded as an Indiana corporation in July 2015. Activities since inception, through October 31, 2015, were devoted primarily to business development that included meetings with producers, actors, directors and screenwriters in the film industry to explore various partnerships and other collaborations. Development consists of meeting with screenwriters, producers, directors, talent agencies, and other motion picture industry executives.

As part of Share Exchange, Doug Samuelson, our sole officer, resigned from all his positions with the Company and Danny Chan was elected as our Chief Executive Officer, Chief Financial Officer and a director on our Board, and Derek Williams was elected as our Chief Operating Officer. Mr. Chan and Mr. Williams held the same executive office positions at Almost Never prior to the Share Exchange. Effectively ten (10) days after the filing and distribution of an Information Statement on Schedule 14f-1, Mr. Williams became a director on our Board and Doug Samuelson, a former director, resigned.

On August 2, 2017, Derek Williams presented the Board of Directors of the Company with his resignation as Chief Operating Officer and a member of the Board of Directors of the Company. Mr. William’s decision to resign was not due to any disagreement with the Company.

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On August 24, 2017, the Board of Directors of the Company appointed Daniel Roth as Chief Creative Officer of the Corporation and Damiano Tucci as Chief Operating Officer of the Corporation.

On September 13, 2017, the Company completed a 1 for 40 reverse stock split and changed the authorized capital of the Company to 25,000,000 shares of common stock, par value $.001 per share.

On October 18, 2018, Damiano Tucci presented the Board of Directors of the Company with his resignation as Chief Operating Officer of the Company. Mr. Tucci’s decision to resign was not due to any disagreement with the Company. On October 18, 2018, the Board of Directors of the Company accepted Mr. Tucci’s resignation. Accordingly, Damiano Tucci ceased to be the Company’s Chief Operating Officer. Daniel Roth, the Company’s current Chief Creative Officer, accepted the additional position of Chief Operating Officer.

Results of Operations for the year ended June 30, 2019 and the year ended June 30, 2018

Revenue and Cost of Revenue

For the year ended June 30, 2019, the Company generated $2,526,346 in revenue. For the year ended June 30, 2018, the Company generated $10,000 revenue. Revenue increased due to the completion of two independent self-produced films which generated a total of $700,000 of revenue, and the completion of two films completed under Production Service Agreements which generated a total of $1,778,346. In addition, the Company recorded $48,000 of revenue associated with producer fees.

Cost of revenues was $2,483,448 compared to $0 for the year ended June 30, 2019, and 2018, respectively. Cost of revenues increased due to the completion of two independent self-produced films and two films completed under Production Service Agreements.

General and Administrative Expenses and Professional Fees

General and administrative expenses for the year ending June 30, 2019, was $348,636. Professional fees for the year ending June 30, 2019 was $56,170. General and administrative expenses for the year ending June 30, 2018, was $124,298. Professional fees for the year ending June 30, 2018 was $82,107. The increase in general and administrative fees was due to consulting fees incurred of $258,186. Professional fees decreased during the year was due to decreased accounting and audit fees.

Other Expense

During the years ended June 30, 2019 and 2018, the Company had interest expense of $105,939 and $90,323, respectively, relating to its notes payable. During the years ended June 30, 2019 and 2018, the Company had interest income of $0 and $16,811, respectively, related to promissory notes receivable. During the year ended June 30, 2018, the Company recorded a loss on settlement of debt of $74,075.

Net Loss

Our net loss for the year ending June 30, 2019 was $467,847. Our net loss for the year ending June 30, 2018 was $343,992.

Liquidity and Capital Resources

For the year ending June 30, 2019 and the year ending June 30, 2018

As of June 30, 2019, we had cash of $57,154, negative working capital of $403,440 and an accumulated deficit of $1,755,486. As of June 30, 2018, we had cash of $270,826, negative working capital of $1,950,406 and an accumulated deficit of $1,289,249.

Cash flows used in operating activities

During the year ended June 30, 2019, the Company provided cash flows by operating activities of $54,328. A net loss of $467,847 was offset by capitalized consulting expense of $258,185, decrease in prepaid expenses $218,658, a decrease in film cost of $2,106,628, as well as an increase in accrued liabilities of $45,424, a increase in interest payable of $67, 534 a decrease in deferred revenue of $1,445,073, a increase in accounts receivable of $583,334, and decrease in other payable of $55,000 contributed to the total net cash provided amount.

During the year ended June 30, 2018, the Company used cash flows in operating activities of $1,004,764. A net loss of $343,992 consulting expense of $2,917, loss on settlement of debt of $74,075, as well as a change in interest receivable of $5,159, increase in prepaid expenses of $202,051, increase in film costs of $2,555,359, increase in accrued liabilities of $89,693, an increase in deferred film revenues of $1,799,471, increase in interest payable of $50,323, and an increase in other payable of $55,000 contributed to the total net cash used amount.

Cash flows provided by investing activities

During the year ended June 30, 2019, the Company was provided $0 through the issuance of promissory notes receivable.

During the year ended June 30, 2018, the Company issued a promissory note receivable of $350,000, collected promissory notes receivable for $750,000, and provided loans of $32,000.

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Cash flows used in financing activities

During the year ended June 30, 2019, the Company used $268,000 of cash flows in financing activities. The Company had borrowing from related party of $12,000 and payment of note payable of $250,000, payment of promissory note payable - related party of $30,000.

During the year ended June 30, 2018, the Company was provided $816,000 of cash flows from financing activities. The Company had proceeds from issuance of promissory notes payable of $780,000, proceeds from issuance of promissory notes payable - related party of $350,000, payment of note payable of $500,000, payment of promissory notes payable - related party of $200,000, proceeds from the issuance of stock of $406,000, and retirement of common stock of $20,000.

Non-Cash Investing and Financing Activity

During the year ended June 30, 2019, the Company had $225,000 deferred consulting expenses paid by issuing restricted stock.

During the year ended June 30, 2018, the Company had $140,000 deferred consulting expenses paid by issuing restricted stock, and $127,716 from the conversion of debt into common stock.

Going Concern

The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the year ended June 30, 2019 and the Company incurred a net loss of $467,847. As of June 30, 2019, the Company had a working capital deficiency of $403,440 and an accumulated deficit of $1,755,486. The Company also has loans in default as of June 30, 2019. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion and an identification of new business opportunities. Management believes that future funding will provide the additional cash needed to meet the Company’s obligations as they become due and will allow it to continue looking for opportunities to acquire operating companies or merge with other operational entities. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on operations, in the case of debt financing, or cause substantial dilution for our stockholders, in case of equity financing.

Off-Balance Sheet Arrangements

We have no "off-balance sheet arrangements" (as that term is defined in Item 303(a)(4)(ii) of Regulation S-K).

Critical Accounting Policies, Estimates, and Judgments

Our financial statements are prepared in accordance with accounting principles that are generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We continually evaluate our estimates and judgments, our commitments to strategic alliance partners and the timing of the achievement of collaboration milestones. We base our estimates and judgments on historical experience and other factors that we believe to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known. Besides the estimates identified above that are considered critical, we make many other accounting estimates in preparing our financial statements and related disclosures. All estimates, whether or not deemed critical, affect reported amounts of assets, liabilities, revenues and expenses, as well as disclosures of contingent assets and liabilities. These estimates and judgments are also based on historical experience and other factors that are believed to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical.

Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

    3230 Fallow Field Drive Diamond Bar, CA 91765 Tel: +1 (909) 839-0188 Fax: +1 (909) 839-1128

Report of Independent Registered Public Accounting Firm

To the Board of Directors and shareholders of Almost Never Films Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Almost Never Films Inc. and subsidiaries (the “Company”) as of June 30, 2019 and 2018, and the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity and cash flows for each of the two years in the period ended June 30, 2019, and the related notes (collectively referred to as the “financial statements”).   In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2019 and 2018, and the results of its operations and its cash flows for each of the two years in the period ended June 30, 2019, in conformity with accounting principles generally accepted in the United States of America.

Going Concern Uncertainty

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations and accumulated deficit that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinions

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Simon & Edward, LLP

Los Angeles, California

October 15, 2019

We have served as the Company's auditor since 2016.

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Almost Never Films Inc. and Subsidiaries

Consolidated Balance Sheets

	June 30,			June 30,
	2019			2018
ASSETS
Current Assets
Cash and cash equivalents	$	57,154		$	270,826
Accounts receivable		583,333			-
Prepaid expenses and deposits		-			218,658
Loan receivable		32,000			32,000
Total Current Assets		672,487			521,484
Deferred assets		103,898			137,083
Film costs		428,731			2,535,359
TOTAL ASSETS	$	1,205,116		$	3,193,926
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accrued liabilities	$	41,813		$	87,237
Due to related party		12,000			-
Deferred film revenue		354,398			1,799,471
Interest payable		117,716			50,182
Other Payable		-			55,000
Promissory Note Payable		230,000			480,000
Promissory note payable - related party		320,000			-
Total Current Liabilities		1,075,927			2,471,890
Long-term Liabilities
Promissory note payable - related party		-			350,000
TOTAL LIABILITIES		1,075,927			2,821,890
Stockholders' Equity
Preferred stock: no par value, 5,000,000 authorized; Series A Preferred stock: 2,000,000 authorized; No shares issued and outstanding		-			-
Common stock: 25,000,000 authorized; $0.001 par value 5,778,765 and 5,328,765 shares issued and outstanding respectively.		5,779			5,329
Additional paid in capital		1,880,506			1,655,956
Accumulated deficit		(1,755,486	)		(1,289,249	)
Total shareholders' equity attributable to Almost Never Films Inc. shareholders		130,799			372,036
Non-controlling interest		(1,610	)		-
Total shareholders' equity		129,189			372,036
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,205,116		$	3,193,926

The accompanying notes are an integral part of these financial statements.

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Almost Never Films Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Loss

	Year Ended
	June 30,
	2019			2018
Revenues	$	2,526,346		$	10,000
Cost of Revenues		2,483,448			-
Gross Profit		42,898			10,000
Operating Expenses
General and administration expenses		348,636			124,298
Professional fees		56,170			82,107
Total operating expenses		404,806			206,405
Loss from operations		(361,908	)		(196,405	)
Other (Expense) Income
Interest income		-			16,811
Interest expense		(105,939	)		(90,323	)
Gain (loss) on settlement of debt		-			(74,075	)
Total other income (expense)		(105,939	)		(147,587	)
Net loss before income taxes		(467,847	)		(343,992	)
Provision for income taxes		-			-
Net loss	$	(467,847	)	$	(343,992	)
Net loss attributable to:
Almost Never Films Inc.		(466,237	)		(343,992	)
Non-controlling interest		(1,610	)		-
Comprehensive loss Per Common Share – Basic attributable to Almost Never Films Inc. Shareholders	$	(0.08	)	$	(0.07	)
Weighted Average Common Shares Outstanding - Basic and Diluted		5,645,614			4,771,486

The accompanying notes are an integral part of these financial statements.

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Almost Never Films Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

	Common Stock						Additional						Non-			Total
	Number of Shares			Amount			Paid in Capital			Accumulated Deficit			controlling Interest			Stockholder's Equity
Balance - June 30, 2017		4,755,524		$	4,756		$	928,740		$	(945,257	)	$	-		$	(11,761	)
Common stock issued for cash		406,000			406			405,594			-						406,000
Common shares issued to settle note payable and accrued interest		83,822			83			132,354			-						132,437
Common shares issued for consulting services		125,000			125			139,875									140,000
Common shares issued to settle accounts payable		43,894			44			69,308			-						69,352
Common stock Retired		(85,475	)		(85	)		(19,915	)		-						(20,000	)
Net loss		-			-			-			(343,992	)		-			(343,992	)
Balance - June 30, 2018		5,328,765		$	5,329		$	1,655,956		$	(1,289,249	)	$	-		$	372,036
Common shares issued for consulting services		450,000			450			224,550			-						225,000
Net loss		-			-			-			(466,237	)		(1,610	)		(467,847	)
Balance - June 30, 2019		5,778,765		$	5,779		$	1,880,506		$	(1,755,486	)	$	(1,610	)	$	129,189

The accompanying notes are an integral part of these financial statements.

