10-K 1 form10-k.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
  For the fiscal year ended December 31, 2018

 

OR

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
  For the transition period from                       to                        

 

Commission file number: 000-55516

 

Original Source Music, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada   20-8594615

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

8547 E. Arapahoe Road #J453    
Greenwood Village, CO, 80112   (852) 9095 2949
(Address of Principal Executive Offices)   (Registrant’s telephone number)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act: $0.001 par value

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act. [  ] Yes [X] No

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. [  ] 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 (section 232.406 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 [X] No [  ]

 

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. [X] Yes [  ] No

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [  ]

 

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

 

Large accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] Smaller reporting company [X]
    Emerging growth company [X]

 

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 [X] No [  ]

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. The market value of the registrant’s voting common stock held by non-affiliates of the registrant was approximately $0.

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. The number of shares outstanding of the registrant’s only class of common stock, as of March 25, 2019 was 5,073,000 shares. 

 

No documents are incorporated into the text by reference.

 

 

 

   
   

 

Throughout this Report on Form 10-K, the terms the “Company,” “we,” “us” and “our” refer to Original Source Music, Inc., and “our board of directors” refers to the board of directors of Original Source Music Inc.

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

 

This Annual Report on Form 10-K contains forward-looking statements regarding, among other things, our future operating results and financial position, our business strategy, and other objectives for our future operations. The words “anticipate,” “believe,” “intend,” “expect,” “may,” “estimate,” “predict,” “project,” “potential” and similar expression are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. There are a number of important risks and uncertainties that could cause our actual results to differ materially from those indicated by forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that we may make.

 

You should read this Report on Form 10-K and the documents that we have filed as exhibits to this Report on Form 10-K completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Report on Form 10-K are made as of the date of this Report on Form 10-K, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

 

   
   

 

Table of Contents

 

    Pages
     
PART I    
Item 1. Business 4
Item 1A. Risk Factors 5
Item 2. Properties 5
Item 3. Legal Proceedings 5
Item 4. Mine Safety Disclosures 5
     
PART II    
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 6
Item 6. Selected Financial Data 6
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 6
Item 7A. Quantitative and Qualitative Disclosures about Market Risk 7
Item 8. Financial Statements and Supplementary Data 8
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 20
Item 9A. Controls and Procedures 20
Item 9B. Other Information 20
     
PART III    
Item 10. Directors, Executive Officers and Corporate Governance 21
Item 11. Executive Compensation 22
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 22
Item 13. Certain Relationships and Related Transactions, and Director Independence 22
Item 14. Principal Accountant Fees and Services 23
     
PART IV    
Item 15. Exhibits, Financial Statement Schedules 24
     
Signatures   25

 

 3 
   

 

PART I

 

ITEM 1. BUSINESS

 

Organizational History

 

We were incorporated under the laws of the State of Nevada on August 20, 2009. We were formed to license songs to the television and movie industry. We were a wholly owned subsidiary of Original Source Entertainment, Inc., a publicly traded Nevada corporation. On February 5, 2014, the board of directors of Original Source Entertainment authorized the spin-off of the Company to shareholders of record as of February 25, 2014.

 

The spin-off was accomplished in connection with a change of control of Original Source Entertainment. Under the terms of the spin-off, the registrant’s common shares, par value $0.001 per share, were distributed on a pro-rata basis to each holder of Original Source Entertainment’s common shares on the record date without any consideration or action on the part of such holders, and the holders of Original Source Entertainment’s common shares as of the record date became owners of 100 percent of our common shares. The spin-off was consummated upon the satisfactory resolution of all comments from the Securities and Exchange Commission to the registration statement on Form 10 and upon its effectiveness. There was no material change in the registrant’s operations as a result of the spin-off.

 

On March 19, 2018, the Company’s board of directors and officer sold their interest in the Company to Big Emperor, Ltd. a British Virgin Islands company (“Big Emperor”). The total number of shares purchased was 3,500,000 shares of common stock (the “Shares”) of Original Source Music, Inc. (the “Company”) for $93,800 (the “Transaction”). Of the Shares, 3,000,000 were acquired from Lecia L. Walker (“Ms. Walker”), the Company’s Chief Executive Officer (“CEO”) and a director, and 500,000 were acquired from Esther Lynn Atwood (“Ms. Atwood”), a Company director. The Shares represent approximately 69% of the Company’s issued and outstanding common stock.

 

Along with the Transaction, the Company’s board of directors appointed Tsang Chi Hin, age 59, as its CEO, and as director to hold office until the next annual meeting of shareholders and until his successor is duly elected and qualified or until his resignation or removal. Following the appointment of Mr. Tsang as an officer and director of the Company, Ms. Walker resigned her position as our CEO and director and Ms. Atwood resigned her position as director. Both resignations are effective as of March 19, 2018.

