UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,Washington, D.C. 20549

FORM 10-K

For the year ended December 31, 2020

OR

For the transition period from       to

Commission File Number: Interlink Plus, Inc.000-55591

LOOP MEDIA, INC.

(Exact name of registrant as specified in its charter)

700 N. Central Ave., Suite 430,

Glendale, CA 91203

(Address of principal executive offices) (Zip Code)

(213) 436-2100

(Registrant’s telephone number: 702-824-7047number, including area code)

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

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

Indicate by checkmarkcheck 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 ☐ No

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, 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 [X]☐ 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 an 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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes [ ]☒ No [X]

State theThe aggregate market value of the voting and non-voting common equitystock held by non-affiliates computed by reference to the price at which the common equitystock was last sold, or the average bid and asked price of such common equity,stock, as of June 30, 2020, was $295,582,987.

As of April 14, 2021, the last business day of the registrant’s most recently completed second fiscal quarter. $188,055

Indicate the number ofregistrant had 120,933,177 shares outstanding of each of the registrant’s classes of common stock asissued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Certain information required by Part III of Form 10-K is incorporated by reference to the Registrant’s information statement for the 2021 Annual Stockholders Meeting, which will be filed with the Securities and Exchange Commission within 120 days after the end of the latest practicable date. 67,373,008 common shares issuedfiscal year to which this Report relates.

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and outstandingSection 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements include, among others, those statements including the words “believes”, “anticipates”, “expects”, “intends”, “estimates”, “plans” and words of September 24, 2018.similar import. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Forward-looking statements are based on our current expectations and assumptions regarding our business, potential target businesses, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. You should understand that many important factors, in addition to those discussed or incorporated by reference in this report, could cause our results to differ materially from those expressed in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include changes in local, regional, national, or global political, economic, business, competitive, market (supply and demand) and regulatory conditions and the following:

ii

Other sections of this report describe additional risk factors that could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time, and it is not possible for our management to predict all risk factors and uncertainties, nor are we able to assess the impact of all of these risk factors on our business or the extent to which any risk factor, or combination of risk factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks and others described under the section “Risk Factors” below are not exhaustive.

Given these uncertainties, readers of this Annual Report on Form 10-K (“Annual Report”) are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

iii

PART I

ItemITEM 1. BusinessBUSINESS

History

On January 3, 2020, we (the “Company”, “Loop Media”, “Issuer”, “we”, “us”, “our”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Overviewthe Company’s wholly owned subsidiary, Loop Media Acquisition, Inc., a Delaware corporation (“Merger Sub”), and Loop Media, Inc., a Delaware corporation (“Predecessor Loop”). Under the terms of the Merger Agreement, on February 6, 2020, Merger Sub merged with and into Predecessor Loop with Predecessor Loop surviving the merger and becoming a wholly-owned subsidiary of the Company (the “Merger”). At the time of the Merger, Predecessor Loop stockholders received one newly issued share of the Company’s common stock in exchange for each share of Predecessor Loop common stock.

OurThe Merger was treated as a recapitalization and reverse acquisition of the Company for financial accounting purposes. Predecessor Loop is considered the acquirer for accounting purposes, and the Company’s historical financial statements before the Merger have been replaced with the historical financial statements of Predecessor Loop before the Merger in our filings with the SEC since the Merger.

Prior to the Merger our business is divided intocomprised two majormain business segments: (i) travel agency assistance services and (ii) convention services. Upon completion of the Merger, on February 6, 2020, the Company sold these businesses and related assets to a stockholder of the Company in exchange for 2,000,000 outstanding shares of common stock of the Company.

We areOn May 22, 2020, the Company entered into a start-up company thatPlan of Merger by and among the Company and its wholly-owned subsidiary, Predecessor Loop, pursuant to which, Predecessor Loop merged with and into the Company with the Company surviving the merger and the separate existence of Predecessor Loop ceasing (the “Consolidation”). To affect the Consolidation, the Certificate of Ownership and Merger were filed with the Delaware Secretary of State on June 8, 2020 and the Articles of Merger were filed with the Nevada Secretary of State on June 9, 2020. In connection with the Consolidation the Company changed its name to Loop Media, Inc. and remained a Nevada corporation.

On June 8, 2020, the Company filed a Certificate of Change pursuant to NRS 78.209 with the Nevada Secretary of State to implement the reverse split of the Company’s authorized and outstanding shares of common stock on a 1 to 1.5 basis (the “Reverse Split”). In connection with the Reverse Split, the number of shares of common stock the Company has the authority to issue decreased from 500,000,000 to 333,333,334 shares, and there was formed on May 11, 2015. To the present, we have engaged in formation activities, raising capital, and commencing operations. We have signed services contract with multiple travel agents to assist with hotel room price quotation and negotiation and communicating with hotels to ensure that accurate reservations are made with Chinese clientele. Through June 30, 2018, we have generated revenue from our agreement with our clients. We earned $86,715 and $45,400 in revenues for the years ended June 30, 2018 and 2017, respectively. We are also hopeful that we will engage in other contracts for the services outlined below.

We require additional capital necessary for us to grow our business. Our initial plans include: hiring necessary personnel, marketing our business, completing our website, purchasing equipment and software and further developing the service offering. Our business plan calls for capital of approximately $250,000a corresponding decrease in the next twelve months. There is no assurancenumber of issued and outstanding shares of each class and series of common stock. Except for de minimus adjustments that we will be successful in these endeavors or that if we accomplish allresulted from the treatment of these steps we will be able to operate profitably. We intend to fulfillfractional shares, the service needsReverse Split did not have any dilutive effect on our then current stockholders at the time of the Reverse Split because each stockholder held the same percentage of our potential customers by utilizing resources and employees incommon stock outstanding immediately following the United States, but,Reverse Split as we grow, we believe we can reduce costs and increase margins by utilizing personnel in foreign countries, such as China,stockholder held immediately prior to fulfill the services on behalf of our customers.

Through our services, we believe that clients will be able to gain the advantage of maintaining their growth goals without the need to sacrifice precious resources to address standard business bottlenecks. Our goal is to allow firms to retain their entrepreneurial speed and agility, advantages they would otherwise sacrifice in dealing with logistics rather than the specific focusReverse Split. As a result of the client’s business. We plan to allow clients to grow at a faster pace as they will be less constrained by large capital expenditures for people, training, equipment, or mistakes made from lackReverse Split, the number of experience in areas which are unrelated to the client’s specific business purpose.

Travel Agency Assistance

We provide services for overseas travel agents on hotel price quotation and negotiation, contract reviewing, detailed guests’ arrangements, hotel check-in assistance and tradeshow assistance. Overseas travel agents often encounter language barriers and time differences on office hours when dealing with U.S. based hotels and U.S. based conventions. We believe that our bilingual language services, flexible office hours, and reasonable fee structure will help our clients to increase accuracy and efficiency levels, and reduce costs.

Currently, we service 8 overseas and domestic travel agencies. These travel agencies work with exhibition service agents or travel groups in China to coordinate the travel plans of tour groups that plan on attending exhibitions in the U.S.  Depending on the event, these tour groups can range from 20 to over 700 people. It is vital for the travel agents and exhibition services agents to provide their clients - Chinese businesses who exhibit in the trade show, a seamless and worry-free trip.

Our role is to help the travel agencies communicate with hotels and convention staff timely and accurately, including finding and negotiating hotel rate, reviewing and updating contracts, submitting and revising guest lists, group check-in (pick up and sorting the room keys for different groups), communicating on bill differences, etc.  We currently have bilinguals that are fluent in English and Chinese. We plan to expand our staff of bilinguals to cater to other languages and countries other than China. Our main focus at the present time is to establish a presence in China and we intend to branch out to other Asian countries from there as resources permit.

In November 2016, we became a certified travel agency. Additionally, we became an affiliate partner with booking.com and the Expedia TAAP program. We hope these recent events will help us increase revenue in the future.

1

Convention Services

Our second business segment is catering to the individual exhibitors at the exhibitions. Exhibitors/ attendees often have temporary assistance needs at conventions and trade shows. We assist these clients on booth set up, tradeshow promotion material preparing, entourage interpreter and/or exhibitor booth personnel arrangements, including bilingual spokespersons, sales associates, narrators and demonstrators, hostesses/hosts, promoters and models.

We are also able to provide custom and pre-made booths, booth graphic design, and exhibit booth setup services to our clients. For clients looking for complete tradeshow exhibit booths, we provide turnkey solutions for sale. We offer top of the range Tablets, TV screens with stands, tables, and chairs, storage bins among others, to ensure that your tradeshow booth is highly inviting. We are able to work with clients on their required specifications and our staff is capable of delivery and assembly of attractive booth designs.

We have limited clients in this business segment. We plan to utilize our travel agency and exhibition service agent contacts to reach out to these exhibitors and establish direct connections for our exhibition services.  We may also work though these vital contacts as an extension of their services to these clientele.  Furthermore, because we have a U.S. presence, we plan to reach out to the U.S. exhibitions to offer our services to these clientele.

Management, Employees and Consulting

We currently do not compensate our officer and director, Duan Fu. We plan to compensate him when we have enough money to do so. His main function is to oversee the entire plan of the company and engage in the day to day operations. His expertise is in design and business management. We expect that he will be instrumental in our marketing and advertising efforts. He will purchase keywords on Google AdWords to drive traffic to our website, and also purchase email lists and send bulk email to small and medium sized businesses to generate interest. We do not anticipate that we will enter into an employment agreement with Mr. Duan or compensate him with significant cash in the twelve months. We plan to provide him around $2,000 in cash monthly if and when it is available. As of June 30, 2018, we have not compensated Mr. Fu, since we want to utilize our capital on business operations and growth.