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Almost Never Films Inc. and Subsidiaries

Consolidated Statements of Cash Flows

	Year Ended
	June 30,
	2019			2018
Cash Flows from Operating Activities:
Net loss	$	(467,847	)	$	(343,992	)
Adjustments to reconcile net loss to net cash used in operating activities:
Consulting expense		258,185			2,917
Loss on settlement of debt		-			74,075
Changes in operating assets and liabilities:
Accounts receivable		(583,333	)		-
Interest receivable		-			5,159
Prepaid expenses and deposits		218,658			(202,051	)
Film costs		2,106,628			(2,535,359	)
Accrued liabilities		(45,424	)		89,693
Deferred film revenue		(1,445,073	)		1,799,471
Interest payable		67,534			50,323
Other payable		(55,000	)		55,000
Net Cash Provided by (Used in) Operating Activities		54,328			(1,004,764	)
Cash Flows from Investing Activities:
Issuance of promissory note receivable		-			(350,000	)
Collection of promissory note receivable		-			750,000
Loan receivable		-			(32,000	)
Net Cash Provided by Investing Activities		-			368,000
Cash Flows from Financing Activities:
Borrowing from related party		12,000			-
Proceeds from issuance of promissory note payable		-			780,000
Proceeds from issuance of promissory note payable - related party		-			350,000
Payment of note payable		(250,000	)		(500,000	)
Payment of promissory note payable - related party		(30,000	)		(200,000	)
Proceeds from common stock subscribed		-			406,000
Retirement of common Stock		-			(20,000	)
Net Cash Provided by (Used in) Financing Activities		(268,000	)		816,000
Net Increase in Cash and Cash Equivalents		(213,672	)		179,236
Cash and Cash Equivalents, beginning of period		270,826			91,590
Cash and Cash Equivalents, end of period	$	57,154		$	270,826
Supplemental Disclosure Information:
Cash paid for interest	$	-		$	40,000
Cash paid for income taxes	$	-		$	-
Supplemental Non-cash Disclosure:
Deferred consulting expense paid in restricted stock	$	225,000		$	140,000
Conversion of debt into common stock	$	-		$	127,716

The accompanying notes are an integral part of these financial statements.

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Almost Never Films Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2019

NOTE 1 – ORGANIZATION AND OPERATIONS

Nature of the Business

Almost Never Films Inc. (the “Company”) was originally incorporated in Nevada in October 2007 as Smack Sportswear (“Smack”), which originally manufactured and sold performance and lifestyle based indoor and sand volleyball apparel and accessories. The Company is now an independent film company focusing on film production, finance and production related services for movies under budgets of $35 million. The Company’s common stock are currently traded on QTCQB under the symbol of “HLWD.”

Share Exchange and Recapitalization

On January 15, 2016, Smack entered into a share exchange agreement with Almost Never Films Inc., a private company incorporated in Indiana on July 8, 2015, and its two shareholders, Danny Chan and Derek Williams.

Pursuant to the agreement, Smack issued 1,000,000 shares of our Series A Convertible Preferred Stock to Mr. Chan and Mr. Williams in exchange for all 2,500,000 shares of issued and outstanding common stock of Almost Never Films Inc. (Indiana). As a result of the share exchange, Almost Never Films Inc. (Indiana) became Smack’s wholly-owned subsidiary, and Mr. Chan and Mr. Williams acquired a controlling interest in the Company.

The share exchange was accounted for as a “reverse acquisition,” and resulted in a recapitalization. Almost Never Films Inc. (Indiana) is deemed to be the acquirer for accounting purposes. The assets acquired and liabilities assumed were $6,566 and $598,869, respectively. Consequently, the assets and liabilities and the historical operations that would be reflected in the financial statements prior to the share exchange would be those of Almost Never Films Inc. (Indiana) and would be recorded at the historical cost basis of Almost Never Films Inc. (Indiana), and the combined financial statements after completion of the share exchange included the assets and liabilities of Almost Never Films Inc. (Indiana), historical operations of Almost Never Films Inc. (Indiana), and operations of Almost Never Films Inc. (Indiana) from the closing date of the share exchange. As a result of the issuance of the shares of our Series A Convertible Preferred Stock pursuant to the share exchange, a change in control of the Company occurred as of the date of consummation of the share exchange. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization. The Company has not yet generated any revenue since inception.

On February 29, 2016, the stockholders of Smack voted to amend the Articles of Incorporation of the Company to (i) increase the authorized capital of the Company to 5,000,000 shares of common stock and (ii) to change the name of the Company to “Almost Never Films Inc.” which took effect on March 2, 2016.

On August 9, 2017, the Company has approved a 1 for 40 reverse split of its issued and outstanding common stock. The common stock accounts and all share related balances have been be applied retroactively for all periods presented.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Team Sports Superstore (Inactive), Almost Never Films Inc. (Indiana), FWIL, LLC (Indiana), Virginia Christmas, LLC (New York), Christmas Camp, LLC (New York), and Country Christmas, LLC (Ohio). Its 90 % owned subsidiaries are One HLWD KY LLC (Kentucky), Two HLWD KY LLC (Kentucky) and Three HLWD KY (Kentucky), LLC. All significant intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing the fair value of common stock issued for services, film costs, among others. Actual results could differ from these estimates.

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Cash

Cash includes demand deposits with banks or other financial institutions. All cash balances are hold by major banking institutions.

Concentration of Risk

The Company maintains its cash with a financial institution, and at times, amounts may exceed federally insured limits. Currently the FDIC insurance coverage limit is $250,000, and the Company is potentially exposed to no un-insured cash balances. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.

The Company’s revenue from customer individually accounts for more than 10% of total revenue are as follows:

· Pureflix: $700,000

· MVE Productions, LLC: $1,778,346

The Company’s accounts receivable from customer individually accounts for more than 10% of total receivable are as follows:

· Pureflix: $583,333

Film Costs, Net

The Company records film costs in accordance with ASC – 926 - Entertainment – Films. Film costs include direct production costs, production overhead and acquisition costs for both motion picture and television productions and are stated at the lower of unamortized cost or estimated fair value and classified as noncurrent assets. The Company qualifies for certain government programs that provide incentives earned in regard to expenditures on qualifying film production activities. The incentives are recorded as an offset to the related asset balance. Estimates used in calculating the fair value of the film costs are based upon assumptions about future demand and market conditions and are reviewed on a periodic basis.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.

In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 – inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

As of June 30, 2019, the balance reported for cash and accounts receivable approximates its fair value because of their short maturities. Notes payable are recorded at agreed values. Debt balances are stated at historical amounts less principal payments, which approximate fair market value. Promissory notes receivable, loan receivable and promissory notes payable are stated at historical amounts less principal payments. The Company believes interest rates in its debt agreements are commensurate with lender risk profiles for similar companies.

Revenue Recognition

In May 2014, the FASB issued new accounting guidance related to revenue from contracts with customers. The core principle of the Standard is that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new guidance requires that companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has chosen to early adopt and apply the standards beginning in the fiscal year ended June 30, 2018, using the modified retrospective approach, which applies the new standard to contracts that are not completed as of the date of adoption. The Company concluded that no adjustment to the opening balance of retained earnings was required upon the adoption of the new standard.

The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

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Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.

When the Company enters into a contract, the Company analyses the services required in the contract in order to identify the required performance obligations which would indicate the Company has met and fulfilled its obligations. For the current contracts in place, the Company has identified performance obligations as one single event, the sign-off by both parties that production is completed and the product (film) is ready for distribution. To appropriately identify the performance obligations, the Company considers all of the services required to be satisfied per the contract, whether explicitly stated or implicitly implied. The Company allocates the full transaction price to the single performance obligation being satisfied.

The Company recognizes revenue when the customer confirms to the Company that all of the terms and conditions of the contract has been met, and the sign-off of the project has been completed. The Company derives its revenues from the follows:

· Production Service Agreement Revenue is related to films where the Company has been engaged as an independent contractor to provide production services and other elements related to production for individual film projects. Based on the analysis performed, the Company determined that the performance obligations as of June 30, 2019 had been satisfied for two films, and therefore the Company recognized a portion of revenues associated with the Production Service Agreements.

· Revenue from self-produced films is related to films where the Company has self-produced certain films along with a third party, with the expectation that these films will be distributed in the future. Based on the analysis performed, the Company determined that the performance obligations as of June 30, 2019 had been satisfied for One HLWD and Three HLWD, and therefore the Company recognized all of revenues associated with these two self-produced films.

The Company analyses whether gross sales, or net sales should be recorded, has control over establishing price, and has control over the related costs with earning revenues. The Company has recorded all revenues at the gross price.

Cash payments received are recorded as deferred revenue until the conditions, stated above, of revenue recognition have been met, specifically all obligations have been met as specified in the related customer contract.

Stock Repurchase and Cancellation

During the year ended June 30, 2018, the Company repurchased and cancelled 85,475 shares of common stock. The Company accounted for the transaction in accordance with ASC 505 – Equity – 30 Treasury Stock, Purchase of Treasury Shares or Stock Rights.

Stock Subscription Receivable

The Company has accounted for Stock Subscription Receivable in accordance with ASC – 505 – Equity – 10, and has included the Stock Subscription Receivable balance in equity.

Loss per Share Calculations

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. 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. The Company’s diluted loss per share is the same as the basic loss per share for the years ended June 30, 2019, and 2018, as there are no potential shares outstanding that would have a dilutive effect.

Recently Issued Accounting Pronouncements

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, or ASU 2018-07. Under this ASU, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. The Company has early adopted this guidance, specifically related to the tax calculations of consulting services compensation.

In March 2019, the FASB issued new guidance on film production costs ASU 2019-02, Entertainment Films- Other Assets – Film Costs (Subtopic 926-20). The new guidance is effective for fiscal years beginning after December 15, 2019 (for the year ended December 31, 2020 for the Company) and interim periods within those fiscal years and may be early adopted. The new guidance aligns the accounting for the production costs of an episodic series with those of a film by removing the content distinction for capitalization. It also addresses presentation, requires new disclosures for produced and licensed content and addresses cash flow classification for license agreements to better reflect the economics of an episodic series. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In March 2019, the FASB issued ASU No. 2019-02, Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters Intangibles-Goodwill and Other (Subtopic 920-350). The update aligns the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. The amendments also require that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. The amendments in this update require that an entity test a film or license agreement for program material within the scope of Subtopic 920-350 for impairment at a film group level when the film or license agreement is predominantly monetized with other films and/or license agreements. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee s obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee's right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. The Company does not have any leases and does not expect any material impact related to the new guidance.

Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

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Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the year ended June 30, 2019 the Company had a net loss from operations of $467,847. As of June 30, 2019, the Company has an accumulated deficit of $1,755,486. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company also has promissory notes in default as of June 30, 2019.

The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion and an identification of new business opportunities.

The Company plans on raising the required funds through completion of film projects resulting in revenues, and further potential equity and debt offerings. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern.

NOTE 3 – PROMISSORY NOTES RECEIVABLE

On June 7, 2017, the Company entered into an agreement for a 2.5% promissory note in exchange for lending $200,000 to a third party. The principal of $200,000 was due to the Company forty-five (45) days from receipt of the funds. The principal and $5,000 interest receivable were received on July 17, 2017.

On June 12, 2017, the Company entered into an agreement for a 2.5% promissory note in exchange for lending $200,000 to a third party. The principal of $200,000 was due to the Company forty-five (45) days from receipt of the funds. The principal and $5,000 interest receivable were received on July 26, 2017.

During the year ended June30, 2019 and 2018, a total amount of $0 and $4,841, respectively was recorded as interest income related to the two $200,000 notes.