 

With the proceeds from the acquisition of the Shares, Ms. Walker and Ms. Atwood agreed to pay $64,410 to holders of promissory notes issued by the Company in full satisfaction of principal and interest in all outstanding promissory notes issued by the Company. On March 19, 2018, all the Promissory Notes K through Promissory Note W, inclusive, were paid in full. Ms. Walker and Ms. Atwood have waived all amounts due by the Company at March 19, 2018.

 

The Company has decided to not pursue its original business plan and is currently in the process of evaluating new business opportunities. The CEO of the Company is exploring such options. Such opportunities may take many forms, including the acquisition of an existing business or the acquisition of assets to establish subsidiary businesses. All risks inherent in new and inexperienced enterprises are inherent in the Company’s business.

 

We currently have no employee other than our officer, who is also our director.

 

We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. We have not made any significant purchase or sale of assets, nor has the registrant been involved in any mergers, acquisitions or consolidations. Neither the registrant, nor its officers, directors, promoters or affiliates, has had preliminary contact or discussions with, nor do we have any present plans, proposals, arrangements or understandings with any representatives of the owners of any business or company regarding the possibility of an acquisition or merger.

 

Business

 

Initially, the registrant had a primary focus on licensing music to television and film.   The Company had decided to cease to conduct any business during the last two years.

 

 4 
   

 

License and Assignment Agreement:

 

In 2000, Lecia L. Walker assisted in launching Private Wavs, a successful music library which licenses music to television and film, along with her husband at that time. Part of her role in that endeavor was to do the market research, product and packaging design, sales and marketing. In 2007, she sold her interest in Private Wavs and in 2008, started a new music library under a DBA of Original Source Music, Inc. Since that time she has placed more than 1,100 songs under contract.

 

On August 21, 2009, Lecia Walker granted a license for a period of ten (10) years for the entire list of songs to Original Source Entertainment, Inc. under a License and Assignment Agreement. Pursuant to the License and Assignment Agreement, Ms. Walker was issued 3,000,000 common shares of Original Source Entertainment. On August 25, 2009, the board of directors of Original Source Entertainment authorized the assignment of its rights under the License and Assignment Agreement to the registrant, its then wholly owned subsidiary. Effective May 31, 2010, Ms. Walker granted the Company an option to extend the term of the original license for an additional 10 year period to expire August 25, 2029.

 

The Company is currently not conducting any business. It does not possess products or services, distribution methods, competitive business positions, or major customers. The Company does not possess any unexpired patents or trademarks and all of its licensing and royalty agreements from the inventions it sought to market in the past have since expired, and are not currently valid.

 

The selection of a business opportunity in which to participate is complex and risky. Additionally, as the Company has only limited resources, it may be difficult to find good opportunities. There can be no assurance that the Company will be able to identify and acquire any business opportunity which will ultimately prove to be beneficial to the Company and its stockholders. The Company will select any potential business opportunity based on management’s business judgment.

 

The activities of the Company are subject to several significant risks which arise primarily as a result of the fact that the Company has no specific business and may acquire or participate in a business opportunity based on the decision of management which potentially could act without the consent, vote, or approval of the Company’s stockholders. The risks faced by the Company are further increased as a result of its lack of resources and its inability to provide a prospective business opportunity with significant capital.

 

ITEM 1A. RISK FACTORS

 

Not applicable to smaller reporting companies.

 

ITEM 2. PROPERTIES

 

The registrant’s current address is 8547 E Arapahoe Road #J453, Greenwood Village, CO, 80112. Should the registrant be required to obtain suitable facilities in the future, it believes it can obtain the required facilities at competitive rates.

 

ITEM 3. LEGAL PROCEEDINGS

 

The registrant is aware of no pending or threatened litigation.

 

There are no material proceedings to which any director, officer or affiliate of the Company, or any owner of record or beneficially of more than five percent of any class of voting securities of the Company, or any associate of any such director, officer, affiliate of the Company, or security holder is a party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company or any of its subsidiaries.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

 5 
   

 

PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Item 5(a)

 

  a) Market Information. Our common stock is not listed on any national or international stock exchange nor is it quoted by OTC Markets.
     
    There is no public trading market for our common stock and there is no guarantee any trading market will develop.
     
  b) Holders. At March 25, 2019, there were approximately 36  shareholders of the registrant.
     
  c) Dividends. Holders of our common stock are entitled to receive such dividends as may be declared by its board of directors. The registrant does not anticipate that it will declare any dividends. All profit will be used for continuing operations.
     
  d) Securities authorized for issuance under equity compensation plans. No securities are authorized for issuance by the registrant under equity compensation plans.
     
  e) Performance graph. Not applicable.
     
  f) Sale of unregistered securities. None.

 

Item 5(b) Use of Proceeds. Not applicable.
   
Item 5(c) Purchases of Equity Securities by the issuer and affiliated purchasers. None.
   