We have a consulting agreement with Zixiao Chen. Ms. Chen was a prior officer and director. She assisted with our formation activities and resigned shortly after our incorporation, opting for a consultant capacity with our company. In her agreement, dated July 11, 2015, we initially compensated her monthly with 60,000 shares of our common stock that may be purchased upon exercise of warrants, options, or $3,000. On July 1, 2017, we enteredother securities outstanding at the time of the Reverse Split and convertible into, a new consulting agreement with Ms. Chen.  Her responsibilities include overseeing the business accounts, dealing with clients and expanding the company’s sales efforts. She will assist with creating timelines, data entry, plans and budgetsor exercisable or exchangeable for, our clients. She will also establish the training program to train new employees on delivering the services, oversee and respond to concerns with our outsourced personnel. Her agreement provides her monthly compensation in the form of 300,000 shares of our common stock, and the exercise or $3,000, payable atconversion prices for these securities, have also been ratably adjusted in accordance with their terms. All share and per share numbers in this report relating to our discretion. Aftercommon stock prior to the initial year, we are requiredReverse Stock Split have been adjusted to compensate her in cash.give effect to the Reverse Split, unless otherwise stated.

The Company

We havewere incorporated in Nevada on May 11, 2015. Our historical business comprised two main business segments: (i) travel agency assistance services and (ii) convention services, which business was sold upon consummation of the Merger with Predecessor Loop. As a consulting agreementresult of the Merger with Desert Skyline Resources, LLCPredecessor Loop, on February 6, 2020, we became an early-stage media company and acquired Predecessor Loop’s video streaming business and the management team of Predecessor Loop became our management team.

Predecessor Loop was started in 2016 with the intention of developing and then delivering a streaming video music service to consumers on their in-home and mobile devices. In 2016, Predecessor Loop sought to acquire ScreenPlay, Inc., a Washington corporation (“Desert Skyline”ScreenPlay”).  On July 15, 2017, we, which operated a business-focused video streaming service providing music video and other content to business venues and which had a vast short-form video content library that contained over 500,000 videos, including music videos, game, and TV trailers. At that time, Predecessor Loop acquired 20% of the remaining outstanding shares of ScreenPlay and entered into an agreement to acquire all of the remaining outstanding shares.

Predecessor Loop sought to acquire ScreenPlay to obtain access to and ownership of ScreenPlay’s vast video content, which could then be streamed to Predecessor Loop’s target retail customers, and to benefit from ScreenPlay’s relationships with Desert Skylinethe major music label companies whose licenses would be required to assistprovide music video content to such retail customers. The acquisition of all of the outstanding shares of ScreenPlay by Predecessor Loop was consummated in 2019, at which time ScreenPlay’s content became the foundation of Predecessor Loop’s (and now our) business. Since the acquisition of ScreenPlay, we have continued to procure additional content, through acquisitions and licenses, to further grow our video library.

You can find more information about us at our website located at www.loop.tv.

Our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to those reports are available free of charge through our website as soon as reasonably practicable after we electronically file or furnish such material with the SEC. The contents of our website are not incorporated into or deemed to be part of this Annual Report or any of our other filings with the SEC.

Our principal executive offices are located at 700 N. Central Avenue, Suite 430, Glendale, CA 91203 (telephone: 213-436-2100).

Our Business

Loop Media is at the forefront of curating short-form video content into dynamic and engaging visual experiences, which we deliver to business connections, marketingcustomers for their out of home (“OOH”) venues and directly to retail consumers (“D2C”) in their home and on their mobile devices. Our curated video content, which is currently primarily music videos, is provided to business venues and consumers on either a paid subscription (“Premium Service”) or unpaid advertising (“Ad-Supported Service”, and together with the Premium Service, the “Service”) basis. We are actively developing our non-music video content and expect to expand this area of our service to help further diversify our video offerings. We seek to monetize our content through the provision of our Services primarily in the United States. Our revenue is generated by advertisers who pay to have their advertisements viewed by the end users of our services and by business owners and users who pay a subscription fee to access our services without advertisements.

We are an early-stage operating company, with limited revenue and negative cash flow from operations. Our revenue for the fiscal year ended December 31, 2020, consists almost entirely of revenue from our historic ScreenPlay business, which we acquired along with ScreenPlay’s catalogue of music and other videos in February 2020 and does not yet fully reflect expected revenues from our more recent product offerings, Services, and business development.  All amounts owedmodel. See “Business Model.”

The Company employed approximately 43 people as of December 31, 2020, 34 of whom were full-time employees and 9 of whom were contract workers.

We have made significant investment and incurred a large amount of fees and expenses, including some non-cash items, in order to develop our business and will need to continue to do so for the foreseeable future. We rely on external funding to finance our business and will continue to do so. For the years ended December 31, 2020 and 2019, our revenues were $2,794,081 and $3,381,121, respectively. We had a net loss in both years ending December 31, 2020 and 2019. The Company has an accumulated deficit. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or obtain additional financing from its stockholders and/or other third parties. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Our Services

We provide curated short-form video content to business customers for their OOH venues and D2C customers in their home and on their mobile devices.

Loop Media’s music video service provides a unique three-hundred-and-sixty-degree experience that allows a user to access our product in their home on a connected television (CTV) or mobile device, while they travel outside their home on their mobile device, and upon arriving at an OOH venue that offers our Services. While at home or in the OOH venue a consumer may also be able to use our mobile application (Loop – Live Music Videos) (the “Loop App”) to interact with their home CTV or the venue’s televisions, as our mobile application includes social features that allow users to follow and be followed by other users, share their location and any user created playlist (a video music “Loop”), view activity, signal support for a particular music video, and listen to other users’ Loops. We believe we are the only service licensed by all three major music labels (see “License Agreements”) providing users with access to a music video product in both OOH venues and directly to their CTVs and mobile devices.

An upcoming feature is expected to allow us to engage customers while they are at an OOH venue that has our service through social media applications and on-screen identification. We will encourage the customer to download the Loop App which allows them the opportunity to influence what is playing on select screens while in the venue (at the venue’s discretion). Using the D2C application the user is expected to be able to access a large variety of playlists in the free advertising supported version of the application. Premium Service subscribers will be able to access even more content and features in the paid version of our application.

With the introduction of our D2C service we have begun to take the programing and music video management experience we have developed in our OOH service to the under-serviced consumer market. Although there are other avenues to watch individual music videos on-line, we believe there is a shortage of professionally produced music video programs available. In addition to being able to play individual music videos, users of our premium version will also be able to program their own playlists in expanded ways. We expect our advertising-enabled free video service will be welcomed by consumers as it will bring dozens of professionally produced video programs to the market at no direct cost to the viewer.

Our Operations

We acquire short-form video content and produce, curate, develop and package that content for distribution to our customers. Customers can access our content primarily by visiting select OOH venues, through over the top (“OTT”) linear channels on CTVs and similar devices and on their mobile devices through our Loop App.

Content acquisition

We acquire video content through acquisition, obtaining licensing rights and partnering with owners and creators of content. The backbone of our content is currently our vast music video library, which we acquired from ScreenPlay.

Music videos

We believe our music video library is one of the largest in the world and gives us an advantage over many of our competitors, which may have more limited historical libraries. Our music video library contains videos from the 1950s up until 2021, with the newest videos being obtained directly from the music labels. Historical music video libraries are more difficult to obtain, as there is generally no central data base to purchase such videos and the individual music labels who have rights over portions of such videos do not easily and readily provide their entire back catalogue of music videos to those seeking to acquire them.

Although we own copies of the music videos that we deliver to our customers, we need to secure the rights to stream the video and sound recordings and the musical compositions embodied therein (i.e., the musical notes and the lyrics) to provide these videos to our customers. To do so we enter into license agreements to obtain licenses from rights holders such as record labels, music publishers, performance rights organizations, collecting societies, and other copyright owners or their agents, and pay royalties to such parties or their agents.

We currently have licenses and agreements with multiple parties to distribute our music videos for our OOH and consumer customers in the United States, Canada, and Mexico, and are looking to expand our reach by securing licenses for other regions, including other countries in South America and, possibly, Europe and Asia. We have longstanding limited, non-exclusive licenses to digitally distribute certain music video recordings and related materials owned or controlled by the three main music labels (the “Music Labels”) to our OOH customers. In 2020, we entered into agreements with the Music Labels, pursuant to which the Company was also provided limited, non-exclusive licenses to digitally distribute certain music video recordings and related materials owned or controlled by the Music Labels in connection with our D2C business and the provision of music videos to users of the Loop App for mobile and CTV. The last of these agreements was entered into in December 2020 at which time we were able to provide a more complete offering of music video content to our D2C customers.

Trailers

Our film, game, and TV trailer library is one of our larger video libraries and, like our music video library, includes a back catalog of older videos, dating from the early 1900s to the present. More recent trailers are secured from the relevant production companies, at no cost to us, and add to our growing library. Our back catalogue of older trailers was obtained with the acquisition of ScreenPlay.

Other

In addition to music videos and movie trailers, we have obtained other video content for curation and distribution to our customers. This content includes, college sports highlights, viral videos (including “fail” and animal videos), atmospherics, travel, and children’s videos.

We continue to explore opportunities to secure other forms of video content to add to our growing content library, including content related to entertainment, lifestyle, and information.