NOTE 4 – FILM COSTS, NET

Film costs are comprised of the following:

	June 30, 2019		June 30, 2018
Independent Self-Produced Film Costs, Net	$	85,475	$	982,175
Capitalized Film Costs covered under Production Service Agreements, Net		343,256		1,553,184
Total Film Costs, Net	$	428,731	$	2,535,359

Film costs include salaries and wages, and all other direct costs associated with the motion pictures and television productions. In addition, the Company qualifies for certain government programs that provide incentives earned in regards to expenditures on qualifying film production activities. The incentives are recorded as an offset to the related asset balance.

As of June 30, 2019, the Company performed fair value measurements related to film costs and determined that there were no indicators of impairment. During the year ended June 30, 2019, the Company did not recognize impairment loss.

On November 10, 2017 the Company executed a First Amendment Agreement to its 6x picture Production and Distribution Agreement between Big Film Factory LLC (“Big Film” or “Prodco”) and Pure Flix Entertainment LLC (“PFE”), (the “Agreement”). The Agreement memorializes the understanding with respect to the development, packaging, production, post-production and worldwide distribution of the films intended for initial and primary worldwide exhibition. The Company, will be added as a party to the initial agreement by and between Big Film and PFE, wherever Big Film is referenced in connection with providing production services in conjunction with Big Film as well as providing production capital and cash following each of the first six (6) films produced under the Agreement (“6 Pictures”). Both Prodco and PFE agree to expand the defined role of “Prodco” in the Agreement, to add the Company to that definition, and grant the Company equally the same role and responsibilities heretofore only held by Big Film in connection with the 6 Pictures.

During the year ended June 30, 2019, $2,483,448 of capitalized film costs were expensed as cost of revenues, of which $889,248 related to Last Vermont Christmas LLC, $868,795 related to Christmas Camp LLC, $354,788 related to One HLWD, and $370,617 related to Three HLWD.

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NOTE 5 – DEFERRED FILM REVENUE

On March 27, 2018, the Company entered into a Production Services Agreement with MVE Productions, LLC to provide production services for a film. In relation to the film, the Company created a Limited Liability Corporation, ‘Christmas Camp LLC.’ The Production Services Agreement was planned to run from April 9, 2018 to August 27, 2018. As of February 28, 2019, all criteria had been met in order for the Company to recognize revenue. During the year ended June 30, 2019 deferred revenue of $879,112 has been recognized as revenues.

On March 27, 2018, the Company entered into a Production Services Agreement with MVE Productions, LLC to provide production services for a film. In relation to the film, the Company created a Limited Liability Corporation, ‘Last Vermont Christmas LLC.’ The Production Services Agreement was planned to run from April 9, 2018 to September 28, 2018. As of March 18, 2019, all criteria had been met in order for the Company to recognize revenue. During the year ended June 30, 2019 deferred revenue of $899,234 has been recognized as revenues.

On June 19, 2018, the Company entered into a Production Services Agreement with MVE Productions, LLC to provide production services for a film. In relation to the film, the Company created a Limited Liability Corporation, ‘Country Christmas LLC.’ The Production Services Agreement will run from June 25, 2018 to October 15, 2018. The agreement is still ongoing as of the date of this filing. The Company has not recognized any film revenue for the year ended June 30, 2019. As of June 30, 2019, the Company has recorded $354,398 of deferred revenue in relation to this film.

NOTE 6 – PROMISSORY NOTES PAYABLE

On October 11, 2017, the Company issued a $150,000 Promissory Note in exchange for receiving $150,000 proceeds. The principal of $150,000 is due fourteen (14) months from the receipt of the funds, and a total interest charge of ten percent, or $15,000 is to be recorded over the term of the loan. An interest payable of $17,510 and $9,247 has been recorded as of June 30, 2019, and 2018, respectively. During the year ended June 30, 2019, and 2018, interest expense of $23,263 and $9,247 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as One HLWD KY LLC. During the year ended June 30, 2019, The Company paid principal of $100,000 and $15,000 of interest payable. The balance of principal note for amount of $50,000 is currently in default and currently accrues interest at 22% per annum. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extend the maturity date to June 30, 2020.

On January 4, 2018, the Company issued a $80,000 Promissory Note in exchange for receiving $80,000 proceeds. The principal of $80,000 is due twelve (12) months from the receipt of the funds, and bears interest at 10% per annum. An interest payable of $8,684 and $3,879 has been recorded as of June 30, 2019 and June 30, 2018, respectively. During the year ended June 30, 2019, and 2018, interest expense of $12,805 and $3,879 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as River Runs Red. During the year ended June 30, 2019, The Company paid $8,000 interest. The note was in default as of June 30, 2019. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extend the maturity date to June 30, 2020.

On February 6, 2018, the Company issued a $100,000 Promissory Note in exchange for receiving $100,000 proceeds. The principal of $100,000 is due twelve (12) months from the receipt of the funds, and bears interest at 10% per annum. An interest payable of $19,216 and $3,945 has been recorded as of June 30, 2019, and 2018. During the year ended June 30, 2019 and 2018, interest expense of $15,271 and $3,945 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as River Runs Red. The note was in default as of June 30, 2019. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extend the maturity date to June 30, 2020.

On February 7, 2018, the Company issued a $150,000 Promissory Note in exchange for receiving $150,000 proceeds. The principal of $150,000 is due twelve (12) months from the receipt of the funds, and bears interest at 10% per annum. An interest payable of $10,045 and $5,877 has been recorded as of June 30, 2019 and 2018, respectively. During the year ended June 30, 2019 and 2018, interest expense of $19,168 and $5,877 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as River Runs Red.

During the year ended June 30, 2019, The Company paid $150,000 of principal and $15,000 of interest payable. As of June 30, 2019, unpaid interest of $10,045 is due. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extinguish the debt in exchange for the issuance of 20,000 common shares.

NOTE 7 – RELATED PARTY TRANSACTIONS

On September 19, 2017 the company issued a 10% Promissory Note in exchange for receiving $350,000 from Kruse Farms, LP., a Company owned by one of the Company’s principle owners, to fund the production of a motion picture. The principal of $350,000 is due in twenty-four (24) months from receipt of the funds. The Company and the lender have extended the maturity date to June 30, 2020. Interest payable of $62,142 and $27,233 has been recorded as of June 30, 2019, and 2018, respectively. During the year ended June 30, 2019, and 2018, interest expense was $34,910 and $27,233, respectively. During the year ended June 30, 2019, The Company paid a part of principal of $30,000 and as of June 30, 2019, the principal balance of note is $320,000.

As of June 30, 2019, the Company has advanced $20,000 as a loan to the Company’s Chief Creative Officer.

During the year ended June 30, 2019, the Company borrowed a $12,000 from a related party. The amounts are due on demand and non-interest bearing.

During the year ended June 30, 2019, and 2018, the Company paid $27,500, and $95,636, respectively to the Chief Creative Officer for fees related to production and managing movie services.

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NOTE 8 – NOTE PAYABLE

In August 2015, Smack entered into an unsecured promissory note agreement with an individual. The agreement allowed Smack to borrow up to $66,613 at an interest rate of 10 percent per year. This $66,613 note was assumed by the Company during the recapitalization. During the year ended June 30, 2018, the Company settled the principal amount of $66,613 and interest payable of $17,209 for a total of $83,822 through issuance of 83,822 common shares. For the year ended June 30, 2019, and 2018, interest expense of $0, and $5,037 were recorded, respectively.

NOTE 9 – SHARE CAPITAL

Common Stock

On July 5, 2017, the Company repurchased and cancelled 85,475 shares of common stock of the company for $20,000.

On August 9, 2017, the Company has approved a 1 for 40 reverse split of its issued and outstanding common stock. The common stock accounts and all share related balances have been applied retroactively for all periods presented.

On September 11, 2017, the Company amended the Articles of Incorporation to decrease the authorized capital to 25,000,000 shares of common stock.

During the year ended June 30, 2018, the Company entered into four share purchase agreements with four investors for 406,000 common shares at $1 per share. The shares were issued during the year ended June 30, 2018.

During the year ended June 30, 2018, the Company issued 83,822 common shares to settle $132,437 of principal note payable and accrued interest.

During the year ended June 30, 2018, the Company issued 43,894 common shares to settle $69,352 of accounts payable.

During the year ended June 30, 2018, the Company issued 125,000 common shares for consulting services, valued at $140,000.

On October 17, 2018, the Company issued 250,000 and 200,000 common shares at $0.50 for consulting services, to two individuals, valued at $125,000, and $100,000, respectively.

NOTE 10 – COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real or personal property. The Company’s officers have provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

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NOTE 11 – INCOME TAXES

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law. The Tax Act includes numerous changes to tax laws impacting business, the most significant being a permanent reduction in the federal corporate income tax rate from 34% to 21%. The rate reduction took effect on January 1, 2018.

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% and 27.5% to the net loss before provision for income taxes for the following reasons:

	Year ended June 30,
	2019			2018
Federal Income Tax benefits (expenses) attributable to
Current Operation	$	123,707		$	144,758
Less: Valuation Allowance		(123,707	)		(144,758	)
Net Provision for Federal Income Taxes	$	-		$	-

Net deferred tax assets consist of the following components as of:

	June 30,			June 30,
	2019				2018
Deferred tax assets	$	300,336		$	176,629
Less: valuation allowance		(300,336	)		(176,629	)
Deferred tax assets, net	$	-		$	-

At June 30, 2019 and 2018, the Company had $1,755,486 and $1,289,249, respectively of the U.S. net operating losses (the “U.S. NOLs”), which begin to expire beginning in 2036. NOLs generated in tax years prior to June 30, 2018, can be carryforward for twenty years, whereas NOLs generated after June 30, 2018 can be carryforward indefinitely.

NOTE 12 – SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date the consolidated financial statements were issued. Based on our evaluation no events have occurred that require disclosure, other than those disclosed below.

On July 16, 2019, the Company received notice that Country Christmas Album has been confirmed as completed and delivered in accordance with the agreement terms.

Subsequent to year end, the Company dissolved CXA Movie, LLC on October 5, 2019. In addition, the Company dissolved FWIL, LLC on September 16, 2019.

Subsequent to June 30, 2019, the Company amended the following terms of promissory notes:

- Promissory note of $150,000, dated February 7, 2018, $15,000 of interest payable to be paid through the issuance of 20,000 common shares. The shares have been issued as of the date of this report.

- Promissory note of $80,000, dated January 4, 2018. Maturity date has been extended to June 30, 2020. Amended interest payable is 10% of the loan payable in common stock of Almost Never Films. The shares have not yet been issued as of the date of this report.

- Promissory note of $100,000, dated February 6, 2018. New principal amount is $0.  As part of the amendment, the lender transferred $50,000 of the promissory note to one new lender, and $50,000 to another new lender.

- Promissory note of $350,000, dated September 19, 2017. Maturity date has been extended to June 30, 2020.

- Promissory note of $150,000, dated October 11, 2017. Maturity date has been extended to June 30, 2020. New principal amount is $50,000 with interest of 10%, as $100,000 has been paid.

- Two new promissory notes of $50,000 each were entered, bearing interest at 10%. These new notes replaced amounts due on previously issued promissory notes.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

There were no disagreements with our accountants related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure during the two fiscal years and subsequent interim periods.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including chief executive officer (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer), we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, our chief executive officer (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer) concluded as of the evaluation date that our disclosure controls and procedures were not effective such that the material information required to be included in our SEC reports is accumulated and communicated to our management, including our chief executive officer (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer), recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, particularly during the period when this report was being prepared.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, for the company.

Internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of its management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Management recognizes that there are inherent limitations in the effectiveness of any system of internal control, and accordingly, even effective internal control can provide only reasonable assurance with respect to financial statement preparation and may not prevent or detect material misstatements. In addition, effective internal control at a point in time may become ineffective in future periods because of changes in conditions or due to deterioration in the degree of compliance with our established policies and procedures.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in there being a more than remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.