ITEM 6. SELECTED FINANCIAL DATA

 

Not applicable to a smaller reporting company.

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Trends and Uncertainties

 

The Company is not actively engaged in conducting any business. Rather, the Company is in the process of investigating potential business ventures which, in the opinion of management, will provide a source of eventual profit to the Company.

 

There are no other known trends, events or uncertainties that have, or are reasonably likely to have, a material impact on our short term or long term liquidity. Sources of liquidity will come from sales of our products and services. There are no material commitments for capital expenditure at this time. There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on the net sales or revenues or income from continuing operations. There are no significant elements of income or loss that do not arise from the Company’s continuing operations. There are no other known causes for any material changes from period to period in one or more line items of our financial statements.

 

Capital and Sources of Liquidity

 

For the year ended December 31, 2018, we had a net loss of $24,346. We made an adjustment of $9,459 for prepayment and accrued expenses. As a result, we had net cash used in operating activities of $14,887 for the year ended December 31, 2018.

 

For the year ended December 31, 2017, we had a net loss of $34,079. We made an adjustment of $6,446 for the amortization of debt discount and $4,000 for prepayment and accrued expenses. As a result, we had net cash used in operating activities of $23,633 for the year ended December 31, 2017.

 

 6 
   

 

For the years ended December 31, 2018 and 2017, we did not pursue any investing activities.

 

For the year ended December 31, 2018, we received $14,320 from advance from related party. As a result, we had net cash provided by financing activities of $14,320 for the year ended December 31, 2018.

 

For the year ended December 31, 2017, we received $23,358 from an advance on convertible notes payable from related parties. As a result, we had net cash provided by financing activities of $23,358 for the year ended December 31, 2017.

 

Results of Operations

 

For the year ended December 31, 2018, we recorded revenues of $10. We paid general and administrative expenses of $1,436 and professional fees of $24,037. We recorded other income of $1,117 consisting of the written-off of loans to the Company because of cancellation of loan to the Company. As a result, we recorded a net loss of $24,346 for the year ended December 31, 2018.

 

For the year ended December 31, 2017, we recorded revenues of $356. We paid general and administrative expenses of $2,991 and professional fees of $24,998. We paid interest expenses to a related party of $6,446. As a result, we recorded a net loss of $34,079 for the year ended December 31, 2017.

 

The $9,733 difference in net loss between the years ended December 31, 2018 and 2017 is due to a decrease in revenue, interest expenses to a related party and general and administrative expenses while an increase in other income during the year ended December 31, 2018.

 

Off-Balance Sheet Arrangements

 

The registrant had no material off-balance sheet arrangement as of December 31, 2018.

 

Contractual Obligations

 

The registrant has no material contractual obligation.

 

New Accounting Pronouncements

 

The registrant has adopted all recently issued accounting pronouncements.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

The registrant does not have any significant market risk exposure.

 

 7 
   

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

ORIGINAL SOURCE MUSIC, INC.

Index to

Financial Statements

 

  Pages
   
Report of Independent Registered Public Accounting Firm 9
   
Audited Balance Sheets as of December 31, 2018 and 2017 10
   
Audited Statements of Operations for the years ended December 31, 2018 and 2017 11
   
Audited Statement of Changes in Shareholders’ Deficit for the years ended December 31, 2018 and 2017 12
   

Audited Statements of Cash Flows for the years ended December 31, 2018 and 2017

13
   

Notes to Audited Financial Statements for the years ended December 31, 2018 and 2017

14

 

 8 
   

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Board of Directors

Original Source Music, Inc.

Greenwood Village, Colorado

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Original Source Music, Inc. as of December 31, 2018 and 2017 and the related statements of operations, statements of changes in shareholders’ deficit and statements of cash flows for the years then ended December 31, 2018 and 2017, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Original Source Music, Inc. as of December 31, 2018 and 2017 and the results of its operations and cash flows for the years ended December 31, 2018 and 2017 in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered losses from inception and has a limited operating history which raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinions.

 

/s/ Lo and Kwong C.P.A. Company Limited

 

Suites 313-316

3/F., Shui On Centre

6-8 Harbour Road

Wanchai, Hong Kong

April 2, 2019

 

 9 
   

 

ORIGINAL SOURCE MUSIC, INC.

Balance Sheets

December 31, 2018 and 2017

 

  

December 31,

2018

  

December 31,

2017

 
   $   $ 
ASSETS          
           
Current Assets          
Prepayment   -    500 
Cash   -    567 
Total Current Assets   -    1,067 
           
TOTAL ASSETS   -    1,067 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
Current Liabilities          
Accounts payable and accrued expenses   13,559    4,600 
Due to a related party   14,320    - 
Notes payable-related party   -    64,410 
Total Liabilities   27,879    69,010 
           
Stockholders’ Deficit          
Preferred stock, $0.001 par value; 5,000,000 shares
authorized; none issued and outstanding
   -    - 

Common stock, $0.001 par value; 45,000,000 shares

authorized 5,073,000 shares issued and outstanding

   5,073    5,073 
Additional paid-in capital   37,070    37,070 
Other reserve   64,410    - 
Accumulated deficit   (134,432)   (110,086)
Total Stockholders’ Deficit   (27,879)   (67,943)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   -    1,067 

 

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

 

 10 
   

 

ORIGINAL SOURCE MUSIC, INC.