Content curation

In October 2020 we created a new business division at Loop, called Loop Music Studios (“Loop Studios”), to lead the acquisition, curation, production, and branding of our video content.

Loop Studios works to curate content to create a compelling user experience by, among other things, curating playlists by genre, mood, or time periods (“Playlists”) and creating streaming linear channels, delivered under our “watch live tv” product feature, which is organized along genres and moods (“Channels”). We currently have over 80 English language music video Playlists, 65 Spanish language music video Playlists, 65 music video Channels for OOH venues, 13 non-music video Channels for OOH venues, and 24 music video Channels for our consumer end users delivered through the Loop App on CTVs or mobile devices.

Through Loop Studios we are also seeking to produce our own content “in-house” that can be packaged separately or as part of our third-party content offerings through our existing and future Channels.

Content distribution

We seek to make our content available virtually anywhere and anytime throughout the evolving media landscape. We leverage our existing content across a number of distribution platforms, reaching consumers in OOH venues and via our Loop App on their CTVs and mobile devices. These digital and mobile initiatives are expected to drive growth as users consume content and utilize services across an increasing number of platforms.

OOH

The foundation of our company was built around OOH: providing licensed music videos to businesses and public venues. Our OOH business has been supporting the hospitality and retail industries with music video services for over 20 years, originally by ScreenPlay, which we acquired in 2019. Our OOH service is targeted at commercial outlets throughout the United States.

Most OOH venues deliver visual content to their customers by use of cable TV boxes and computer-based audio-visual (“A/V”) equipment requiring significant investment and cost. Capital investment in equipment has been historically, and in many cases still is, a barrier for many OOH venues to provide visual entertainment to their customers. Unlike consumers in their homes, who have been paid.more willing in recent years to invest in CTVs and streaming services, businesses as a general matter have been slower in adopting often lower cost streaming options and acquiring the related necessary equipment in their OOH venues. We believe the COVID-19 pandemic, which began in early 2020, has accelerated the consideration by OOH operators of lower cost solutions to providing visual content in their venues.

Historically, our OOH business model was a Premium Service-only model and required computer hardware for the provision of content. With a Premium Service OOH model, business owners would pay a monthly subscription fee and we would provide them with curated business Channels for which they subscribed. Customers would purchase computer hardware equipment from us in order for us to deliver the content to them and for them to play the content through their A/V systems to the televisions in their venues. The customers signing up for our Premium Service were primarily bars and restaurants, but also included casinos and retail stores.

To gain greater access to, and expand our business with, OOH venues, we developed the Loop Player (the “Loop Player”), our own proprietary “small-box” streaming video player that plugs directly into a television’s HDMI video input, or can be plugged into an A/V system to stream video content to multiple television sets. We originally offered the Loop Player at a relatively low cost to OOH businesses but have more recently offered free Loop Players to businesses, which eliminates the need for OOH customers to pay for costly computer hardware and allows us to introduce more easily an Ad-Supported Service to such OOH customers. The Ad-Supported Service also eliminates a business customer’s monthly subscription fees. We believe the Loop Player and our Ad-Supported Service has brought the cost of specialty equipment and visual entertainment significantly down for business owners who replace their existing equipment and service with our Loop Player, as there is no payment from the OOH venue operators for our Loop Player or Ad-Supported Service.

The Loop Player was introduced in early 2020, but the push to get it into the hands of business owners only began in earnest in the 4th quarter of 2020. We believe the COVID-19 pandemic, which started in early 2020 and caused many businesses to shut down or reduce capacity, has accelerated the demand of business owners to look for CTVs and streaming services, including the Loop Player, to reduce their costs. We believe the introduction of our Loop Player and the switch to an Ad-Supported business model for our OOH business has contributed in recent months to the growth of our OOH clients and the expansion of our client base beyond our typical hospitality-based clients to smaller venues, franchisees and venues that service non-hospitality industries, like pet stores, doctors’ offices, and other non-traditional venues.

The Loop Player allows us to stream content over the Internet to retail consumers without the need for a cable subscription or a CTV. Our OOH service is also offered to business customers by downloading our on-line business application through CTVs and other streaming video players like the Amazon Fire Stick, Roku Streaming devices, and native television manufacturer applications such as Vizio. In the near term, customers switching from a Premium Service, which was the primary contributor to our revenues for the year ended December 31, 2020, to an Ad-Supported Service may adversely impact our revenues as the Ad-Supported Service ramps up. Over time, however, the Ad-Supported Service is expected to provide more revenue than our Premium Service for individual OOH customers as we are increasingly able to fill advertising inventory in our content with paid advertisements. OOH commercial and public venues provide advertisers with access to multiple consumers at once, as opposed to, for instance, a single consumer viewing an advertisement on their individual mobile device. This makes an Ad-Supported Service for our OOH business more attractive to us than a Premium Service. OOH business customers who do not want advertising displayed on the content streamed to their venues can choose a Premium Service with ad-free content streamed by the Loop Player for a subscription fee.

The Loop Player allows our clients to program their in-store monitors and audio systems to, among other things, schedule Playlists to come on and off depending on the time of day, promote a client’s products or services through digital signage, or deliver franchise or company-wide messages to staff in back office or break room locations. Business owners can filter out content based on ratings or explicit language and can control which genres of videos to exclude from their programming. Business owners can also use our scheduling function to play specific playlists that highlight the natural rhythms of their businesses (e.g., special promotional nights or relaxed lunchtimes).

The Loop Player is a lightweight, interactive solution for a business’ A/V and communication needs. The Loop Player comes with an expanded local memory for offline caching and provides a failsafe in the event of loss of internet connection. The OOH streaming player is also equipped with a wide range of direct outputs for various A/V setups including audio and stereo outputs, ethernet plugin, USB 2, USB 3, HDMI, SD input, and Bluetooth.

Our OOH Playlists last between 5-10 hours to reduce the number of repeats of videos and are pre-screened for content that may not be appropriate for businesses.

Mobile applications

We planhave developed mobile and internet applications such as the Loop App smart phone application and our online app accessed through OTT platforms for the distribution of our music video content only. These mobile and internet applications allow users of our Ad-Supported Service to hireuse their smart phones, tablets, or other digital devices to interact directly with our Channels and Playlists, while providing an additional method for advertisers to reach consumers. For Premium users they are given enhanced functionality to search for titles of music videos and artists, request music videos, and create custom and personalized “Loops”. Our Loop App was made available in mid-2020, but we have not promoted or advertised it in any meaningful way, as we were unable to provide a sales manager when fundsfull music video offering until we secured the last of our three major label licenses in December 2020. As a result, the Loop App mobile application has not experienced significant downloads. We have seen some a heightened number of downloads in Mexico, where we launched the Loop App with an Asian-based communications distribution partner.

OTT /MVPDs

For non-music video content, our licenses generally provide that we can develop the content for linear channels operated by multichannel video programming distributors (“MVPDs”). MVPD operators appear less interested in non-music video content in linear channel format than with music video content, but we will continue to explore the distribution of non-music video content as we seek to develop and provide additional expertly curated and broader content offerings. We do not currently have any significant non-music video content distribution on linear channels.

We are available.exploring the distribution of our music-video content through linear channels on MVPD platforms and have entered into distribution transactions with several such platforms for the distribution of certain of our music video Channels. In order to provide a fully engaging music video Service offering on the linear channels of OTT platforms, we will need to secure additional licensing rights from the Music Labels. We are in discussions with certain of the Music Labels to try and secure additional or expanded licenses, but there is no assurance these licenses will be obtained.

Linear channels operate on the MVPD platforms as a standalone linear channel presented by the MVPD operator without the need to access our Loop App. The sales manager will hire sales peopleMVPDs who distribute Channels for each geographical region. Sales staff will call leads generatedus share in our revenue from subscriptions and advertising, as well as other revenue derived from our marketing efforts, including mailing lists,Channels on their OTT platforms.

Our Business Model

We offer both Premium and will engageAd-Supported Services. Our Premium and Ad-Supported Services are separate offerings to end users but work together to help support our business. Our free to the end user Ad-Supported Service serves as a way to acquire users of our Premium Service for our D2C Mobile App users. We prefer customers who obtain our services in other sales techniques, like attending trade showsour OOH and networking. This sales manager will review and signOTT businesses to remain with our service contracts with new customers. IfAd-Supported Services, as we areexpect to be able to raiseearn more gross revenue with our Ad Supported Service model in these businesses than we do with a Premium Service for the money,foreseeable future. We believe our Ad-Supported Service will be a strong and viable stand-alone product with good long-term opportunity for growth in Ad-Supported users and revenue; however, we planface intense competition in growing both our Ad-Supported users and Premium users, as well as in keeping our users highly engaged. If user engagement declines or if we fail to compensatecontinue to grow our sales manager around $3,000 per month, plus commissions when available from sales. Ad-Supported user base or Premium subscriber base, our revenue growth will be negatively impacted. See “Risk Factors—Risks Related to Our Business—If our efforts to attract prospective users and to retain existing users are not successful, our growth prospects and revenue will be adversely affected.”

We anticipate hiring three membersare currently primarily focused on the United States with our OOH and D2C businesses but have sought to expand our D2C businesses in Canada and Mexico, with other South American countries to potentially follow along, possibly with parts of Europe and Asia. Expanding our OOH business outside the United States is also being considered but may require more of a physical presence by us on the ground in certain jurisdictions in order to grow that business in any meaningful way.

We are targeting OOH businesses that are looking to provide premium curated video content to their customers and consumers who are looking to access premium music video content in their homes and on their mobile devices.