Under the supervision and with the participation of our chief executive officer (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer), management conducted an evaluation of the effectiveness of our internal control over financial reporting, as of June 30, 2019, based on the framework set forth in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under this framework, management concluded that our internal control over financial reporting was not effective as of the evaluation date due to the factors stated below.

Management assessed the effectiveness of our company’s internal control over financial reporting as of evaluation date and identified the following material weaknesses:

· Lack of proper segregation of duties due to limited personnel;

· Lack of a formal review process that includes multiple levels of review from adequate personnel with requisite expertise.

We do not have a functioning audit committee or outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.

Management is committed to improving its internal controls and will (1) continue to use third party specialists to address shortfalls in staffing and to assist our company with accounting and finance responsibilities, (2) increase the frequency of independent reconciliations of significant accounts which will mitigate the lack of segregation of duties until there are sufficient personnel and (3) may consider appointing outside directors and audit committee members in the future.

Management has discussed the material weakness noted above with our independent registered public accounting firm. Due to the nature of this material weakness, there is a more than remote likelihood that misstatements which could be material to the annual or interim financial statements could occur that would not be prevented or detected.

This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this annual report.

Changes in Internal Controls Over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during the year ended June 30, 2019 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

Item 9B. Other Information

None.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT.

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

Directors and Executive Officers

Effective as of the consummation of the transactions contemplated by the Exchange Agreement, Doug Samuelson resigned as our Interim Chief Executive Officer and Chief Financial Officer and Director. Danny Chan became our Chief Executive Officer and Chief Financial Officer and a director of the Company. Derek Williams became our Chief Operating Officer.

Below are the names of and certain information regarding the Company's current executive officers and directors:

Name	Age	Position	Date Named to Board of Directors/as Executive Officer
Danny Chan	41	Chief Executive Officer, Chief Financial Officer and Director	January 15, 2017
Daniel Roth	49	Chief Creative Officer, Chief Operating Officer	August 24, 2017

The principal occupation and business experience during the past five years for our executive officers and directors are as follows:

Danny Chan, 40, Chief Executive Officer, Chief Financial Officer, Director. Danny Chan joined us as Chief Executive Officer, Chief Financial Officer and a director of our Board on January 15, 2017. Since October of 2012 to Present, Mr. Chan serves as a managing director of Iconic Private Equity Partners. From July of 2010 to September of 2012 Mr. Chan served as managing director of Raider Capital Corporation. Mr. Chan earned a bachelor's degree in finance from Indiana University.

Daniel T Roth, 48, Chief Creative Officer. has over 20 years of experience in the film and television industry. specializing in developing, financing and producing content for film. Previously, from September of 2012 until August 24, 2017, Mr. Roth was a co-founder and partner of Parkside Pictures. Mr. Roth began his career in 1997 as a casting director, eventually opening his company Casting House in 2002 with offices in New York and Los Angeles.

Mr. Roth has produced over 30 movies over his career, including producing “LBJ” directed by Rob Reiner and starring Woody Harrelson, which premiered in September 2016 at the Toronto Film Festival. Also producing the Rob Cohen (“Fast & Furious”) film Hurricane Heist.” Mr. Roth is a graduate of the Ohio State University.

Directors are elected to serve until the next annual meeting of stockholders and until their successors are elected and qualified. Directors are elected by a plurality of the votes cast at the annual meeting of stockholders and hold office until the expiration of the term for which he or she was elected and until a successor has been elected and qualified.

A majority of the authorized number of directors constitutes a quorum of the Board for the transaction of business. The directors must be present at the meeting to constitute a quorum. However, any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board individually or collectively consent in writing to the action.

Other Key Personnel

We have no significant employees other than the officers and directors described above.

Family Relationships

There are no family relationships among our directors or executive officers.

Involvement in Certain Legal Proceedings

No executive officer or director of ours has been involved in the last ten years in any pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company. The Company’s property is not the subject of any pending legal proceedings.

Compliance with Section 16(a) of the Exchange Act

Section 16(a) of the Exchange Act requires our directors, executive officers and greater than ten percent beneficial owners of our Common Stock to file reports of ownership and changes in ownership with the Securities and Exchange Commission. Directors, executive officers and greater than ten percent stockholders are required by the rules and regulations of the Securities and Exchange Commission to furnish us with copies of all Section 16(a) reports they file. Based solely on a review of the copies of these reports furnished to us and written representations from such directors, executive officers and stockholders with respect to the period from June 30, 2017, through June 30, 2019, we are not aware of any required Section 16(a) reports that were not filed on a timely basis.

27

Board Committees

The Board currently does not have any committees. Until further determination by the Board, the full Board will undertake the duties of the audit committee, compensation committee and nominating committee.

Code of Ethics

The Company currently has not adopted a written code of ethics. We intend to implement a comprehensive corporate governance program, including adopting a Code of Ethics.

Director Independence

We are not currently subject to listing requirements of any national securities exchange or inter-dealer quotation system which has requirements that a majority of the Board be "independent" and, as a result, we are not at this time required to have our Board comprised of a majority of "Independent Directors."

ITEM 11. EXECUTIVE COMPENSATION.

Summary Compensation Table

The following table summarizes the compensation of our executive officers, directors and President during the fiscal years ended June 30, 2019 and 2018. No other officers or directors received annual compensation in excess of $100,000 during the last fiscal year.

Name and Principal Position	Year ($)	Salary($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	Nonqualified Deferred Compensation Earnings ($)	All Other Compensation ($)		Total  ($)
Danny Chan	2018								56,400		56,400
	2019								-		-
Daniel Roth	2018								91,585		91,585
	2019								-		-
Damiano Tucci (1)	2018								95,636		95,636
	2019								27,500		27,500

___________

(1) Damiano Tucci resigned on October 18, 2018.

Stock-Based Compensation

The Company periodically issues Common Stock to employees for services. The Company accounts for stock payments to employees by measuring the cost of services received in exchange for equity on the grant date fair value of the awards, with the cost recognized as compensation expense in the Company’s financial statements over the vesting period of the awards.

Director Compensation

No director has been compensated for his role as a Director in the fiscal years ended June 30, 2019 or 2018.

We have no plans in place and have never maintained any plans that provide for the payment of retirement benefits or benefits that will be paid primarily following retirement including, but not limited to, tax qualified deferred benefit plans, supplemental executive retirement plans, tax-qualified deferred exchange plans and nonqualified deferred exchange plans. Similarly, we have no contracts, agreements, plans or arrangements, whether written or unwritten, that provide for payments to the named executive officers or any other persons following, or in connection with the resignation, retirement or other termination of a named executive officer, or a change in control of us or a change in a named executive officer's responsibilities following a change in control.

We have no contracts, agreements, plans or arrangements, whether written or unwritten, that provide for payments to the named executive officers listed above.

28

Employment Agreement

We have no employment agreements with any of our officers, and have not issued any incentive or other stock options, profit sharing or similar benefits.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. In accordance with SEC rules, shares of our Common Stock which may be acquired upon exercise of stock options or warrants which are currently exercisable or which become exercisable within 60 days of the date of the applicable table below are deemed beneficially owned by the holders of such options and warrants and are deemed outstanding for the purpose of computing the percentage of ownership of such person, but are not treated as outstanding for the purpose of computing the percentage of ownership of any other person. Subject to community property laws, where applicable, the persons or entities named in the tables below have sole voting and investment power with respect to all shares of our Common Stock indicated as beneficially owned by them.

Beneficial Ownership of Our Common Stock

The following table sets forth information with respect to the beneficial ownership of our Common Stock as of September 18, 2019 by (i) each stockholder known by us to be the beneficial owner of more than 5% of our Common Stock, (ii) each of our directors and executive officers, and (iii) all of our directors and executive officers as a group. To the best of our knowledge, except as otherwise indicated, each of the persons named in the table has sole voting and investment power with respect to the shares of our Common Stock beneficially owned by such person, except to the extent such power may be shared with a spouse. To our knowledge, none of the shares listed below are held under a voting trust or similar agreement, except as noted. Other than the Share Exchange, to our knowledge, there is no arrangement, including any pledge by any person of securities of the Company or any of its parents, the operation of which may at a subsequent date result in a change in control of the Company.

Unless otherwise indicated in the following table, the address for each person named in the table is c/o 8605 Santa Monica Blvd #98258 West Hollywood, California 90069-4109.

Name and Address of Beneficial Owner	Title of Class	Amount and Nature of Beneficial Owner		Percent of Class(1)
5% Stockholder
William R. Kruse (1)	Common Stock		1,522,950		26.35	%
Named Executive Officers and Directors
Danny Chan, Chief Executive Officer, Chief Financial Officer and Director	Common Stock		776,476		13.44	%
Daniel T. Roth, Chief Creative Officer#	Common Stock		776,476		13.44	%

____________ 

(1) 1340 S Main Ste 300, Grapevine TX 76051

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Transactions with Related Persons

During our last fiscal year and except as disclosed below, none of the following persons has had any direct or indirect material interest in any transaction worth more than $120,000 to which our company was or is a party, or in any proposed transaction to which our company proposes to be a party:

(a)	any director or officer of our company;
(b)	any proposed director of officer of our company;
(c)	any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our common stock; or,
(d)	any member of the immediate family of any of the foregoing persons (including a spouse, parents, children, siblings, and in-laws).

29

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

The following table sets forth the fees billed to the Company for professional services rendered by the Company's independent registered public accounting firm, for the years ended June 30, 2019 and June 30, 2018:

Fees	2019
Audit fees	$	36,000
Audit Related Fees	$	-
Tax fees	$	3,500
All other fees	$	-
Total Fees	$	39,500

Fees	2018
Audit fees	$	29,676
Audit Related Fees	$	-
Tax fees	$	2,000
All other fees	$	-
Total Fees	$	31,676

Audit Fees. Consist of fees billed for professional services rendered for the audits of our financial statements and reviews of our interim consolidated financial statements included in quarterly reports.

Tax Fees Somerset CPAs did not provide us with professional services for tax compliance, tax advice and tax planning. These services include assistance regarding federal, state and local tax compliance and consultation in connection with various transactions and acquisitions.

30

Item. 15. EXHIBITS

			Incorporated by Reference
Exhibit No.	Description	Form	SEC File  No.	Exhibit		Filing Date	Filed Herewith
3.1	Articles of Incorporation of the Company	SB2	333-148510		3.1	1/7/2008
3.2	Amendment to Articles of Incorporation of the Company	8-K	000-53049		3.2	4/13/2012
3.3	Amendment to Articles of Incorporation of the Company	8-K	000-53049		3.1	2/29/2016
3.4	Bylaws of the Company	SB2	333-148510		3.2	1/7/2008
4.1	Certificate of Designation of Series A Convertible Preferred Stock	8-K	000-53049		4.1	1/18/2016
10.1	Share Exchange Agreement dated January 15, 2016 by and among SMACK Sportswear, Inc., Almost Never Films Inc., and the Shareholders of Almost Never Films Inc.	8-K	000-53049		2.1	1/18/2016
31.1	Certification by Chief Executive Officer and Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act						x
32.1	Certification by Chief Executive Officer and Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code						x
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Extension Presentation Linkbase.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ALMOST NEVER FILMS INC.
Dated: October 15, 2019	By:	/s/ Danny Chan
		Danny Chan
		Chief Executive Officer and Chief Financial Officer

32

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SEC Rules 13a-14(a) and 15d-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Danny Chan, Chief Executive Officer and Chief Financial Officer of Almost Never Films Inc., certify that:

1.	I have reviewed this Annual Report on Form 10-K of Almost Never Films Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 15, 2019	By:	/s/ Danny Chan
		Danny Chan
		Chief Executive Officer and Chief Financial Officer
		(Principal Executive and Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

 PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY

 ACT OF 2002.