Statements of Operations

For the years ended December 31, 2018 and 2017

 

  

Year ended

December 31,

2018

  

Year ended

December 31,

2017

 
   $   $ 
Revenue   10    356 
           
Other income   1,117    - 
           
Operating expenses:          
General and administrative expense   1,436    2,991 
Professional fees   24,037    24,998 
Total operating expenses   25,473    27,989 
           
Loss from operations   (24,346)   (27,633)
           
Interest expense to a related party   -    (6,446)
           
Loss before provision for income taxes   (24,346)   (34,079)
           
Income tax provision   -    - 
           
Net loss   (24,346)   (34,079)
           
Net loss per common share - basic and diluted   (0.00)*   (0.01)
           
    Shares    Shares 
           
Weighted average number of common shares outstanding- basic and diluted   5,073,000    5,073,000 

 

*denotes net loss per common share of less than $0.01 per share.

 

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

 

 11 
   

 

ORIGINAL SOURCE MUSIC, INC.

Statement of Changes in Shareholders’ Deficit

For the years ended December 31, 2018 and 2017

 

    Shares     Amount ($0.001 Par)     Common stock payable
(shares)
   

Common stock payable

(par)

    Paid-in capital     Other
reserve
   

Accumulated

deficit

   

Stockholders’

deficit

 
          $           $     $     $     $     $  
Balances at December 31, 2016        5,073,000       5,073       90,000       90         36,980       -       (76,007 )     (33,864 )
                                                                 
Cancellation of common stock payable for extinguishment of debt     -       -       (90,000 )     (90 )     90       -       -       -  
                                                                 
Net loss for the year     -       -       -       -       -       -       (34,079 )     (34,079 )
                                                                 
Balances at December 31, 2017     5,073,000       5,073       -       -       37,070       -       (110,086 )     (67,943 )
                                                                 
Waiver of amount due to related party     -       -       -       -       -       64,410       -       64,410  
                                                                 
Net loss for the year     -       -       -       -       -       -       (24,346 )     (24,346 )
                                                                 
Balances at December 31, 2018     5,073,000       5,073       -       -       37,070       64,410       (134,432 )     (27,879 )

 

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

 

 12 
   

 

ORIGINAL SOURCE MUSIC, INC.

Statements of Cash Flows

For the years ended December 31, 2018 and 2017

 

  

Year ended December 31,

2018

  

Year ended December 31,

2017

 
   $   $ 
Cash Flows From Operating Activities:          
Net loss   (24,346)   (34,079)
Adjustments to reconcile net loss to net cash used in operating activities:          
Amortization of debt discount on related party notes   -    6,446 
Changes in operating assets and liabilities:          
Prepayment   500    (500)
Accounts payable and accrued expenses   8,959    4,500 
           
Net cash used in operating activities   (14,887)   (23,633)
           
Cash Flows From Financing Activities:          
Advance from related party   14,320    - 
Proceeds from notes payable-related party   -    23,358 
           
Net cash from financing activities   14,320    23,358 
           
Net Decrease In Cash   (567)   (275)
Cash at beginning of period   567    842 
           
Cash at end of period   -    567 
           
Supplemental disclosure of cash flow information:          
Cash paid for:          
Interest   -    - 
           
Income taxes   -    - 
           
Non-Cash Activities          
Professional fees paid by related party   -    1,000 
           
Convertible debt related party exchanged for non-convertible debt-related party   -    14,617 

 

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

 

 13 
   

 

ORIGINAL SOURCE MUSIC, INC.

Notes To The Audited Financial Statements

For the years ended December 31, 2018 and 2017

 

NOTE 1: ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Original Source Music, Inc. (“the Company”, “we”, “us” or “our”) was incorporated in the State of Nevada on August 20, 2009 (“Inception”). The Company was a licensor of songs to the television and music industry for use in television shows or movies and currently it has not commenced operations that have resulted in significant revenue.   The Company has had limited activity and revenue to date.

 

Basis of Preparation of Financial Statements

 

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s year-end is December 31.

 

Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Due to uncertainties inherent in the estimation process, it is possible that these estimates could be materially revised within the next year.

 

Cash and cash equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

 

Fair Value of Financial Instruments

 

FASB ASC 820-10 “Fair Value Measurements” defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This ASC also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

The three levels of the fair value hierarchy are described below:

 

Level 1

 

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

 

Level 2

 

Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable data by correlation or other means.