Our primary business is the provision of content to our sales team when funds are available, hopefully within the next three months. Each sales staff memberOOH business customers, giving them music video and other video content that will make approximately $1,000 per month, plus commissions when available from sales.

We will also need to hire client account and customer service personnel. Ms. Chen will head the efforts of these personnel. They will assist herprovide their customers with working the accounts and service needs of our clients. We anticipate hiring one or two membersaccess to our accounts/vast video library through Playlists and Channels. Our service team when funds are available. Each member will make approximately $1,500-$2,000 per month.to OOH businesses is both Premium and Ad-Supported.

2Our business plan also includes a second revenue stream from users who download our Loop App, giving them access to our vast video library through Playlists, Channels, Loops, and on demand searches. Our Loop App can be accessed as a Premium or Ad-Supported Service.

MarketingOur business plan further contemplates a third future potential revenue stream which would come from OTT customers, giving them music video and Sales

other video content that would provide subscribers to the relevant third-party OTT services with access to our vast video library through Channels. We expect that mostour service to OTT platform providers will primarily be Ad-Supported as many of the providers run a free advertising supported television, or FAST, business model for Channels on their services.

Our Growth Strategies

We are in the early stages of our clients will be reached via emailbusiness model to monetize our music video content library obtained from ScreenPlay and phone callsall other video content licensed from third-party content providers. For the year ended December 31, 2020, substantially all our sales personnel. As explained above, asrevenues were derived from the historical business growsof ScreenPlay, which relies on a Subscription service-based model using older and more expensive A/V technology. Our revenues for 2020 did not contain any significant contribution from any Ad-Supported Services or the provision of the Loop Player to OOH venues or our Loop App to retail consumer end users.

Our growth strategies are focused on monetizing and growing our content library by (i) increased marketing to OOH venues to increase the number of OOH venues are Service is in; (ii) cross promotional marketing to consumer end users of our Services to grow the number of users our Services reach; (ii) acquiring, licensing and developing our non-music video content library to enhance margins and broaden our reach; (iii) attracting more users in current and new markets in order to collect more behavioral data, which we raise enough funds, we planuse to hire employees. We also plan to rent a physical office. We plan to spend approximately $5,000 per month on Google Adwords, Paper-per-click (PPC), search engine marketing (SEM), search engine optimization (SEO)offer our customers, users and other formsadvertisers an even better experience; (iv) invest in our advertising partners; and (v) expand operations internationally.

The key elements of online marketing. We will spend approximately $3,000 per month on purchasing email lists and engaging in print advertising with trade magazines and journals. These will be the main focus objectives with our marketing and sales budget for the next twelve months.growth strategy are:

Website DevelopmentLicense Agreements

We developed our website where we provide detailed information regarding our client services and the ability for clients to provide feedback on the types of services they needs from us. We will continue to refine the site, as funds are available, to provide more features and tools as our business operations dictate.

Equipment and Software

In order to stream video content to our users, we generally secure intellectual property rights to such content by obtaining licenses from, and paying royalties or other consideration to, rights holders or their agents. Below is a summary of certain provisions of our license agreements relating to music videos and the musical compositions embodied therein), as well as other non-music video content.

Music video and A/V recordings license agreements with major and independent record labels

We have license agreements with the recorded music affiliates of the three largest music companies: Universal Music Group, Sony Music Entertainment, and Warner Music Group. These agreements require us to pay royalties and make minimum guaranteed advanced payments, and they include marketing commitments, advertising inventory, and financial and data reporting obligations. Rights to A/V recordings granted pursuant to these agreements is expected to account for the vast majority of our music video use for the foreseeable future. Generally, these license agreements have a short duration and are not automatically renewable. The license agreements also allow for the licensor to terminate the agreement in certain circumstances, including, for example, our failure to timely pay sums due within a certain period, our breach of material terms, and in some situations that could constitute a “change of control” of Loop. These agreements generally provide computers and softwarethat the licensors have the right to audit us for compliance with the terms of these agreements. Further, they contain “most favored nations” provisions, which require that certain material contract terms be at least as favorable as the terms we have agreed to with any other similarly situated licensor. Our license agreements with the largest music companies for our employees, we expect to spend around $50,000 in the next twelve months.

LegalOOH business were entered into years ago and Accounting

Our primary priority will be to retain our reporting status with the SEC, which means that we will first ensure that wethose music companies have sufficient capitalrequested a review and update of those licenses. The updating of those licenses (or entering into new licenses to cover our legalOOH business) is expected to increase our license costs associated with such rights, including our minimum guarantee payment obligations. See “Risk Factors—Risks Related to Our Business—Minimum guarantees required under certain of our license agreements may limit our operating flexibility and accounting expenses. We estimate that these expenses will be $30,000may adversely affect our business, operating results, and financial condition.”

Musical composition license agreements

With respect to the underlying musical compositions embodied in the next twelve months.

Offices

Currently,music video recordings we stream, we generally secure both reproduction and public performance rights from the owners, publishers, or administrators of the compositions (or their agents). We have a mailbox address, but no office space. Our officerobtained direct licenses for reproduction rights with the three largest music publishers for our consumer business and consultants operate virtually.are in the process of obtaining such licenses for our OOH business. If our business does not perform as expected or if the rates are modified to be higher than the proposed rates, our music video content acquisition costs could increase, which could negatively harm our business, growsoperating results, and we successfully raise money, we planfinancial condition, hinder our ability to secure office space to conductprovide interactive features in our operations. We estimate that we will need approximately 800 square feet of space and we estimate that it will cost us $1,000 - $1,500 per month in rent.

We will also have general and administrative expenses, including phone, utilities, insurance, business licenses and incidental expenses. These are estimated at approximately $5,000 for the next twelve months.

Our continuation in business after the expiration ofservices, or cause one year and the employment of significant additional staff, will be dependent upon our achievement of profits from operations and/or obtaining capital from third party investors. Eventually, assuming our initial success in generating operating profits and raising capital from third party investors, management plans to expand the scopemore of our services not to be economically viable due to an increase in content acquisition costs.

In the United States, public performance rights are generally obtained through intermediaries known as performance rights organizations (“PROs), which negotiate blanket licenses with copyright users for the public performance of compositions in their repertory, collect royalties under such licenses, and distribute those royalties to beginmusic publishers and songwriters. We have obtained public performance licenses from, and pay license fees to, utilize foreign workers to fulfill our customer’s service needs.

Competition

Competitionthe PROs in all aspectsthe United States: the American Society of Composers, Authors and Publishers (“ASCAP”), Broadcast Music, Inc. (“BMI”), the SESAC Performing Rights, LLC (“SESAC”), and Global Music Rights, LLC (“GMR”). These agreements impose music usage reporting obligations on Loop and grant audit rights in favor of the outsourced servicesPROs. In addition, these agreements typically have one-to-two-year terms, and business servicessome have continuous renewal provisions, with either party able to terminate for convenience with one to two months’ prior written notice and are limited to the territory of the United States and its territories and possessions.

License agreements with non-music video content

With respect to non-music video content for which we obtain distribution rights directly from rights holders, we either negotiate licenses directly with individuals or entities. These license agreements require us to share associated revenues.

License agreement extensions, renewals, and expansions

From time to time, our license agreements with certain rights holders and/or their agents expire while we negotiate their renewals. Per industry custom and practice, we may enter into brief (for example, month-, week-, or even days-long) extensions of those agreements or provisional licenses and/or continue to operate on an at will basis as if the license agreement had been extended, including by our continuing to make content available. It is intense. Wealso possible that such agreements will compete against established outsourced business services companies with name familiaritynever be renewed at all. License agreements are generally restrictive as to how the licensed content is accessed, displayed, and greater financial resources. We intend to use our relatively small size to our advantage by focusing on customer service and by deploying unique marketing strategies. A large part of our effort to compete against the other companies in our field will be directed to being recognized in this market of large players and,manipulated, as a small company, to gain the trust of purchasing decision makers at our potential customers. In an effort to effectively compete, we will focus heavily on providing excellent service to our customers. We also intend to compete by running cutting edge marketing campaigns that use the internet and other technologies to educate the market about our services. Competitors maylicensors seek to duplicate the benefits of our services in ways that do not infringe on any benefits that our services offer. As a result we could find that our entire marketing plan and business model is undercut or made irrelevant by actions of other companies under which we have no control. We cannot promise that we can accomplish our marketing goals and as a result may experience negative impact upon our operating results.

3

Regulation

Federal, state and international laws and regulations impose a number of requirements and restrictions on our business. There are state and federal consumer protection laws that apply to our customer management services business, such as laws limiting telephonic sales or mandating special disclosures, and laws that apply to information that may be captured, used, shared and/or retained when sales are made and/or collections are attempted. State and federal laws also impose limits on credit account interest rates and fees, and their disclosure, as well as the time frame in which judicial actions may be initiated to enforce the collection of consumer accounts. There are numerous other federal, state, local and even international laws and regulations related to, among other things, privacy, identity theft, telephonic and electronic communications, sharing and use of consumer information that apply to our business and to our employees’ interactions and communications with others. For example, the Federal Trade Commission's Telemarketing Sales Rule applies a number of limitations and restrictions on our ability to make outbound calls on behalf of our clients and our ability to encourage customers to purchase higher value products and services on inbound calls. Similarly, the Telephone Consumer Protection Act of 1991, which among other things governsprotect the use of certain automated calling technologies, appliestheir content. In order to callsprovide the highest level of Services and best experience for our customers and end users, we may from time to customers. Many states also have telemarketing laws that may applytime seek expansion of our licenses to provide us with greater functionality of our business, even if the call originates from outside the state. Additionally, some of the laws directed toward credit originators, suchServices as the Truth in Lending Act and the Fair Credit Billing Act, can affect our operations because our receivables were originated through credit transactions. These laws, among others, may give consumers a legal cause of action against us or may limit our ability to recover amounts owed with respectit relates to the receivables.