In connection with the Annual Report on Form 10-K of Smack Sportswear, (the “Company”) for the year ended June 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Danny Chan, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:

1.	The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 15, 2019

/s/ Danny Chan                                                    

Danny Chan

Chief Executive Officer and Chief Financial

Officer (Principal Executive and Principal

Financial Officer)

XML

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 16, 2019	Jun. 30, 2019	Jun. 30, 2018	Feb. 07, 2018	Feb. 06, 2018	Jan. 04, 2018	Oct. 11, 2017
Subsequent Event [Line Items]
Promissory note payable		$ 230,000	$ 480,000
Interest payable		117,716	50,182
Amount transfer to new lender		250,000	500,000
Promissory note on February 7, 2018
Subsequent Event [Line Items]
Promissory note payable				$ 150,000
Principal amount of promissory note		150,000
Percentage of notes payable				22.00%
Promissory note on January 4, 2018
Subsequent Event [Line Items]
Promissory note payable						$ 80,000
Interest payable		8,684	3,879
Percentage of notes payable						22.00%
Promissory note on February 6, 2018
Subsequent Event [Line Items]
Promissory note payable					$ 100,000
Interest payable		19,216	3,945
Percentage of notes payable					22.00%
Promissory note on October 11, 2017
Subsequent Event [Line Items]
Promissory note payable							$ 150,000
Interest payable		17,510	$ 9,247
Principal amount of promissory note		$ 100,000
Percentage of notes payable							22.00%
Subsequent event | Promissory note on February 7, 2018
Subsequent Event [Line Items]
Promissory note payable	$ 150,000
Interest payable	$ 15,000
Number of shares issued to settle interest on promissory note	20,000
Subsequent event | Promissory note on January 4, 2018
Subsequent Event [Line Items]
Promissory note payable	$ 80,000
Extended maturity date of promissory note	Jun. 30, 2020
Percentage of notes payable	10.00%
Subsequent event | Promissory note on February 6, 2018
Subsequent Event [Line Items]
Promissory note payable	$ 100,000
Extended maturity date of promissory note	Jun. 30, 2020
Principal amount of promissory note	$ 50,000
Subsequent event | Promissory note on September 19, 2017
Subsequent Event [Line Items]
Promissory note payable	$ 350,000
Extended maturity date of promissory note	Jun. 30, 2020
Subsequent event | Promissory note on October 11, 2017
Subsequent Event [Line Items]
Promissory note payable	$ 150,000
Extended maturity date of promissory note	Jun. 30, 2020
Principal amount of promissory note	$ 50,000
Percentage of notes payable	10.00%
Amount transfer to new lender	$ 100,000
Subsequent event | New promissory one
Subsequent Event [Line Items]
Promissory note payable	$ 50,000
Percentage of notes payable	10.00%
Subsequent event | New promissory two
Subsequent Event [Line Items]
Promissory note payable	$ 100,000
Percentage of notes payable	10.00%

XML

SHARE CAPITAL (Detail Textuals)			1 Months Ended	12 Months Ended
	Aug. 09, 2017 shares	Jul. 05, 2017 USD ($) shares	Oct. 17, 2018 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) shares	Jun. 30, 2018 USD ($) Agreement Investor $ / shares shares	Sep. 11, 2017 shares	Feb. 29, 2016 shares
Schedule of Capitalization, Equity [Line Items]
Stock repurchased and forfeited shares during the period | shares		85,475			85,475
Stock repurchased and forfeited during the period | $		$ 20,000
Description of common stock reverse stock split	1 for 40
Common shares issued to settle accounts payable | $					$ 69,352
Common shares issued for consulting services | $				$ 225,000	$ 140,000
Common stock, shares authorized | shares	25,000,000			25,000,000	25,000,000	25,000,000	5,000,000
Share Purchase Agreements
Schedule of Capitalization, Equity [Line Items]
Number of agreements | Agreement					4
Number of investor | Investor					4
Number of share purchase | shares					406,000
Share price of stock purchase in agreement | $ / shares					$ 1
Common Stock
Schedule of Capitalization, Equity [Line Items]
Common shares issued to settle note payable and accrued interest | $					$ 132,437
Common shares issued to settle note payable and accrued interest (in shares) | shares					83,822
Common shares issued to settle accounts payable | $					$ 44
Common shares issued to settle accounts payable (in shares) | shares					43,894
Common shares issued for consulting services | $				$ 450	$ 125
Common shares issued for consulting services (in shares) | shares				450,000	125,000
First individual
Schedule of Capitalization, Equity [Line Items]
Shares issued price per share (in dollars per share) | $ / shares			$ 0.50
Common shares issued for consulting services | $			$ 125,000
Common shares issued for consulting services (in shares) | shares			250,000
Second individual
Schedule of Capitalization, Equity [Line Items]
Shares issued price per share (in dollars per share) | $ / shares			$ 0.50
Common shares issued for consulting services | $			$ 100,000
Common shares issued for consulting services (in shares) | shares			200,000

XML

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenues	$ 2,526,346	$ 10,000
Cost of Revenues	2,483,448
Gross Profit	42,898	10,000
Operating Expenses
General and administration expenses	348,636	124,298
Professional fees	56,170	82,107
Total operating expenses	404,806	206,405
Loss from operations	(361,908)	(196,405)
Other (Expense) Income
Interest income		16,811
Interest expense	(105,939)	(90,323)
Gain (loss) on settlement of debt		(74,075)
Total other income (expense)	(105,939)	(147,587)
Net loss before income taxes	(467,847)	(343,992)
Provision for income taxes	0	0
Net loss	(467,847)	(343,992)
Net loss attributable to: Almost Never Films Inc.	(466,237)	(343,992)
Non-controlling interest	(1,610)
Comprehensive Loss	$ (467,847)	$ (343,992)
Comprehensive loss Per Common Share - Basic attributable to Almost Never Films Inc. Shareholders (in dollars per share)	$ (0.08)	$ (0.07)
Weighted Average Common Shares Outstanding - Basic and Diluted (in shares)	5,645,614	4,771,486

XML

PROMISSORY NOTES PAYABLE

12 Months Ended

Jun. 30, 2019

Promissory Notes Payable [Abstract]

PROMISSORY NOTES PAYABLE

NOTE 6 – PROMISSORY NOTES PAYABLE

On October 11, 2017, the Company issued a $150,000 Promissory Note in exchange for receiving $150,000 proceeds. The principal of $150,000 is due fourteen (14) months from the receipt of the funds, and a total interest charge of ten percent, or $15,000 is to be recorded over the term of the loan. An interest payable of $17,510 and $9,247 has been recorded as of June 30, 2019, and 2018, respectively. During the year ended June 30, 2019, and 2018, interest expense of $23,263 and $9,247 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as One HLWD KY LLC. During the year ended June 30, 2019, The Company paid principal of $100,000 and $15,000 of interest payable. The balance of principal note for amount of $50,000 is currently in default and currently accrues interest at 22% per annum.

On January 4, 2018, the Company issued a $80,000 Promissory Note in exchange for receiving $80,000 proceeds. The principal of $80,000 is due twelve (12) months from the receipt of the funds, and bears interest at 10% per annum. An interest payable of $8,684 and $3,879 has been recorded as of June 30, 2019 and June 30, 2018, respectively. During the year ended June 30, 2019, and 2018, interest expense of $12,805 and $3,879 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as River Runs Red. During the year ended June 30, 2019, The Company paid $8,000 interest. The note was in default as of June 30, 2019. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extend the maturity date to June 30, 2020.

On February 6, 2018, the Company issued a $100,000 Promissory Note in exchange for receiving $100,000 proceeds. The principal of $100,000 is due twelve (12) months from the receipt of the funds, and bears interest at 10% per annum. An interest payable of $19,216 and $3,945 has been recorded as of June 30, 2019, and 2018. During the year ended June 30, 2019 and 2018, interest expense of $15,271 and $3,945 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as River Runs Red. The note was in default as of June 30, 2019. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extend the maturity date to June 30, 2020.

On February 7, 2018, the Company issued a $150,000 Promissory Note in exchange for receiving $150,000 proceeds. The principal of $150,000 is due twelve (12) months from the receipt of the funds, and bears interest at 10% per annum. An interest payable of $25,045 and $5,877 has been recorded as of June 30, 2019 and 2018, respectively. During the year ended June 30, 2019 and 2018, interest expense of $19,168 and $5,877 was recorded, respectively. The proceeds were used by the Company to fund the motion picture known as River Runs Red.

During the year ended June 30, 2019, The Company paid $150,000 of principal and $15,000 of interest payable. As of June 30, 2019, unpaid interest of $10,045 is due. Subsequent to June 30, 2019, the Company entered into an amendment agreement with the lender to extinguish the debt in exchange for the issuance of common shares.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Team Sports Superstore (Inactive) and Almost Never Films Inc. (Indiana) and FWIL, LLC (Indiana), and its 90 % owned subsidiaries, One HLWD KY LLC (Kentucky), Two HLWD KY LLC (Kentucky) and Three HLWD KY (Kentucky), LLC, as well as the following entities, which are 100 % owned: Virginia Christmas, LLC (New York), Christmas Camp, LLC (New York), and Country Christmas, LLC (Ohio). All significant intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing the fair value of common stock issued for services, film costs, among others. Actual results could differ from these estimates.

Cash

Cash includes demand deposits with banks or other financial institutions. All cash balances are hold by major banking institutions.

Concentration of Risk

The Company maintains its cash with a financial institution, and at times, amounts may exceed federally insured limits. Currently the FDIC insurance coverage limit is $250,000, and the Company is potentially exposed to no un-insured cash balances. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.

Concentration of Revenues

The Company’s concentration of revenue for individual customers above 10% are as follows:

· Pureflix: $700,000

· MVE Productions, LLC: $1,778,346

Film Costs, net

The Company records film costs in accordance with ASC – 926 - Entertainment – Films. Film costs include direct production costs, production overhead and acquisition costs for both motion picture and television productions and are stated at the lower of unamortized cost or estimated fair value and classified as noncurrent assets. The Company qualifies for certain government programs that provide incentives earned in regards to expenditures on qualifying film production activities. The incentives recorded as an offset to the related asset balance. Estimates used in calculating the fair value of the film costs are based upon assumptions about future demand and market conditions and are reviewed on a periodic basis. During the year ended June 30, 2019, the Company recorded the benefit of qualifying film production activities of $700,000.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.

In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 – inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

As of June 30, 2019, the balance reported for cash and accounts receivable approximates its fair value because of its short maturities. Notes payable are recorded at agreed values. Debt balances are stated at historical amounts less principal payments, which approximate fair market value. Promissory notes receivable, loan receivable and promissory notes payable are stated at historical amounts less principal payments. The Company believes interest rates in its debt agreements are commensurate with lender risk profiles for similar companies.

Revenue Recognition

In May 2014, the FASB issued new accounting guidance related to revenue from contracts with customers. The core principle of the Standard is that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new guidance requires that companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has chosen to early adopt and apply the standards beginning in the fiscal year ended June 30, 2018, using the modified retrospective approach, which applies the new standard to contracts that are not completed as of the date of adoption. The Company concluded that no adjustment to the opening balance of retained earnings was required upon the adoption of the new standard.

The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.

When the Company enters into a contract, the Company analyses the services required in the contract in order to identify the required performance obligations which would indicate the Company has met and fulfilled its obligations. For the current contracts in place, the Company has identified performance obligations as one single event, the sign-off by both parties that production is completed and the product (film) is ready for distribution. To appropriately identify the performance obligations, the Company considers all of the services required to be satisfied per the contract, whether explicitly stated or implicitly implied. The Company allocates the full transaction price to the single performance obligation being satisfied.