 

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Level 3

 

Inputs that are unobservable for the assets and liabilities.

 

The carrying value of cash, accounts payable and accused expenses and notes payable-related party approximates their fair value due to their short-term maturity.

 

Income tax

 

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as of December 31, 2018 or December 31, 2017.

 

Revenue recognition

 

The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.

 

Products and services, geographic areas and major customers

 

The Company derives revenue from the licensing of songs to the television and music industry. All fee revenues each year were domestic and to external customers.

 

Advertising costs

 

Advertising costs are expensed as incurred. The Company incurred no advertising cost during the years ended December 31, 2018 or 2017.

 

Basic and Diluted Earnings (Loss) Per Share

 

The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. During year ended December 31, 2018 or 2017, no potentially dilutive convertible notes payable issued and outstanding.

 

The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of licensing songs to the television and music industry for use in television shows or movies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

 

During the year ended December 31, 2017, the debt holders holding 90,000 shares declined to accept the 90,000 shares (see details of promissory note M and promissory note N below in note 3).

 

Recent Accounting Pronouncements

 

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company

 

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NOTE 2: GOING CONCERN

 

The financial statements for the years ended December 31, 2018 and 2017 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has suffered a loss from operations and has negative cash flows from operations, and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

The principal stockholder has undertaken to finance the Company in cash for a “reasonable” period of time for the Company to continue as a going concern, assuming that in such a period of time the Company would be able to restructure its business and restart on a revenue-generating operation to support its continuation. However, it is uncertain as for how long or to what extent such a period of time would be “reasonable”, and there can be no assurance that the financing from the principal stockholder will not be discontinued.

 

These uncertainties may result in adverse effects on continuation of the Company as a going concern. The accompanying financial statements do not include or reflect any adjustments that might result from the outcome of these uncertainties.

 

NOTE 3: PROMISSORY NOTES PAYABLE- RELATED PARTY

 

Note K:

 

On December 31, 2016, a related party loaned the Company $4,920. The note is interest free until December 31, 2017 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note K was paid-in-full during the year ended December 31, 2018.

 

Note L:

 

On December 31, 2016, a related party loaned the Company $1,500. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note L was paid-in-full during the year ended December 31, 2018.

 

Note M:

 

On December 31, 2016, Convertible Promissory Note A in the amount of $3,255 dated December 31, 2014, Convertible Promissory Note B in the amount of $6,000 dated January 21, 2015 and Convertible Promissory Note D in the amount of $3,260 dated September 14, 2015, were cancelled and a new single note was issued to replace the three promissory notes in the amount of $12,515. The new note is payable to a related party, VentureVest Capital Corporation and is due on or before December 31, 2018. The note is interest free until December 31, 2017 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 50,000 shares of the authorized but unissued common stock of the corporation will be issued to VentureVest Capital Corporation within 30 days of the signing of the promissory note valued at par.

 

During the year ended December 31, 2017, VentureVest Capital Corporation declined to accept 50,000 shares of the authorized but unissued common stock of the Company. Accordingly, the paid-in capital was increased by $50.

 

Note M was paid-in-full during the year ended December 31, 2018.

 

Note N:

 

On December 31, 2016, Convertible Promissory Note C in the amount of $6,000 dated March 30, 2015 and, Convertible Promissory Note E in the amount of $1,500 dated June 11, 2015, were cancelled and a new single note was issued to replace the two promissory notes in the amount of $7,500. The new note is payable to Terayco Enterprises Ltd., a related party and is due on or before December 31, 2018. The note is interest free until December 31, 2017 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 40,000 shares of the authorized but unissued common stock of the corporation will be issued to Terayco Enterprises Ltd. within 30 days of the signing of the promissory note valued at par.

 

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During the year ended December 31, 2017, Terayco Enterprises Ltd. declined to accept 40,000 shares of the authorized but unissued common stock of the Company. Accordingly, the paid-in capital was increased by $40.

 

Note N was paid-in-full during the year ended December 31, 2018.

 

Note P:

 

On March 21, 2017, a related party loaned the Company $2,600. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note P was paid-in-full during the year ended December 31, 2018.

 

Note Q:

 

On June 29, 2017, a related party loaned the Company $6,323. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note Q was paid-in-full during the year ended December 31, 2018.

 

Note R:

 

On December 31, 2017 Convertible Promissory Note F in the amount of $5,703 dated February 16, 2016 and, Convertible Promissory Note G in the amount of $7,114 dated May 6, 2016 and Convertible Promissory Note I in the amount of $300 dated June 13, 2016, were cancelled and a new single note was issued to replace the three promissory notes in the amount of $13,117. The new note is payable to a related party, VentureVest Capital Corporation and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 100,000 shares of the authorized but unissued common stock of the corporation will be issued to VentureVest Capital Corporation within 30 days of the signing of the promissory note valued at par.