Federal and state regulators are empoweredrelevant content. The inability to examine and take enforcement actions for violationsexpand our licenses, or the lack of these laws and regulationsrenewal, or for practices, policiestermination, of one or procedures they deem non-compliant, unfair, unsafemore of our license agreements, or unsound. Moreover, lawsuits may be brought by appropriate regulatory agencies, attorneys general and private parties for non-compliance with these laws and regulations. Accordingly,the renewal of a failure to comply with the laws and regulations applicable to our businesslicense agreement on less favorable terms, could have a material adverse effect on us.our business, financial condition, and results of operations. See “Risk Factors—Risks Related to Our Business—We depend upon third-party licenses for substantially all of the content we stream and an adverse change to, loss of, or claim that we do not hold any necessary licenses may materially adversely affect our business, operating results, and financial condition.”

NewCompetition

Our competitive market is made up of a variety of small to large companies, depending upon the area that we are competing within.

In the OOH market, we compete with several small, fragmented companies. Our direct competitors include Atmosphere, Stingray, and Rockbot. We believe that the major competitive factors in our OOH marketplace are price, technology, quality music video content, and other entertainment content.

In the OTT market, we compete with a significant number of large and small companies as we compete to secure our service on OTT devices and, once on the service, we compete for individual viewers of our product. Our competitors include Vevo, Jukin Media, and Stingray. We believe that the major competitive factors in our OTT marketplace are quality content and revenue share splits.

In the consumer protectionapplication market, we compete with a large number of audio-only companies for music but very few for music videos. Our direct competitors include Xcite and privacy protection laws or regulationsYouTube Music. We believe that the major competitive factors in our OOH marketplace are stickiness/social aspects of the relevant mobile application, curation, and price.

Marketing and Sales

Our sales and marketing efforts are primarily focused on reaching our OOH customers. Historically, our sales cycle from first contact with a potential customer to adoption of our Services was relatively long and met with varying degrees of success, as the A/V equipment required to run our Service was often considered expensive by many of the venues looking to acquire it. Our sales and marketing efforts depended almost entirely on direct marketing by our internal sales representatives, including multiple contacts, onsite demonstrations of our services, and potentially on-site installation and technical support, when needed. The introduction of our Loop Player for OOH venues has enabled us to adopt a digital marketing strategy, in addition to our direct marketing.

Upon introduction of our proprietary Loop Player, our sales and marketing strategy for OOH customers has consisted of a bottom-up and top-down approaches. Our bottom-up approach markets our Loop Player and our OOH business through digital marketing to potential business customers for use at their individual venues. The marketing reaches these businesses through the Internet, mobile devices, social media, search engines, and other digital channels. Our digital marketing campaign targets businesses in certain industries that are more likely to impose additional requirementstake up our Services and become a customer, as determined by our past experience and by analyzing and identifying leads sourced from our online marketing channels. We are able to mail a physical Loop Player to individual businesses that sign up for our services online and are verified by us and then utilize our team of customer service personnel, digital prompts, including text messages, and promotional rewards to ensure activation of the Loop Player after receipt by the potential customer. For Subscription Services, a sales representative will call the potential business customer to better communicate the various subscription services pricing and availability.

Our top-down approach for OOH marketing and sales relies on our internal sales team targeting large, national or regional, franchisee or corporate-owned, businesses, to promote our Loop Player and Services in multiple venues controlled by them. We often will obtain a lead into these businesses from individual venues in such business’ network of venue operators and owners. The top-down approach has a longer sales cycle, but often results in a greater reach and distribution of our Loop Player and Services to multiple venues at a single time, once adopted.

Our sales and marketing efforts on our D2C consumer business is more limited and relies on our internal direct marketing and sales team to approach various Smart TV and CTV operators, distributors, and manufacturers. We seek to meet their needs by providing compelling content for their networks and platforms through our Loop App or otherwise.

We also seek to cross-promote our OOH and D2C businesses on each respective platform and believe greater penetration of our OOH business will help drive exposure to the enforcementpublic consumers of our D2C products.

Intellectual Property

We have developed our own software, computer code and recoveryrelated items to provide our service and do not materially rely on consumer credit card or installment accounts, telephonic sales, Internet communicationsany third-party providers for the same. Our Loop Player is a proprietary device, designed by us and other portions ofis subject to patents.

Our intellectual property rights are important to our business. We cannot ensurebelieve we will come to rely on a combination of patent, copyright, trademark, service mark, trade secret, and other rights in the United States and other jurisdictions, as well as confidentiality procedures and contractual provisions to protect our proprietary technology, processes, and other intellectual property. We will protect our intellectual property rights in a number of ways including entering into confidentiality and other written agreements with our employees, customers, consultants, and partners in an attempt to control access to and distribution of our documentation and other proprietary technology and other information. Despite our efforts to protect our proprietary rights, third parties may, in an unauthorized manner, attempt to use, copy, or otherwise obtain and market or distribute our intellectual property rights or technology.

U.S. patent filings are intended to provide the holder with a right to exclude others from making, using, selling, or importing in the United States the inventions covered by the claims of granted patents. Our patents, including our pending patents, if granted, may be contested, circumvented, or invalidated. Moreover, the rights that some of the receivables weremay be granted in those issued and pending patents may not established as a result of identity theftprovide us with proprietary protection or unauthorized use of creditcompetitive advantages, and accordingly, we willmay not be able to recoverprevent third parties from infringing those patents. Therefore, the amountexact benefits of theseour issued patents and our pending patents, if issued, and the other defaulted consumer receivables. As a purchaser of defaulted consumer receivables,steps that we may acquire receivables subjecthave taken to legitimate defenses on the part of the consumer. In general,protect our account purchase contracts allow usintellectual property cannot be predicted with certainty. See “Risk Factors—Risks Related to returnOur Business—Failure to the debt seller certain defaulted consumer receivables that may not be collectible, due to these and other circumstances. Upon return, the debt sellers are required to replace the receivables with similar receivables or repurchase the receivables. These provisions limit, to some extent,protect our potential losses on such accounts.

Employees

We currently have no employees other than our sole officer and director, Mr. Fu. Our officer serves us on a part time basis and is not compensated at this time. We also hired Ms. Zixiao Chen and Desert Skyline asintellectual property could substantially harm our business, consultants.operating results, and financial condition.”

ItemITEM 1A. Risk FactorsRISK FACTORS

An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below together with all of the other information included in this Annual Report before making an investment decision with regard to our securities. The statements contained herein or incorporated herein that are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. If any of the following risk factors could materially affectrisks actually occurs, our business, financial condition, andor results of operations. These risk factors andoperations could be harmed. In that case, you may lose all or part of your investment. In addition to the other information provided in this Annual Report, on Form 10-Kyou should be carefully consideredconsider the following risk factors in evaluating our business. They are provided for investors as permitted by the Private Securities Litigation Reform Actbusiness before purchasing any of 1995. Itour common stock. Although it is not possible to identify or predict all such factorsof the risks and therefore, the following should not be considered to be a complete statement of all the uncertainties we face.face, we believe the discussion below includes all of the risks that are material to our business.

Summary Risk Factors

Risks Related to our Financial Condition

4Risks Related to Our Business

Risks Related to Owning Our Common Stock

Risks Related to Our Financial Condition

We have required debt and Businessequity financing to maintain operations.

BecauseWe have in the past failed and expect to for the foreseeable future to continue to fail to create cashflows from revenues sufficient to cover basic costs. As a result, we have relied heavily on convertible debt and equity financing. These financings have created a limiteddilutive effect on our common stock and may continue to do so. For the foreseeable future, we will continue to rely upon debt and equity financing to maintain operation of the Company.

We have generated minimal revenues under our current business model, which makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance.

For the year ended December 31, 2020, substantially all our revenues were derived from the historical business of ScreenPlay, which relies on a Subscription service-based model using older and more expensive A/V technology. Our revenues for 2020 did not contain any significant contribution from any Ad-Supported Services or the provision of the Loop Player to OOH venues or our Loop App to retail consumer end users. As a consequence, it is difficult, if not impossible, to forecast our future results based upon our historical data. Our projections are based upon our best estimates on future growth and the development of our business plan. Because of the related uncertainties, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in sales, revenues, or expenses. If we make poor budgetary decisions as a result of unreliable data, we may never become profitable and may continue to incur losses, which may result in a decline in our stock price.

We have incurred significant operating history, youlosses in the past, and we may not be able to accurately evaluategenerate sufficient revenue to be profitable, or to generate positive cash flow on a sustained basis. In addition, our operations.revenue growth rate may decline.