The Company recognizes revenue when the customer confirms to the Company that all of the terms and conditions of the contract has been met, and the sign-off of the project has been completed. The Company derives its revenues from the follows:

Production Service Agreement Revenue is related to films where the Company has been engaged as an independent contractor to provide production services and other elements related to production for individual film projects. Based on the analysis performed, the Company determined that the performance obligations as of June 30, 2019 had been satisfied for two films, and therefore the Company recognized a portion of revenues associated with the Production Service Agreements.

Revenue from self-produced films is related to films where the Company has self-produced certain films along with a third party, with the expectation that these films will be distributed in the future. Based on the analysis performed, the Company determined that the performance obligations as of June 30, 2019 had not been satisfied, and therefore the Company recognized all of revenues associated with the self-produced films.

The Company analyses whether gross sales, or net sales should be recorded, has control over establishing price, and has control over the related costs with earning revenues. The Company has recorded all revenues at the gross price.

Cash payments received are recorded as deferred revenue until the conditions, stated above, of revenue recognition have been met, specifically all obligations have been met as specified in the related customer contract.

Stock Repurchase and Cancellation

During the year ended June 30, 2018, the Company repurchased and cancelled 85,475 shares of common stock. The Company accounted for the transaction in accordance with ASC 505 – Equity – 30 Treasury Stock, Purchase of Treasury Shares or Stock Rights.

Stock Subscription Receivable

The Company has accounted for Stock Subscription Receivable in accordance with ASC – 505 – Equity – 10, and has included the Stock Subscription Receivable balance in equity.

Loss per Share Calculations

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. 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. The Company’s diluted loss per share is the same as the basic loss per share for the years ended June 30, 2019, and 2018, as there are no potential shares outstanding that would have a dilutive effect.

Recently Issued Accounting Pronouncements

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, or ASU 2018-07. Under this ASU, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. The Company has early adopted this guidance, specifically related to the tax calculations of consulting services compensation.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee s obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee's right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of ASU 2016-02 will have on the Company's financial statements.

Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the year ended June 30, 2019 the Company had a net loss from operations of $467,847. As of June 30, 2019, the Company has an accumulated deficit of $1,755,486. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company also has promissory notes in default as of June 30, 2019.

The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion and an identification of new business opportunities.

The Company plans on raising the required funds through completion of film projects resulting in revenues, and further potential equity and debt offerings. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10 – COMMITMENTS AND CONTINGENCIES

The Company neither owns nor leases any real or personal property. The Company’s officers have provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

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FILM COSTS, NET (Tables)

12 Months Ended

Jun. 30, 2019

Film Costs [Abstract]

Schedule of film costs

	June 30, 2019		June 30, 2018
Independent Self-Produced Film Costs, Net	$	85,475	$	982,175
Capitalized Film Costs covered under Production Service Agreements, Net		343,256		1,553,184
Total Film Costs	$	428,731	$	2,535,359

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PROMISSORY NOTES RECEIVABLE (Detail Textuals)			12 Months Ended
	Jun. 12, 2017 USD ($)	Jun. 07, 2017 USD ($)	Jun. 30, 2019 USD ($) Promissory_Note	Jun. 30, 2018 USD ($)	Jul. 26, 2017 USD ($)	Jul. 17, 2017 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of notes receivable | Promissory_Note			2
Interest income				$ 16,811
Promissory Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income			$ 0	$ 4,841
Third Party One | Promissory Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of promissory note		2.50%
Promissory notes receivable		$ 200,000
Term of promissory note receivable		45 days
Promissory note receivable gross						$ 5,000
Third Party Two | Promissory Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of promissory note	2.50%
Promissory notes receivable	$ 200,000
Term of promissory note receivable	45 days
Promissory note receivable gross					$ 5,000

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PROMISSORY NOTES PAYABLE (Detail Textuals) - USD ($)					12 Months Ended
	Feb. 07, 2018	Feb. 06, 2018	Jan. 04, 2018	Oct. 11, 2017	Jun. 30, 2019	Jun. 30, 2018
Short-term Debt [Line Items]
Promissory note payable					$ 230,000	$ 480,000
Proceeds from issuance of promissory note payable						780,000
Interest payable					117,716	50,182
Promissory note on October 11, 2017
Short-term Debt [Line Items]
Percentage of notes payable				22.00%
Promissory note payable				$ 150,000
Proceeds from issuance of promissory note payable				$ 150,000
Term of promissory note payable				14 months
Recorded interest over term of loan				$ 15,000
Interest expense					23,263	9,247
Interest payable					$ 17,510	9,247
Percentage of accrued interest					22.00%
Debt instrument principal amount paid					$ 100,000
Promissory note interest payable					15,000
Debt Instrument, Face Amount					50,000
Promissory note on January 4, 2018
Short-term Debt [Line Items]
Percentage of notes payable			22.00%
Promissory note payable			$ 80,000
Proceeds from issuance of promissory note payable			$ 80,000
Term of promissory note payable			12 months
Interest expense					12,805	3,879
Interest payable					8,684	3,879
Percentage of accrued interest			10.00%
Promissory note interest payable					8,000
Promissory note on February 6, 2018
Short-term Debt [Line Items]
Percentage of notes payable		22.00%
Promissory note payable		$ 100,000
Proceeds from issuance of promissory note payable		$ 100,000
Term of promissory note payable		12 months
Interest expense					15,271	3,945
Interest payable					19,216	3,945
Percentage of accrued interest		10.00%
Promissory note on February 7, 2018
Short-term Debt [Line Items]
Percentage of notes payable	22.00%
Promissory note payable	$ 150,000
Proceeds from issuance of promissory note payable	$ 150,000
Term of promissory note payable	12 months
Recorded interest over term of loan					19,168	5,877
Interest expense					25,045	$ 5,877
Percentage of accrued interest	10.00%
Debt instrument principal amount paid					150,000
Promissory note interest payable					15,000
Debt instrument unpaid interest					$ 10,045

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RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 19, 2017	Jun. 30, 2019	Jun. 30, 2018
Related Party Transaction [Line Items]
Interest expense		$ 105,939	$ 90,323
Interest payable		117,716	50,182
Advanced loan to employee		12,000
Amount borrowed from related party		12,000
Proceeds from issuance of promissory note payable - related party		320,000	350,000
Part payment of issuance of promissory note payable related party		30,000
Chief Creative Officer
Related Party Transaction [Line Items]
Advances of loan		20,000
Production and managing movie services fees		27,500	95,636
Kruse Farms, LP | Promissory note
Related Party Transaction [Line Items]
Promissory note receivable	$ 350,000
Percentage of notes payable	10.00%
Interest expense		34,910	27,233
Interest payable		$ 62,142	$ 27,233
Term of receipt of funds	24 months

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INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of net loss before provision for income taxes

	Year ended June 30,
	2019			2018
Federal Income Tax benefits (expenses) attributable to
Current Operation	$	98,586		$	144,758
Less: Valuation Allowance		(98,586	)		(144,758	)
Net Provision for Federal Income Taxes	$	-		$	-

Schedule of net deferred tax assets

	June 30,			June 30,
	2019				2018
Deferred tax assets	$	275,215		$	176,629
Less: valuation allowance		(275,215	)		(176,629	)
Deferred tax assets, net	$	-		$	-

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FILM COSTS, NET (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Film Costs [Abstract]
Independent Self-Produced Film Costs	$ 85,475	$ 982,175
Capitalized Film Costs covered under Production Service Agreements	343,256	1,553,184
Total Film Costs	$ 428,731	$ 2,535,359

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INCOME TAXES (Detail Textuals) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Line Items]
Statutory federal income tax rate	27.50%
Net operating loss carry forwards	$ 1,757,257	$ 1,289,249
Earliest tax year
Income Tax Disclosure [Line Items]
Statutory federal income tax rate	34.00%
Latest tax year
Income Tax Disclosure [Line Items]
Statutory federal income tax rate	21.00%

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NOTE PAYABLE (Detail Textuals) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Aug. 31, 2015
Debt Instrument [Line Items]
Interest expense	$ 105,939	$ 90,323
Interest payable	117,716	50,182
Unsecured promissory note
Debt Instrument [Line Items]
Outstanding balance of notes payable	83,822
Interest expense	0	$ 5,037
Interest payable	$ 17,209
Number of common stock issued	83,822
Smack Sportswear ("Smack") | Unsecured promissory note
Debt Instrument [Line Items]
Maximum borrowing capacity of unsecured debt			$ 66,613
Note payable interest rate			10.00%

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RELATED PARTY TRANSACTIONS

12 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 7 – RELATED PARTY TRANSACTIONS

On September 19, 2017 the company issued a 10% Promissory Note in exchange for receiving $350,000 from Kruse Farms, LP., a Company owned by one of the Company’s principle owners, to fund the production of a motion picture. The principal of $350,000 is due in twenty-four (24) months from receipt of the funds. The Company and the lender has extended the maturity date to June 30, 2020.nterest payable of $62,142 and $27,233 has been recorded as of June 30, 2019, and 2018, respectively. During the year ended June 30, 2019, and 2018, interest expense was $34,910 and $27,233, respectively. During the year ended June 30, 2019, The Company paid a part of principal of $30,000 and as of June 30, 2019, the principal balance of note is $320,000.

As of June 30, 2019, the Company has advanced $20,000 as a loan to the Company’s Chief Creative Officer.

During the year ended June 30, 2019, the Company borrowed a $12,000 from a related party. The amounts are due on demand and non-interest bearing.

During the year ended June 30, 2019, and 2018, the Company paid $27,500, and $95,636, respectively to the Chief Creative Officer for fees related to production and managing movie services.

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PROMISSORY NOTES RECEIVABLE

12 Months Ended

Jun. 30, 2019

Receivables [Abstract]

PROMISSORY NOTES RECEIVABLE

NOTE 3 – PROMISSORY NOTES RECEIVABLE

On June 7, 2017, the Company entered into an agreement for a 2.5% promissory note in exchange for lending $200,000 to a third party. The principal of $200,000 was due to the Company forty-five (45) days from receipt of the funds. The principal and $5,000 interest receivable was received on July 17, 2017.

On June 12, 2017, the Company entered into an agreement for a 2.5% promissory note in exchange for lending $200,000 to a third party. The principal of $200,000 was due to the Company forty-five (45) days from receipt of the funds. The principal and $5,000 interest receivable was received on July 26, 2017.

During the year ended June30, 2019 and 2018, a total amount of $0 and $4,841, respectively was recorded as interest income related to the two $200,000 notes.

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INCOME TAXES

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 – INCOME TAXES

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law. The Tax Act includes numerous changes to tax laws impacting business, the most significant being a permanent reduction in the federal corporate income tax rate from 34% to 21%. The rate reduction took effect on January 1, 2018.

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% and 27.5% to the net loss before provision for income taxes for the following reasons:

	Year ended June 30,
	2019			2018
Federal Income Tax benefits (expenses) attributable to
Current Operation	$	98,586		$	144,758
Less: Valuation Allowance		(98,586	)		(144,758	)
Net Provision for Federal Income Taxes	$	-		$	-

Net deferred tax assets consist of the following components as of:

	June 30,			June 30,
	2019				2018
Deferred tax assets	$	275,215		$	176,629
Less: valuation allowance		(275,215	)		(176,629	)
Deferred tax assets, net	$	-		$	-

At June 30, 2019 and 2018, the Company had $1,757,257 and $1,289,249, respectively of the U.S. net operating losses (the “U.S. NOLs”), which begin to expire beginning in 2036. NOLs generated in tax years prior to June 30, 2018, can be carryforward for twenty years, whereas NOLs generated after June 30, 2018 can be carryforward indefinitely.