 

Note R was paid-in-full during the year ended December 31, 2018.

 

Note S:

 

On December 31, 2017 Convertible Promissory Note J in the amount of $1,500 dated July 7, 2016 was cancelled and a new single note was issued to replace the promissory note. The new note is payable to a related party, VentureVest Capital Corporation and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 10,000 shares of the authorized but unissued common stock of the corporation will be issued to VentureVest Capital Corporation within 30 days of the signing of the promissory note valued at par.

 

Note S was paid-in-full during the year ended December 31, 2018.

 

Note T:

 

On July 22, 2017, a related party loaned the Company $3,800. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note T was paid-in-full during the year ended December 31, 2018.

 

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Note U:

 

On August 25, 2017, a related party loaned the Company $2,260. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note U was paid-in-full during the year ended December 31, 2018.

 

Note V:

 

On October 4, 2017, a related party loaned the Company $3,875. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note V was paid-in-full during the year ended December 31, 2018.

 

Note W:

 

On December 24, 2017, a related party loaned the Company $4,500. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity.

 

Note W was paid-in-full during the year ended December 31, 2018.

 

NOTE 4: INCOME TAXES

 

As of December 31, 2017, the Company had net operating loss carry forwards of $110,086 that may be available to reduce future years’ taxable income through 2036. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

 

   Year ended December 31, 2018   Year ended December 31, 2017 
   $   $ 
Federal income tax benefit attributable to:          
Current operations   (5,322)   (7,156)
Less: change in valuation allowance   5,322    7,156 
           
Net provision for Federal income taxes   -    - 

 

The Tax Cuts and Jobs Act was signed into law on December 22, 2017 and significantly changes tax law in the United States by, among other items, reducing the federal corporate income tax rate from a maximum of 34% to 21% (effective January 1, 2018). The cumulative tax effect at the expected rate of significant items comprising our net deferred tax amount is as follows:

 

   December 31, 2018   December 31, 2017 
   $   $ 
Deferred tax asset attributable to:          
Net operating loss carryover   28,440    23,118 
Less: valuation allowance   (28,440)   (23,118)
           
Net deferred tax asset   -    - 

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $110,086 as of December 31, 2017 for Federal income tax reporting purposes are subject to annual limitations should a change in ownership occur.

 

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NOTE 5: OTHER RELATED PARTY TRANSACTIONS

 

For the year ended December 31, 2017, $1,000 of professional fees associated with the preparation of the Company’s 2017 financial statements were paid by a related party on behalf of the Company. These fees were recorded as contributed capital by a related party since no consideration was paid, or will be paid, in exchange for these payments.

 

For the year ended December 31, 2017, Ms. Walker and Ms. Atwood agreed to pay $64,410 to holders of promissory notes issued by the Company in full satisfaction of principal and interest in all outstanding promissory notes issued by the Company. On March 19, 2018, all the Promissory Notes K through Promissory Note W, inclusive, were paid-in-full. Ms. Walker and Ms. Atwood have waived all amounts due by the Company at March 19, 2018.

 

NOTE 6: SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, “Subsequent Events” the Company has analyzed its operations subsequent to December 31, 2018 to the date these financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

 

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None.

 

ITEM 9A.CONTROLS AND PROCEDURES

 

Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures:

 

We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to insure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, or the persons performing similar functions, to allow timely decisions regarding required disclosure.

 

Under the supervision and with the participation of our CEO and CFO, or the persons performing similar functions, our management has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report. Based on that evaluation, our CEO and CFO, or the persons performing similar functions, concluded that our disclosure controls and procedures were effective as of December 31, 2018.

 

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 Rule 13a-15(f) and 15d-15(f) under the Exchange Act, for the Company. Our internal control over financial reporting is the process designed by and under the supervision of our CEO and CFO, or the persons performing similar functions, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external reporting in accordance with accounting principles generally accepted in the United States of America. Management has determined that our internal control over financial reporting was not effective as of December 31, 2018.

 

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.

 

Management has evaluated the effectiveness of our internal control over financial reporting using the criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. We were not required to have, nor have we, engaged our independent registered public accounting firm to perform an audit of internal control over financial reporting pursuant to the rules of the Commission that permit us to provide only management’s report in this annual report.

 

Evaluation of Changes in Internal Control over Financial Reporting:

 

Under the supervision and with the participation of our CEO and CFO, or those persons performing similar functions, our management has evaluated changes in our internal controls over financial reporting that occurred during the year ended December 31, 2018. Based on that evaluation, our CEO and CFO, or those persons performing similar functions, did not identify any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

ITEM 9B. OTHER INFORMATION

 

None.

 

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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Our directors and executive officers and their ages as of March 25, 2019 are as follows:

 

Name   Age   Position
         
Tsang Chi Hin   59   President, Director

 

Tsang Chi Hin

 

Tsang Chi Hin was appointed President and director effective as of March 19 2018. He is currently the Chairman of Honesty Health Industry Limited, a Hong Kong limited company that develops and sells health products throughout Hong Kong and mainland China. He has held this role since January 1, 2015.