We are a startup company.have incurred significant operating losses in the past and, as of December 31, 2020, had an accumulated deficit. For the years ended December 31, 2020 and 2019, our operating losses were $15.4 million and $11.5 million, respectively. We have had limited operationsincurred significant costs to datelicense content and have generated limited revenues. Therefore, we have a limited operating history upon whichcontinue to evaluate the merits of investing in our company. Potential investors should be aware of the difficulties normally encountered by new companiespay royalties or minimum guarantees to record labels, publishers, and the high rate of failure ofother copyright owners for such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the operationscontent. We cannot guarantee that we planwill generate sufficient revenue from our efforts to undertake.  These potential problems include, but are not limitedmonetize the Service via the sale of our Premium Service and generating advertising revenue, including on our Ad-Supported Service, to unanticipated problems relatingoffset the cost of our content and these royalty expenses. If we cannot successfully earn revenue at a rate that exceeds the operational costs, including royalty expenses and guarantee payments to the ability to generate sufficient cash flow to operateMusic Labels, associated with our business, and additional costs and expenses that may exceed current estimates. We expect to incur significant losses into the foreseeable future. We recognize that if the effectiveness of our business plan is not forthcoming,Service, we will not be able to achieve or sustain profitability or generate positive cash flow on a sustained basis.

Additionally, we also expect our costs to increase in future periods, which could negatively affect our future operating results and ability to achieve profitability. We expect to continue to expend substantial financial and other resources on:

These investments may not result in increased revenue or growth in our business. If we fail to continue to grow our revenue and overall business, operations. our business, operating results, and financial condition would be harmed.

There is no history upon which to base any assumption as to the likelihood that we will prove successful, and it is doubtful that we will continue to generate operating revenues or ever achieve profitable operations.  If we are unsuccessful in addressing these risks,substantial doubt about our business will most likely fail.

Our investors may lose their entire investment because our financial status creates a doubt whether we will continue as a going concern.

Our auditors, in their opinion provided for our fiscal year end June 30, 2018 audited financial statements and notes thereto, have stated that currently we do not have sufficient cash nor do we have a significant source of revenues to cover our operational costs and allow usability to continue as a going concern. We seekconcern and if we are unable to raise operating capitalgenerate significant revenue or secure additional financing, we may be unable to implement our business plan and grow our business.

We are a small and emerging media company that is in an offeringthe process of rolling out a new business plan as our common stock.  Our plan specifies a minimum amount of $250,000 in additional operating capitalproducts and services have only recently been fully operational and ready for delivery to our customers. Consequently, we have not generated sufficient revenues to operate our business. We have an accumulated deficit and have incurred operating losses for years and expect losses to continue during the next twelve months. However, there can be no assuranceremainder of fiscal 2021 and beyond. Our independent registered public accounting firm has indicated in their report that these conditions raise substantial doubt about our ability to continue as a going concern for a period of 12 months from the Company will be successful in raisingissuance date of this capital in a secondary offering of securities.

We are dependent on outside financing forreport. The continuation of our operations.

Because we have generated limited revenues and currently operate atbusiness as a loss, we are completelygoing concern is dependent onupon the continued availabilityfinancial support from our current and potential stockholders. The Company’s primary source of operating funds since inception has been cash proceeds from debt and equity financing in ordertransactions. The ability of the Company to continue our business.as a going concern is dependent upon its ability to generate sufficient revenue and its ability to raise additional funds by way of its debt and equity financing efforts. There can be no assurance that adequate financing will be available in a timely manner, on acceptable terms, or at all.

There is uncertainty regarding our ability to grow our business to a greater extent than we can with our existing financial resources without additional financing. We have no agreements, commitments, or understandings to secure additional financing at this time. Our long-term future growth and success is dependent upon our ability to continue selling our services, generate cash from operating activities and obtain additional financing. We may be unable to continue selling our products and services, generate sufficient cash from operations, sell additional shares of common stock, or borrow additional funds. Our inability to enableobtain additional cash could have a material adverse effect on our ability to grow our business to a greater extent than we can with our existing financial resources.

We will require additional capital to support business growth and objectives, and this capital might not be available on acceptable terms, if at all.

We intend to continue to make investments to support our business growth and will require additional funds to respond to business challenges, including the need to develop new features or enhance our existing Service, expand into additional markets around the world, improve our infrastructure, or acquire complementary businesses and technologies. Accordingly, we have in the past engaged, and may in the future engage, in equity and debt financings to secure additional funds. If we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences, and privileges superior to those of holders of our common stock. Any debt financing, we secure in the future could also contain restrictive covenants relating to our capital-raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and pursue business opportunities, including potential acquisitions. We may not be able to obtain additional financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our operationsbusiness growth, acquire or retain users, and to respond to business challenges could be significantly impaired, and our business may be harmed.

We may not be able to utilize all, or any, of our net operating loss carryforwards.

We have significant net operating loss carryforwards. As of December 31, 2020, we had net operating loss carryforwards of $18 million in the United States relating to federal taxes and $17.9 million in the United States relating to state taxes. In certain jurisdictions, if we are unable to earn sufficient income or profits to utilize such carryforwards before they expire, they will no longer be available to offset future income or profits.

Risks Related to Our Business

If our efforts to attract prospective OOH customers and D2C users and to retain existing customers and users of our Service are not successful, our growth prospects and revenue will be adversely affected.

Our ability to grow our OOH business and generate revenue depends on retaining, expanding, and effectively monetizing our OOH customer base, including by increasing the number of venues that have adopted our Service and increasing advertising revenue on our OOH Ad-Supported Service delivered through our Loop Player and monetizing content across the OOH Service. We must convince prospective OOH customers of the benefits of our Service and our existing users of the continuing value of our Service. Our ability to attract new customers, retain existing customers, and convert users of our OOH Premium subscription service to our OOH Ad-Supported Service depends in large part on our ability to continue to offer compelling curated content, leading technologies and products like the Loop Player, superior functionality, and an engaging customer experience.

Our ability to grow our D2C business and generate revenue depends on retaining, expanding, and effectively monetizing our total user base, including by increasing advertising revenue on our D2C Ad-Supported Service, increasing the number of subscribers to our Premium Service, and finding ways to monetize content across the Service. We must convince prospective users of the benefits of our Service and our existing users of the continuing value of our Service. Our ability to attract new users, retain existing users, and convert users of our Ad-Supported Service to subscribers to our Premium Service depends in large part on our ability to continue to offer leading technologies and products, compelling highly curated content, superior functionality, and an engaging user experience. As consumer tastes and preferences change on the Internet and with mobile devices and other internet-connected products, we will need to enhance and improve our existing Service, introduce new services and features, and maintain our competitive position with additional technological advances and an adaptable platform. If we fail to keep pace with technological advances or fail to offer compelling product offerings and state-of-the-art delivery platforms to meet consumer demands, our ability to grow or sustain the reach of our Service, attract and retain users, and increase our Premium Subscribers to our Loop App may be adversely affected.

In addition, in order to increase our advertising revenue, we also seek to increase the listening time that our Ad-Supported OOH customers and D2C users spend on our Ad-Supported Service and find new opportunities to deliver advertising to users on the Service. The more content users stream on the Ad-Supported Service, the more advertising inventory we generally have to sell. Further, growth in our Ad-Supported user base increases the size and scope of user pools targeted by advertisers, which improves our ability to deliver relevant advertising to those users in a manner that maximizes our advertising customers’ return on investment and that ultimately allows us to better demonstrate the effectiveness of our advertising solutions and justifies a pricing structure that is advantageous for us. If we fail to grow our Ad-Supported OOH customers and user base, the amount of content streamed, and the listening time spent by our Ad-Supported OOH customers and users, we may be unable to grow Ad-Supported revenue.

In order to increase our Ad-Supported OOH customers and users and our Premium Subscribers, we will need to address a number of challenges, including:

Failure to overcome any one of these challenges could have a material adverse effect on our business, operating results, and financial condition.

Moreover, the provisions of certain of our license agreements may require consent to implement improvements to, or otherwise change, our Service. We may not be able to obtain consent from our rights holders to add additional features and functionality to our Service or our rights holders may be delayed in providing such consent, which may hinder our ability to be responsive to our users’ tastes and preferences and may make us less competitive with other services.

We face and will continue to face competition for Ad-Supported Users, Premium Subscribers, and user listening time.

We compete for the time and attention of our D2C users with other content providers based on a number of factors, including quality of experience, relevance, diversity of content, ease of use, price, accessibility, perception of advertising load, brand awareness, and reputation.

We compete with providers of music videos and other short form unscripted video content, which is purchased or available for free and playable on mobile or other connected devices, including CTVs. These forms of media may be downloaded or accessed by content streams from other online services, including YouTube and Vevo. Many of our current or future competitors are already entrenched or may have significant brand recognition, existing user bases, and/or ability to bundle with other goods and/or services, both globally and regionally, and/or markets which we seek to penetrate.

We also compete with providers of non-music content that offer an on-demand catalog of differing content that is similar to certain of our content. We face increasing competition from a growing variety of content providers that seek to differentiate their service by content offering and product features, and they may be more successful than us in predicting user preferences, providing popular content, and innovating new features.

We believe that companies with a combination of technical expertise, brand recognition, financial resources, and digital media experience also pose a significant threat of developing competing music video and other video distribution technologies. If known incumbents in the digital media or entertainment space choose to offer competing services, they may devote greater resources than we have available, have a more accelerated time frame for deployment, and leverage their existing user base and proprietary technologies to provide services that our users and advertisers may view as superior. Our current and future competitors may have higher brand recognition, more established relationships with content licensors and mobile device manufacturers, greater financial, technical, and other resources, more sophisticated technologies, and/or more experience in the markets in which we compete. Our current and future competitors may also engage in mergers or acquisitions with each other to combine and leverage their customers and audiences. Our current and future competitors may innovate new features or introduce new ways of consuming or engaging with content that cause our users to use or switch to another product, which would negatively affect our user retention, growth, and engagement.