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Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Oct. 14, 2019	Dec. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Almost Never Films Inc.
Entity Central Index Key	0001422768
Trading Symbol	hlwd
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		5,798,765
Entity Public Float			$ 0
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false

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Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid in Capital	Accumulated Deficit	Non-controlling Interest	Total
Balance at Jun. 30, 2017	$ 4,756	$ 928,740	$ (945,257)		$ (11,761)
Balance (shares) at Jun. 30, 2017	4,755,524
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for cash	$ 406	405,594			406,000
Common stock issued for cash (in shares)	406,000
Common shares issued to settle note payable and accrued interest	$ 83	132,354			132,437
Common shares issued to settle note payable and accrued interest (in shares)	83,822
Common shares issued for consulting services	$ 125	139,875			140,000
Common shares issued for consulting services (in shares)	125,000
Common shares issued to settle accounts payable	$ 44	69,308			69,352
Common shares issued to settle accounts payable (in shares)	43,894
Common stock Retired	$ (85)	(19,915)			(20,000)
Common stock Retired (shares)	(85,475)
Net loss			(343,992)		(343,992)
Balance at Jun. 30, 2018	$ 5,329	1,655,956	(1,289,249)		372,036
Balance (shares) at Jun. 30, 2018	5,328,765
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares issued for consulting services	$ 450	224,550			225,000
Common shares issued for consulting services (in shares)	450,000
Net loss			(466,237)	$ (1,610)	(467,847)
Balance at Jun. 30, 2019	$ 5,779	$ 1,880,506	$ (1,755,486)	$ (1,610)	$ 129,189
Balance (shares) at Jun. 30, 2019	5,778,765

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)		12 Months Ended
	Jul. 05, 2017	Jun. 30, 2019	Jun. 30, 2018
Concentration Of Revenues [Line Items]
Concentration of revenue		$ 354,398	$ 1,799,471
Percentage of subsidiaries		90.00%
FDIC insurance uninsured amount		$ 250,000
Percentage of revenue from one client		10.00%
Stock repurchased and forfeited shares during the period	85,475		85,475
Net Income (Loss) Attributable to Parent		$ (467,847)	$ (343,992)
Accumulated deficit		(1,755,486)	$ (1,289,249)
Benefit of qualifying film production activities recorded		700,000
Pureflix
Concentration Of Revenues [Line Items]
Concentration of revenue		700,000
MVE Productions
Concentration Of Revenues [Line Items]
Concentration of revenue		$ 1,778,346

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DEFERRED FILM REVENUE (Detail Textuals) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Deferred Revenue Arrangement [Line Items]
Deferred film revenue	$ (1,445,073)	$ 1,799,471
Production services agreement with MVE productions | Christmas Camp LLC
Deferred Revenue Arrangement [Line Items]
Deferred film revenue	879,112
Production services agreement with MVE productions | Last Vermont Christmas LLC
Deferred Revenue Arrangement [Line Items]
Deferred film revenue	899,234
Production services agreement with MVE productions | Country Christmas LLC
Deferred Revenue Arrangement [Line Items]
Deferred film revenue	$ 354,398

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DEFERRED FILM REVENUE

12 Months Ended

Jun. 30, 2019

Deferred Film Revenue [Abstract]

DEFERRED FILM REVENUE

NOTE 5 – DEFERRED FILM REVENUE

On March 27, 2018, the Company entered into a Production Services Agreement with MVE Productions, LLC to provide production services for a film. In relation to the film, the Company created a Limited Liability Corporation, ‘Christmas Camp LLC.’ The Production Services Agreement was planned to run from April 9, 2018 to August 27, 2018. As of February 28, 2019, all criteria had been met in order for the Company to recognize revenue. During the year ended June 30, 2019 deferred revenue of $879,112 has been recognized as revenues.

On March 27, 2018, the Company entered into a Production Services Agreement with MVE Productions, LLC to provide production services for a film. In relation to the film, the Company created a Limited Liability Corporation, ‘Last Vermont Christmas LLC.’ The Production Services Agreement was planned to run from April 9, 2018 to September 28, 2018. As of March 18, 2019, all criteria had been met in order for the Company to recognize revenue. During the year ended June 30, 2019 deferred revenue of $899,234 has been recognized as revenues.

On June 19, 2018, the Company entered into a Production Services Agreement with MVE Productions, LLC to provide production services for a film. In relation to the film, the Company created a Limited Liability Corporation, ‘Country Christmas LLC.’ The Production Services Agreement will run from June 25, 2018 to October 15, 2018. The agreement is still ongoing as of the date of this filing. The Company has not recognized any film revenue for the year ended June 30, 2019. As of June 30, 2019, the Company has recorded $354,398 of deferred revenue in relation to this film.

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SHARE CAPITAL

12 Months Ended

Jun. 30, 2019

Equity [Abstract]

SHARE CAPITAL

NOTE 9 – SHARE CAPITAL

Common Stock

On July 5, 2017, the Company repurchased and cancelled 85,475 shares of common stock of the company for $20,000.

On August 9, 2017, the Company has approved a 1 for 40 reverse split of its issued and outstanding common stock. The common stock accounts and all share related balances have been applied retroactively for all periods presented.

On September 11, 2017, the Company amended the Articles of Incorporation to decrease the authorized capital to 25,000,000 shares of common stock.

During the year ended June 30, 2018, the Company entered into four share purchase agreements with four investors for 406,000 common shares at $1 per share. The shares were issued during the year ended June 30, 2018.

During the year ended June 30, 2018, the Company issued 83,822 common shares to settle $132,437 of principal note payable and accrued interest.

During the year ended June 30, 2018, the Company issued 43,894 common shares to settle $69,352 of accounts payable.

During the year ended June 30, 2018, the Company issued 125,000 common shares for consulting services, valued at $140,000.

On October 17, 2018, the Company issued 250,000 and 200,000 common shares at $0.50 for consulting services, to two individuals, valued at $125,000, and $100,000, respectively.

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Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, shares authorized	25,000,000	25,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	5,778,765	5,328,765
Common stock, shares outstanding	5,778,765	5,328,765
Series A Preferred stock
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

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ORGANIZATION AND OPERATIONS

12 Months Ended

Jun. 30, 2019

Organization, Operations and Basis of Accounting [Abstract]

ORGANIZATION AND OPERATIONS

NOTE 1 – ORGANIZATION AND OPERATIONS

Nature of the Business

Almost Never Films Inc. (the “Company”) was originally incorporated in Nevada in October 2007 as Smack Sportswear (“Smack”), which originally manufactured and sold performance and lifestyle based indoor and sand volleyball apparel and accessories. The Company is now an independent film company focused on film production, finance and production related services for movies under budgets of $35 million. The Company’s common stock are currently traded on QTCQB under the symbol of “HLWD.”

Share Exchange and Recapitalization

On January 15, 2016, Smack entered into a share exchange agreement with Almost Never Films Inc., a private company incorporated in Indiana on July 8, 2015, and its two shareholders, Danny Chan and Derek Williams.

Pursuant to the agreement, Smack issued 1,000,000 shares of our Series A Convertible Preferred Stock to Mr. Chan and Mr. Williams in exchange for all 2,500,000 shares of issued and outstanding common stock of Almost Never Films Inc. (Indiana). As a result of the share exchange, Almost Never Films Inc. (Indiana) became Smack’s wholly-owned subsidiary, and Mr. Chan and Mr. Williams acquired a controlling interest in the Company.

The share exchange was accounted for as a “reverse acquisition,” and resulted in a recapitalization. Almost Never Films Inc. (Indiana) is deemed to be the acquirer for accounting purposes. The assets acquired and liabilities assumed were $6,566 and $598,869, respectively. Consequently, the assets and liabilities and the historical operations that will be reflected in the financial statements prior to the share exchange will be those of Almost Never Films Inc. (Indiana) and will be recorded at the historical cost basis of Almost Never Films Inc. (Indiana), and the combined financial statements after completion of the share exchange include the assets and liabilities of Almost Never Films Inc. (Indiana), historical operations of Almost Never Films Inc. (Indiana), and operations of Almost Never Films Inc. (Indiana) from the closing date of the share exchange. As a result of the issuance of the shares of our Series A Convertible Preferred Stock pursuant to the share exchange, a change in control of the Company occurred as of the date of consummation of the share exchange. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization. The Company has not yet generated any revenue since inception.

On February 29, 2016, the stockholders of Smack voted to amend the Articles of Incorporation of the Company to (i) increase the authorized capital of the Company to 5,000,000 shares of common stock and (ii) to change the name of the Company to “Almost Never Films Inc.” which took effect on March 2, 2016.

On August 9, 2017, the Company has approved a 1 for 40 reverse split of its issued and outstanding common stock. The common stock accounts and all share related balances have been be applied retroactively for all periods presented.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2019

Summary of Significant Accounting Policies [Abstract]

Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Team Sports Superstore (Inactive) and Almost Never Films Inc. (Indiana) and FWIL, LLC (Indiana), and its 90 % owned subsidiaries, One HLWD KY LLC (Kentucky), Two HLWD KY LLC (Kentucky) and Three HLWD KY (Kentucky), LLC, as well as the following entities, which are 100 % owned: Virginia Christmas, LLC (New York), Christmas Camp, LLC (New York), and Country Christmas, LLC (Ohio). All significant intercompany transactions and balances have been eliminated in consolidation.

Basis of Presentation

Basis of Presentation

The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing the fair value of common stock issued for services, film costs, among others. Actual results could differ from these estimates.

Cash

Cash

Cash includes demand deposits with banks or other financial institutions. All cash balances are hold by major banking institutions.

Concentration of Risk

Concentration of Risk

The Company maintains its cash with a financial institution, and at times, amounts may exceed federally insured limits. Currently the FDIC insurance coverage limit is $250,000, and the Company is potentially exposed to no un-insured cash balances. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.

Concentration of Revenues

Concentration of Revenues

The Company’s concentration of revenue for individual customers above 10% are as follows:

· Pureflix: $700,000

· MVE Productions, LLC: $1,778,346

Film Costs, net

Film Costs, net

The Company records film costs in accordance with ASC – 926 - Entertainment – Films. Film costs include direct production costs, production overhead and acquisition costs for both motion picture and television productions and are stated at the lower of unamortized cost or estimated fair value and classified as noncurrent assets. The Company qualifies for certain government programs that provide incentives earned in regards to expenditures on qualifying film production activities. The incentives recorded as an offset to the related asset balance. Estimates used in calculating the fair value of the film costs are based upon assumptions about future demand and market conditions and are reviewed on a periodic basis. During the year ended June 30, 2019, the Company recorded the benefit of qualifying film production activities of $700,000.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.

In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 – inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

As of June 30, 2019, the balance reported for cash and accounts receivable approximates its fair value because of its short maturities. Notes payable are recorded at agreed values. Debt balances are stated at historical amounts less principal payments, which approximate fair market value. Promissory notes receivable, loan receivable and promissory notes payable are stated at historical amounts less principal payments. The Company believes interest rates in its debt agreements are commensurate with lender risk profiles for similar companies.

Revenue Recognition

Revenue Recognition

In May 2014, the FASB issued new accounting guidance related to revenue from contracts with customers. The core principle of the Standard is that recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new guidance requires that companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has chosen to early adopt and apply the standards beginning in the fiscal year ended June 30, 2018, using the modified retrospective approach, which applies the new standard to contracts that are not completed as of the date of adoption. The Company concluded that no adjustment to the opening balance of retained earnings was required upon the adoption of the new standard.

The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.

When the Company enters into a contract, the Company analyses the services required in the contract in order to identify the required performance obligations which would indicate the Company has met and fulfilled its obligations. For the current contracts in place, the Company has identified performance obligations as one single event, the sign-off by both parties that production is completed and the product (film) is ready for distribution. To appropriately identify the performance obligations, the Company considers all of the services required to be satisfied per the contract, whether explicitly stated or implicitly implied. The Company allocates the full transaction price to the single performance obligation being satisfied.

The Company recognizes revenue when the customer confirms to the Company that all of the terms and conditions of the contract has been met, and the sign-off of the project has been completed. The Company derives its revenues from the follows:

Production Service Agreement Revenue is related to films where the Company has been engaged as an independent contractor to provide production services and other elements related to production for individual film projects. Based on the analysis performed, the Company determined that the performance obligations as of June 30, 2019 had been satisfied for two films, and therefore the Company recognized a portion of revenues associated with the Production Service Agreements.