 

Mr. Tsang was the Co-founder of Proactive Technology Holdings Limited which was listed on the Growth Enterprises Market (GEM) Board of the Stock Exchange of Hong Kong (stock code. 8089; current name is Chinese Strategic Holdings Limited) in 2000. He served as the Chairman and Chief Executive Officer of Proactive Technology Limited from 25 Feb 2000 to 16 Oct 2007. Mr. Tsang then acted as the Chief Executive Officer in China Eco-Farming Limited (GEM Board stock code 8166) from 30 Sept 2008 to 1 Jan 2015.

 

Mr. Tsang holds a bachelor degree in economics of the Chinese University of Hong Kong in 1984 and a higher certificate in electronic engineering in the Hong Kong Polytechnic University in 1983. He has over 30 years of experience in the telecommunications and electronic industries. Mr. Tsang started his marketing career in 1984. In 1987, he joined Hongkong Telecom as a consultant in marketing data communication services and his last position was account director.

 

Section 16(a) Beneficial Ownership Reporting Compliance

 

Under Section 16(a) of the Securities Exchange Act of 1934, as amended, an officer, director, or greater-than-10% shareholder of the registrant must file a Form 4 reporting the acquisition or disposition of registrant’s equity securities with the Securities and Exchange Commission no later than the end of the second business day after the day the transaction occurred unless certain exceptions apply. Transactions not reported on Form 4 must be reported on Form 5 within 45 days after the end of the registrant’s fiscal year. Such persons must also file initial reports of ownership on Form 3 upon becoming an officer, director, or greater-than-10% shareholder. To our knowledge, based solely on a review of the copies of these reports furnished to it, the officers, directors, and greater than 10% beneficial owners have complied with all applicable Section 16(a) filing requirements during 2018 other than the following: Two directors who resigned on March 19, 2018, Lecia L. Walker and Esther Lynn Atwood, both filed untimely Forms 3.

 

Code of Ethics Policy

 

The registrant has prepared but has not yet adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

 

Corporate Governance

 

There have been no changes in any state law or other procedures by which security holders may recommend nominees to our board of directors. In addition to having no nominating committee for this purpose, we currently have no specific audit committee and no audit committee financial expert. Based on the fact that our current business affairs are simple, any such committees are excessive and beyond the scope of our business and needs.

 

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ITEM 11. EXECUTIVE COMPENSATION

 

Compensation of Executive Officers

 

During the last four fiscal years, there has been no compensation awarded to, earned by or paid to any executive officer nor did the registrant have any compensatory plans in effect for stock options.

 

Director Compensation

 

Directors do not receive any compensation for serving as directors. All directors are reimbursed for ordinary and necessary expenses incurred in attending any meeting of the board of directors or any board committee or otherwise incurred in their capacities as directors.

 

Compensation Committee Interlocks and Insider Participation

 

During the last three fiscal years, we have not had a compensation committee (or other board committee performing equivalent functions) as part of our board of directors, nor have we had any officer participate in deliberations concerning executive officer compensation.

 

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

 

The following table sets forth, as of March 25, 2019 , the number and percentage of outstanding shares of the registrant’s common stock owned by (i) each person known to us to beneficially own more than 5% of its outstanding common stock, (ii) each director, (iii) each named executive officer, and (iv) all officers and directors as a group.

 

Name and Address of Beneficial Owner  Number of Shares Beneficially Owned   Percentage of Outstanding Shares 
         
Tsang Chi Hin
8547 E. Arapahoe Road #J453
Greenwood Village, CO 80112
   3,500,000    68.99%
           
Directors and Executive Officers as a Group   3,500,000    68.99%

 

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

 

Promissory Notes Payable - Related Party

 

On December 31, 2017, two promissory notes in the amount of $9,000 payable to Terayco Enterprises Ltd., a related party and is due on or before December 31, 2018. The note is interest free until December 31, 2017 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. The two promissory notes in the amount of $9,000 were paid-in-full during the year ended December 31, 2018.

 

On December 31, 2017, three promissory notes in the amount of $20,035 payable to VentureVest Capital, Corp., a related party and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. The three promissory notes in the amount of $20,035 were paid-in-full during the year ended December 31, 2018.

 

NAME  DATE OF NOTE   AMOUNT 
VentureVest Capital, Corp.   December 31, 2016    4,920 
VentureVest Capital, Corp.   December 31, 2016    12,515 
VentureVest Capital, Corp.   March 21, 2017    2,600 
         20,035 

 

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On December 31, 2017, seven promissory notes in the amount of $35,375 payable to VentureVest Capital, Corp., a related party and its due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. The seven promissory notes in the amount of $35,375 was fully settled during the year ended December 31, 2018.