We compete for a share of advertisers’ overall marketing budgets with other content providers on a variety of factors, including perceived return on investment, effectiveness and relevance of our advertising products, pricing structure, and ability to deliver large volumes or precise types of advertisements to targeted user demographic pools. We also compete for advertisers with a range of internet companies, including major internet portals, search engine companies, social media sites, and mobile applications, as well as traditional advertising channels such as terrestrial radio and television.

Large internet companies with strong brand recognition, such as Facebook, Google, Amazon, and Twitter, have significant numbers of sales personnel, substantial advertising inventory, proprietary advertising technology solutions, and traffic across web, mobile, and connected devices that provide a significant competitive advantage and have a significant impact on pricing for reaching these user bases. Failure to compete successfully against our current or future competitors could result in the loss of current or potential advertisers, a reduced share of our advertisers’ overall marketing budget, the loss of existing or potential users, or diminished brand strength, which could adversely affect our pricing and margins, lower our revenue, increase our research and development and marketing expenses, and prevent us from achieving or maintaining profitability.

We depend upon third-party licenses for substantially all of the content we stream and an adverse change to, loss of, or claim that we do not hold any necessary licenses may materially adversely affect our business, operating results, and financial condition.

To secure the rights to stream content, we enter into license agreements to obtain licenses from rights holders such as record labels, recording artists, music publishers, performance rights organizations, collecting societies, and other copyright owners or their agents, and pay royalties or other consideration to such parties or their agents. We cannot guarantee that our efforts to obtain all necessary licenses to stream content will be successful, nor that the licenses available to us now will continue to be available in the future at rates and on terms that are favorable or commercially reasonable or at all. The terms of these licenses, including the royalty rates that we are required to pay pursuant to them, may change as a result of changes in our bargaining power, the industry, laws and regulations, or for other reasons. Increases in royalty rates or changes to other terms of these licenses may materially impact our business, operating results, and financial condition. Our license agreements with the largest music companies for our OOH companies for our OOH business were entered into years ago and those music companies have requested a review and update of those licenses. The updating of those licenses (or entering into new licenses to cover our OOH business) is expected to increase our license costs associated with such rights, including our minimum guarantee payment obligations.

We enter into license agreements to obtain rights to stream music videos, including from the major record labels who hold the rights to stream a significant number of sound recordings—Universal Music Group, Sony Music Entertainment, and Warner Music Group. If we fail to maintain and renew these licenses our business, operating results, and financial condition could be materially harmed.

We generally obtain licenses for two types of rights with respect to musical compositions: reproduction and public performance rights. We negotiate directly for these rights. We have obtained direct licenses for public performance rights with the three largest publishers for our consumer business and are in the process of obtaining such licenses for our OOH business.

In the United States, public performance rights are generally obtained through intermediaries known as PROs, which negotiate blanket licenses with copyright users for the public performance of compositions in their repertory, collect royalties under such licenses, and distribute those royalties to music publishers and songwriters. The royalty rates available to us today may not be available to us in the future. Licenses provided by two of these PROs, ASCAP and BMI, cover much of the music we stream and ASCAP and BMI are governed by consent decrees relating to decades-old litigations. An increase in the number of compositions that must be licensed from PROs that are not subject to the consent decrees could likewise impede our ability to license public performance rights on favorable terms.

In other parts of the world, including Latin America, we obtain reproduction and performance licenses for musical compositions either through local collecting societies representing publishers or from publishers directly, or a combination thereof. We cannot guarantee that our licenses with collecting societies and our direct licenses with publishers provide full coverage for all of the musical compositions we make available to our users in such countries. In markets that lack collecting society infrastructure, such as in the Middle East and parts of Africa and Asia Pacific, it is extremely difficult to identify who owns the publishing rights in the content we stream. This practical obstacle creates additional risk exposure as there inevitably will be licensing gaps in the content we stream, and these risks may increase as we look to expand into new developing markets with uncertain publishing licensing landscapes.

With respect to non-music content, we obtain distribution rights directly from rights holders. We either negotiate licenses directly with individuals or entities. We are dependent on those who provide content on our Service complying with the terms and conditions of our license agreements. However, we cannot guarantee that rights holders or content providers will comply with their obligations, and such failure to do so may materially impact our business, operating results, and financial condition.

There is also no guarantee that we have all of the licenses we need to stream content, as the process of obtaining such licenses involves many rights holders, some of whom are unknown, and myriad complex legal issues across many jurisdictions, including open questions of law as to when and whether particular licenses are needed. Additionally, there is a risk that rights holders, creators, performers, writers and their agents, or societies, unions, guilds, or legislative or regulatory bodies will create or attempt to create new rights or regulations that could require us to enter into license agreements with, and pay royalties to, newly defined groups of rights holders, some of which may be difficult or impossible to identify.

Even when we are able to enter into license agreements with rights holders, we cannot guarantee that such agreements will continue to be renewed indefinitely. For example, from time to time, our license agreements with certain rights holders and/or their agents expire while we negotiate their renewals and, per industry custom and practice, we may enter into brief (for example, month-, week-, or even days-long) extensions of those agreements or provisional licenses and/or continue to operate on an at will basis as if the license agreement had been extended, including by our continuing to make content available. During these periods, we may not have assurance of long-term access to such rights holders’ content, which could have a material adverse effect on our business and could lead to potential copyright infringement claims. It is also possible that such agreements will never be renewed at all. License agreements are generally restrictive as to how the licensed content is accessed, displayed, and manipulated, as licensors seek to protect the use of their content. In order to provide the highest level of Services and best experience for our customers and end users, we may from time to time seek expansion of our licenses to provide us with greater functionality of our Services as it relates to the relevant content. The inability to expand our licenses, or the lack of renewal, or termination, of one or more of our license agreements, or the renewal of a license agreement on less favorable terms, could have a material adverse effect on our business, operating results, and financial condition.

We believehave no control over third-party providers of our content. The concentration of control of content by our major providers means that even one entity, or a small number of entities working together, may unilaterally affect our revenues will be highly dependent on a few industriesaccess to music video and any decrease in demand for outsourced services in these industries would likely reduce our revenues and seriously harm our business.other content.

We believerely on various rights holders, over whom we have no control, for the content we make available on our major clientsService. We cannot guarantee that these parties will be concentrated in the travel and convention industries. Increased competition, consolidation,always choose to license to us or license to us on terms that are acceptable to us.

The music industry has a downturn,high level of concentration, which means that one or a reversalsmall number of the trend toward outsourcing in any of these industries, would likely result in a decrease in the demand for our services or the cancellation or non-renewal of contracts. In addition, we believe we will be dependent in large partentities may, on the projected growth of these industries, which may not materialize. These industries have been cyclical and vulnerable to significant downturns in the past, and adverse developments in these industries could unfavorablytheir own, take actions that adversely affect our business.

We intend For example, with respect to servemusic video content, the A/V recordings licensed to us under our agreements with Universal Music Group, Sony Music Entertainment, and Warner Music Group makes up the vast majority of the music currently consumed on our Service. Our business may be adversely affected if our access to music is limited or delayed because of deterioration in our relationships with one or more of these rights holders or if they choose not to license to us for any other reason. Rights holders also may attempt to take advantage of their market power (including by leveraging their publishing affiliate) to seek onerous financial or other terms from us or otherwise impose restrictions that hinder our ability to further innovate our Services and content offerings. This may be of particular concern in markets that are highly competitive,where local content is important and increased competition, our inability to compete successfully against currentsuch local content is held by local major labels or future competitors, pricing pressures or inabilityeven individual artists, making it difficult to obtain such local content at all or on economically favorable terms. In addition, publishers’ fractional ownership of shares of musical works enhances their market share couldpower. As a result, in increased costs and reduced operating margins.

We will facethe loss of rights to a major publisher catalogue would force us to take down a significant competition from our potential clients’ in-house customer service groups and growing competition from other companies similar to ours, including thoseportion of popular repertoire in the United States, China, Malaysia,applicable territory or territories, which would significantly disadvantage us in such territory or territories. The lack of complete metadata with respect to publisher ownership may also present challenges in taking down all the Philippines, India and elsewhere. We expect this competitiontracks of a given publisher. Even if we can secure rights to increase. These companies have greater financial, personnelmusic video content from record labels and other resources, longer operating histories, more recognizable brand namescopyright owners, recording artists may object and more established client relationships. Manymay exert public or private pressure on those record labels or copyright owners or other third parties to discontinue licensing rights to us, hold back content from us, or increase royalty rates. As a result, our ability to continue to license rights to music video content is subject to convincing a broad range of these companies will compete with us primarily on pricestakeholders of the value and are often able to offer lower costs to potential clients. Ifquality of our Service. To the extent that we are unable to compete with in-houselicense a large amount of content or outsource competitors, we may neverthe content of certain popular artists, our business, operating results, and financial condition could be successful in establishing market share and we may go out of business.materially harmed.

We are a party to many license agreements that are complex and impose numerous obligations upon us that may make it difficult to operate our business and provide all the functionality we would like for our Services, and a breach of such agreements could adversely affect our business, operating results, and financial condition.

Many of our license agreements are complex and impose numerous obligations on us, including obligations to, among other things:

Many of our license agreements grant the licensor the right to audit our compliance with the terms and conditions of such agreements. Some of our license agreements also include steering, non-discrimination, and so-called “most favored nations” provisions, which require that certain material terms of such agreements are no less favorable than those provided in our agreements with any other similarly situated licensor. If triggered, these provisions could cause our payments or other obligations under those agreements to escalate substantially. Additionally, some of our license agreements require consent to undertake certain business initiatives and, without such consent, our ability to undertake or continue operating new business initiatives may be limited. This could hurt our competitive position.