Revenue from self-produced films is related to films where the Company has self-produced certain films along with a third party, with the expectation that these films will be distributed in the future. Based on the analysis performed, the Company determined that the performance obligations as of June 30, 2019 had not been satisfied, and therefore the Company recognized all of revenues associated with the self-produced films.

The Company analyses whether gross sales, or net sales should be recorded, has control over establishing price, and has control over the related costs with earning revenues. The Company has recorded all revenues at the gross price.

Cash payments received are recorded as deferred revenue until the conditions, stated above, of revenue recognition have been met, specifically all obligations have been met as specified in the related customer contract.

Stock Repurchase and Cancellation

Stock Repurchase and Cancellation

During the year ended June 30, 2018, the Company repurchased and cancelled 85,475 shares of common stock. The Company accounted for the transaction in accordance with ASC 505 – Equity – 30 Treasury Stock, Purchase of Treasury Shares or Stock Rights.

Stock Subscription Receivable

Stock Subscription Receivable

The Company has accounted for Stock Subscription Receivable in accordance with ASC – 505 – Equity – 10, and has included the Stock Subscription Receivable balance in equity.

Loss per Share Calculations

Loss per Share Calculations

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. 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. The Company’s diluted loss per share is the same as the basic loss per share for the years ended June 30, 2019, and 2018, as there are no potential shares outstanding that would have a dilutive effect.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, or ASU 2018-07. Under this ASU, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. The Company has early adopted this guidance, specifically related to the tax calculations of consulting services compensation.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee s obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee's right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of ASU 2016-02 will have on the Company's financial statements.

Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

Going Concern

Going Concern

The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the year ended June 30, 2019 the Company had a net loss from operations of $467,847. As of June 30, 2019, the Company has an accumulated deficit of $1,755,486. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company also has promissory notes in default as of June 30, 2019.

The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion and an identification of new business opportunities.

The Company plans on raising the required funds through completion of film projects resulting in revenues, and further potential equity and debt offerings. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern.

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INCOME TAXES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Federal Income Tax benefits (expenses) attributable to Current Operation
Federal Income Tax benefits (expenses) attributable to Current Operation	$ 98,586	$ 144,758
Less: Valuation Allowance	(98,586)	(144,758)
Net Provision for Federal Income Taxes	$ 0	$ 0

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Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Current Assets
Cash and cash equivalents	$ 57,154	$ 270,826
Accounts receivable	583,333
Prepaid expenses and deposits		218,658
Loan receivable	32,000	32,000
Total Current Assets	672,487	521,484
Deferred assets	103,898	137,083
Film costs	428,731	2,535,359
TOTAL ASSETS	1,205,116	3,193,926
Current Liabilities
Accrued liabilities	41,813	87,237
Due to related party	12,000
Deferred film revenue	354,398	1,799,471
Interest payable	117,716	50,182
Other Payable		55,000
Promissory Note Payable	230,000	480,000
Promissory note payable - related party	320,000
Total Current Liabilities	1,075,927	2,471,890
Long-term Liabilities
Promissory note payable - related party		350,000
TOTAL LIABILITIES	1,075,927	2,821,890
Stockholders' Equity
Preferred stock: no par value, 5,000,000 authorized; Series A Preferred stock: 2,000,000 authorized; No shares issued and outstanding
Common stock: 25,000,000 authorized; $0.001 par value 5,778,765 and 5,328,765 shares issued and outstanding respectively.	5,779	5,329
Additional paid in capital	1,880,506	1,655,956
Accumulated deficit	(1,755,486)	(1,289,249)
Total shareholders' equity attributable to Almost Never Films Inc. shareholders	130,799	372,036
Non-controlling interest	(1,610)
Total shareholders' equity	129,189	372,036
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,205,116	$ 3,193,926

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Net loss	$ (467,847)	$ (343,992)
Adjustments to reconcile net loss to net cash used in operating activities:
Consulting expense	258,186	2,917
Loss on settlement of debt		74,075
Changes in operating assets and liabilities:
Accounts receivable	(583,333)
Interest receivable		5,159
Prepaid expenses and deposits	218,658	(202,051)
Film costs	2,106,628	(2,535,359)
Accrued liabilities	(45,424)	89,693
Deferred film revenue	(1,445,073)	1,799,471
Interest payable	67,534	50,323
Other payable	(55,000)	55,000
Net Cash Provided by (Used in) Operating Activities	54,328	(1,004,764)
Cash Flows from Investing Activities:
Issuance of promissory note receivable		(350,000)
Collection of promissory note receivable		750,000
Loan receivable		(32,000)
Net Cash Provided by Investing Activities		368,000
Cash Flows from Financing Activities:
Borrowing from related party	12,000
Proceeds from issuance of promissory note payable		780,000
Proceeds from issuance of promissory note payable - related party	320,000	350,000
Payment of note payable	(250,000)	(500,000)
Payment of promissory note payable - related party	(350,000)	(200,000)
Proceeds from common stock subscribed		406,000
Retirement of common Stock		(20,000)
Net Cash Provided by (Used in) Financing Activities	(268,000)	816,000
Net Increase in Cash and Cash Equivalents	(213,672)	179,236
Cash and Cash Equivalents, beginning of period	270,826	91,590
Cash and Cash Equivalents, end of period	57,154	270,826
Supplemental Disclosure Information:
Cash paid for interest		40,000
Cash paid for income taxes	0	0
Supplemental Non-cash Disclosure:
Deferred consulting expense paid in restricted stock	$ 225,000	140,000
Conversion of debt into common stock		$ 127,716

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SUBSEQUENT EVENTS

12 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 12 – SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date the consolidated financial statements were issued. Based on our evaluation no events have occurred that require disclosure, other than those disclosed below.

On July 16, 2019, the Company received notice that Country Christmas Album has been confirmed as completed and delivered in accordance with the agreement terms.

Subsequent to year end, the Company dissolved CXA Movie, LLC on October 5, 2019. In addition, the Company dissolved FWIL, LLC on September 16, 2019.

Subsequent to June 30, 2019, the Company amended the following terms of promissory notes:

- Promissory note of $150,000, dated February 7, 2018, $15,000 of interest payable to be paid through the issuance of 20,000 common shares. The shares have been issued as of the date of this report.

- Promissory note of $80,000, dated January 4, 2018. Maturity date has been extended to June 30, 2020. Amended interest payable is 10% of the loan payable in common stock of Almost Never Films. The shares have not yet been issued as of the date of this report.

- Promissory note of $100,000, dated February 6, 2018. Maturity date has been extended to June 30, 2020. New principal amount is $50,000.

- Promissory note of $350,000, dated September 19, 2017. Maturity date has been extended to June 30, 2020.

- Promissory note of $150,000, dated October 11, 2017. Maturity date has been extended to June 30, 2020. New principal amount is $50,000 with interest of 10%, as $100,000 has been transfer to a new lender.

- Two new promissory notes of $50,000 and $100,000 were entered, bearing interest at 10%. These new notes replaced amounts due on previously issued promissory notes.

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FILM COSTS, NET

12 Months Ended

Jun. 30, 2019

Film Costs [Abstract]

FILM COSTS, NET

NOTE 4 – FILM COSTS, NET

Film costs are comprised of the following:

	June 30, 2019		June 30, 2018
Independent Self-Produced Film Costs, Net	$	85,475	$	982,175
Capitalized Film Costs covered under Production Service Agreements, Net		343,256		1,553,184
Total Film Costs	$	428,731	$	2,535,359

Film costs include salaries and wages, and all other direct costs associated with the motion pictures and television productions. In addition, the Company qualifies for certain government programs that provide incentives earned in regards to expenditures on qualifying film production activities. The incentives recorded as an offset to the related asset balance.

As of June 30, 2019, the Company performed fair value measurements related to film costs and determined that there were no indicators of impairment. During the year ended June 30, 2019, the Company did not recognize impairment loss.

On November 10, 2017 the Company executed a First Amendment Agreement to its 6x picture Production and Distribution Agreement between Big Film Factory LLC (“Big Film” or “Prodco”) and Pure Flix Entertainment LLC (“PFE”), (the “Agreement”). The Agreement memorializes the understanding with respect to the development, packaging, production, post-production and worldwide distribution of the films intended for initial and primary worldwide exhibition. The Company, will be added as a party to the initial agreement by and between Big Film and PFE, wherever Big Film is referenced in connection with providing production services in conjunction with Big Film as well as providing production capital and cash following each of the first six (6) films produced under the Agreement (“6 Pictures”). Both Prodco and PFE agree to expand the defined role of “Prodco” in the Agreement, to add the Company to that definition, and grant the Company equally the same role and responsibilities heretofore only held by Big Film in connection with the 6 Pictures.

During the year ended June 30, 2019, $2,483,448 of capitalized film costs were expensed as cost of revenues, of which $889,248 related to Last Vermont Christmas LLC, $868,795 related to Christmas Camp LLC, $354,788 related to One HLWD, and $370,617 related to Three HLWD.

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NOTE PAYABLE

12 Months Ended

Jun. 30, 2019

Short-term Debt [Abstract]

NOTE PAYABLE

NOTE 8 – NOTE PAYABLE

In August 2015, Smack entered into an unsecured promissory note agreement with an individual. The agreement allowed Smack to borrow up to $66,613 at an interest rate of 10 percent per year. This $66,613 note was assumed by the Company during the recapitalization. During the year ended June 30, 2018, the Company settled the principal amount of $66,613 and interest payable of $17,209 for a total of $83,822 through issuance of 83,822 common shares. For the year ended June 30, 2019, and 2018, interest expense of $0, and $5,037 were recorded, respectively.

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INCOME TAXES (Details 1) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Deferred tax assets, generated from net operating loss at statutory rates
Deferred tax assets, generated from net operating loss at statutory rates	$ 275,215	$ 176,629
Less: Valuation Allowance	(275,215)	(176,629)
Deferred tax assets, net	$ 0	$ 0

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ORGANIZATION, OPERATIONS AND BASIS OF ACCOUNTING (Detail Textuals)	Aug. 09, 2017 shares	Jan. 15, 2016 USD ($) Shareholder shares	Jun. 30, 2019 USD ($) shares	Jun. 30, 2018 shares	Sep. 11, 2017 shares	Feb. 29, 2016 shares
Organization Operations And Basis Of Accounting [Line Items]
Film production costs | $			$ 35,000,000
Assets acquired | $		$ 6,566
Liabilities assumed | $		$ 598,869
Common stock, shares authorized | shares	25,000,000		25,000,000	25,000,000	25,000,000	5,000,000
Description of common stock reverse stock split	1 for 40
Share exchange agreement | Smack Sportswear ("Smack") | Mr. Chan and Mr. Williams | Series A Convertible Preferred Stock
Organization Operations And Basis Of Accounting [Line Items]
Number of shareholders | Shareholder		2
Number of preferred stock converted | shares		1,000,000
Number of common stock issued in conversion of preferred stock | shares		2,500,000

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FILM COSTS, NET (Detail Textuals)	12 Months Ended
	Jun. 30, 2019 USD ($)
Disclosure Of Film Costs [Line Items]
Capitalized film costs expensed as cost of revenues	$ 2,483,448
Last Vermont Christmas LLC
Disclosure Of Film Costs [Line Items]
Capitalized film costs expensed as cost of revenues	889,248
Christmas Camp LLC
Disclosure Of Film Costs [Line Items]
Capitalized film costs expensed as cost of revenues	868,795
One HLWD
Disclosure Of Film Costs [Line Items]
Capitalized film costs expensed as cost of revenues	354,788
Three HLWD
Disclosure Of Film Costs [Line Items]
Capitalized film costs expensed as cost of revenues	$ 370,617