 

NAME  DATE OF NOTE   AMOUNT 
VentureVest Capital, Corp.   June 29, 2017    6,323 
VentureVest Capital, Corp.   July 22, 2017    3,800 
VentureVest Capital, Corp.   July 7, 2017    13,117 
VentureVest Capital, Corp.   July 7, 2017    1,500 
VentureVest Capital, Corp.   August 25, 2017    2,260 
VentureVest Capital, Corp.   October 4, 2017    3,875 
VentureVest Capital, Corp.   December 24, 2017    4,500 
         35,375 

 

Spin-off from Predecessor

 

On February 5, 2014, the board of directors of Original Source Entertainment, Inc. approved the spin-off of the registrant to its shareholders. The spin-off is being done in connection a change of control. Under the terms of the spin-off, our common shares will be distributed on a pro-rata basis to each holder of Original Source Entertainments’ common shares on the record date without any consideration or action on the part of such holders, and the holders of Original Source. Entertainments’ common shares as of the record date will become owners of 100 percent of our common shares. The spin-off was consummated only upon the satisfactory resolution of all comments from the SEC to the Form 10 and its effectiveness. The common shares were distributed to the former shareholders of Original Source Entertainment as of the record date and were held in escrow with J.M. Walker & Associates, Attorneys At Law.

 

Lecia L. Walker and E. Lynn Atwood were officers, directors and principal shareholders of Original Source Entertainment through the closing date of the Share Exchange.

 

There are no other agreements between Original Source Entertainment and the registrant after the spin-off.

 

Original Source Entertainment did not retain any liability relating to the registrant after the spin-off.

 

As a result of this spin-out of the registrant from its parent company and the approved 50,073 for 1 forward split, there is be a total 5,073,000 shares issued and outstanding.

 

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Audit Fees

 

We have incurred fees and expenses from Lo and Kwong C.P.A. Company Limited of $5,600 for the 2018 fiscal years and $3,000 for the 2017 fiscal year. Fees included work completed for our annual audit and for the review of our financial statements included in our Form 10.

 

Tax Fees

 

We have not incurred fees and expenses for the 2018 and 2017 fiscal years for professional services rendered for tax compliance, tax advice, and tax planning.

 

All Other Fees

 

The Board of Directors, acting as the Audit Committee considered whether, and determined that, the auditor’s provision of non-audit services was compatible with maintaining the auditor’s independence. All of the services described above for fiscal years 2018 and 2017 were approved by the Board of Directors pursuant to its policies and procedures. We intend to continue using independent accounting firm for the audit and audit-related services.

 

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PART IV

 

ITEM 15.EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

(a)(1) List of Financial statements included in Part II hereof
   
  Report of Independent Registered Public Accounting Firm
  Balance Sheet:
  December 31, 2018 and 2017
  Statements of Operations:
  For the years ended December 31, 2018 and 2017
  Statements of Changes in Shareholders’ Equity:
  For the years ended December 31, 2018 and 2017
  Statements of Cash Flows:
  For the years ended December 31, 2018 and 2017
  Notes to Financial Statements:
  For the years ended December 31, 2018 and 2017
   
(a)(2) List of Financial Statement schedules included in Part IV hereof: None
   
(a)(3) Exhibits

 

The following exhibits are included herewith:

 

Exhibit No.   Description
     
31   Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32   Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*   XBRL Instance Document
101.SCH*   XBRL Taxonomy Extension Schema Document
101.CAL*   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*   XBRL Taxonomy Extension Label Linkbase Document
101.PRE*   XBRL Taxonomy Extension Presentation Linkbase Document

 

*XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
   
  Following are a list of exhibits which we previously filed in other reports which we filed with the SEC, including the Exhibit No., description of the exhibit and the identity of the Report where the exhibit was filed.

 

No.   Description   Filed With   Date Filed
             
3.1   Articles of Incorporation   Form 10   December 3, 2015
3.2   Bylaws of Original Source Music, Inc.   Form 10   December 3, 2015
3.3   Specimen of Stock Certificate   Form 10   December 3, 2015
10.1   License Agreement   Form 10   December 3, 2015
10.2   Assignment of license agreement   Form 10   December 3, 2015
10.3   Option agreement   Form 10   January 11, 2016

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned duly authorized person.

 

Dated: April 11, 2019

 

By: /s/ Tsang Chi Hin  
Tsang Chi Hin,  
Chief Executive Officer, Chief Financial Officer and President  

 

In accordance with the requirements of the Securities Exchange Act of 1934, as amendment, this report has been signed by the following persons in the capacities and on the dates stated.

 

Original Source Music, Inc.  
(Registrant)  
   
By: /s/ Tsang Chi Hin  
Dated: April 11, 2019  
  Tsang Chi Hin  
 

Chief Executive Officer, Chief Financial Officer, President and Director

 

 

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