If we materially breach any of these obligations or any other obligations set forth in any of our license agreements, or if we use content in ways that are found to exceed the scope of such agreements, we could be subject to monetary penalties, and/or rights holders could impede our business by withholding content, discounts, and bundle approvals and the rights to launch new service offerings, and could ultimately terminate our rights under such license agreements, any of which could have a material adverse effect on our business, operating results, and financial condition.

Our contracts will provide for termination byroyalty payment scheme is complex, and it is difficult to estimate the amount payable under our clientslicense agreements.

Under our license agreements and relevant statutes, we must pay all required royalties to record labels, music publishers, and other copyright owners in order to stream content. The determination of the amount and timing of such payments is complex and subject to a number of variables, including the type of content streamed, the country in which it is streamed, the service tier such content is streamed on, short notice and in many cases without penalty. We also will not have exclusive arrangements with our clients or a minimum revenue commitment from our clients, which creates uncertainty about the volume of services we will provide and the amount of revenuesrevenue generated by the streaming of the content, the identity of the license holder to whom royalties are owed, the current size of our user base, our current ratio of Ad-Supported users to Premium Subscribers in each of our OOH and D2C businesses, the applicability of any most favored nations provisions, and any applicable advertising fees and discounts, among other variables. Additionally, we have certain arrangements whereby royalty costs are paid in advance or are subject to minimum guaranteed amounts. An accrual is estimated when actual royalty costs to be incurred during a contractual period are expected to fall short of the minimum guaranteed amount. Additionally, we also have license agreements that include so-called “most favored nations” provisions that require that the material terms of such agreements are the most favorable material terms provided to any music licensor, which, if triggered, could cause our royalty payments under those agreements to escalate substantially. As we have only recently begun to grow our D2C Service and have yet recognize substantial revenue from such services and may not do so during the initial term of our licenses, we expect that any minimum guaranteed payments on licenses required for that service will be the maximum we will generate from any of our clients.need to pay out under those licenses for the relevant time period.

We believecannot assure you that the internal controls and systems we use to determine royalties payable will always be effective. We have in the past identified a material weakness in our potential clients will terminate their relationshipinternal controls and may identify additional material weaknesses in the future. If we fail to implement and maintain effective controls relating to rights holder liabilities, we may underpay/under-accrue or overpay/over-accrue the royalty amounts payable to record labels, music publishers, and other copyright owners. Underpayment could result in (i) litigation or other disputes with us or significantly reduce their demand for our services duerecord labels, music publishers, and other copyright owners; (ii) the unexpected payment of additional royalties in material amounts; and (iii) damage to a variety of factors, including factors that are unpredictable and outside of our control. The service industry in which we plan to operate does not have favorable long term contacts with exclusive relationships. We anticipate that our contracts will be terminable on short notice without penalty. The services we plan to provide to a client could be reduced for a variety of reasons, including our client's decision to move more customer management functions in-house, or to an affiliated outsourcing provider or one of our competitors, changing economic factors, internal financial challenges or political or public relations reasons. Any significant reduction in client demand for our service would harm our business relationships with record labels, music publishers, other copyright owners, and negatively affect operating results.

We believe thatartists and/or artist groups. If we will often encounter a long sales and implementation cycle requiring significant negotiations by our sales force and a financial commitments by our clients, which they may be unwilling or unable to make.

We spend a lot of time and resources, and expect to continue to spend a lot of time and resources, to negotiate sales contracts with clients that may or may not lead to a sale of services. We believe that the sales and implementation of our proffered services will involve significant resource commitments by us and our potential clients. We anticipate expending substantial time and money addressing potential clients’ service and operational questions and assessing the feasibility of integrating our services. Decisions relating to outsourcing business processes generally involve the evaluation of the service by our potential clients’ senior management and a significant number of client personnel in various functional areas, each having specific and often conflicting requirements. We may expend significant resources, including funds and management time, during the sales cycle. Ultimately, the potential client may not engage our services or may cancel services before we have recovered the resources expended during the sales and implementation cycle. Unsuccessful or delayed sales and implementations may negatively impact our revenues and margins.

We may experience significant employee turnover rates andoverpay royalties, we may be unable to hirereclaim such overpayments, and our profits will suffer. Failure to accurately pay our royalties may adversely affect our business, operating results, and financial condition.

Minimum guarantees and advances required under certain of our license agreements may limit our operating flexibility and may adversely affect our business, operating results, and financial condition.

Certain of our license agreements contain significant minimum guarantee or advanced payments. Such minimum guarantees related to our content acquisition costs are not always tied to our revenue and/or user growth forecasts (e.g., number of users, active users, Premium subscribers), or the number of video music sound recordings and musical compositions used on our Service. Accordingly, our ability to achieve and sustain profitability and operating leverage on our Service in part depends on our ability to increase our revenue through increased sales of our Service and advertising sales on terms that maintain an adequate gross margin. The duration of our license agreements for sound recordings and musical compositions that contain minimum guarantees is frequently two years, but we do not currently have enough customers and do not anticipate acquiring enough customers whose revenue could cover such minimum guarantees and any existing customers may cancel their Service at any time. Our forecasts of customer acquisition or retention and advertising sales during the term of our license agreements do not meet the number of customers required to cover our minimum guarantee payments. To the extent our Service revenue growth or advertising sales do not materially increase during the term of our license agreements, our business, operating results, and financial condition will be adversely affected as a result of such minimum guarantees. In addition, the fixed cost nature of these minimum guarantees may limit our flexibility in planning for, or reacting to, changes in our business and the market segments in which we operate.

We rely on estimates of the market share of streaming content owned by each content provider, as well as our own user growth and forecasted advertising revenue, to forecast whether such minimum guarantees could be recouped against our actual content acquisition costs incurred over the duration of the license agreement. As we are in the early stages of developing our D2C business we expect the minimum guarantees not to be recouped for the foreseeable future.

Difficulties in obtaining accurate and comprehensive information necessary to identify the compositions embodied in music video sound recordings on our Service and the ownership thereof may impact our ability to perform our obligations under our licenses, affect the size of our catalog that can be offered to customers and end users, impact our ability to control content acquisition costs, and lead to potential copyright infringement claims.

Comprehensive and accurate ownership information for the musical compositions embodied in music videos is often unavailable to us or difficult or, in some cases, impossible for us to obtain, sometimes because it is withheld by the owners or administrators of such rights. We currently rely on the assistance of third parties to determine certain of this information. If the information provided to us or obtained by such third parties does not comprehensively or accurately identify the ownership of musical compositions, or if we are unable to determine which musical compositions correspond to specific sound recordings, it may be difficult or impossible to identify the appropriate rights holders from whom to obtain licenses or to whom to pay royalties. This may make it difficult to comply with the obligations of any agreements with those rights holders. This may also make it difficult to identify content for removal from the Service if we lose the rights to such musical compositions.

These challenges, and others concerning the licensing of musical compositions embodied in sound recordings and music videos on our Service, may subject us to significant liability for copyright infringement, breach of contract, or other claims.

We face many risks associated with our international expansion, including difficulties obtaining rights to stream content on favorable terms.

We are considering the further expansion of our operations into additional international markets. However, offering our Service in a new geographical area involves numerous risks and challenges. For example, the licensing terms offered by rights organizations and individual copyright owners in countries around the world are currently relatively expensive. Addressing licensing structure and royalty rate issues in any new geographic market requires us to make very substantial investments of time, capital, and other resources, and our business could fail if such investments do not succeed. There can be no assurance that we will succeed or achieve any return on these investments.

In addition to the above, expansion around the world exposes us to other risks such as:

As a result of these obstacles, we may find it impossible or prohibitively expensive to enter additional markets, or entry into foreign markets could be delayed, which could hinder our ability to grow our business.

If we fail to effectively manage our growth, our business, operating results, and financial condition may suffer.

Our rapid growth in recent months has placed, and will continue to place, significant demands on our management and our operational and financial infrastructure. In order to attain and maintain profitability, we will need to recruit, integrate, and retain enough sufficiently trained employeesskilled and experienced personnel who can demonstrate our value proposition to supportusers, advertisers, and business partners and who can increase the monetization of the content streamed on our Service, particularly in OOH venues and on CTVs and mobile devices. Continued growth could also strain our ability to maintain reliable service levels for our users, effectively monetize the video content streamed, develop and improve our operational and financial controls, and recruit, train, and retain highly skilled personnel. As our operations grow in size, scope, and complexity, we will need to improve and upgrade our systems and infrastructure, which could harmwill require significant expenditures and allocation of valuable technical and management resources. If we fail to maintain efficiency and allocate limited resources effectively in our business.organization as it grows, our business, operating results, and financial condition may suffer.

Our business emphasizes rapid innovation and prioritizes long-term customer and user engagement over short-term financial condition or results of operations. That strategy may yield results that sometimes do not align with the market’s expectations. If that happens, our stock price may be negatively affected.

The outsourcing service industryOur business is very labor intensiveexpected to grow and become more complex, and our success depends on our ability to attract, hirequickly develop and retain qualified employees. We will focus in particular on recruiting college-educated personnel with bilingual potentiallaunch new and compete for candidates with companies in our industry and in other industries.innovative products. Our growth will require that we continually hire and train new personnel. The outsourcing service industry has traditionally experienced high employee turnover. A significant increase inapproach to the turnover rate among our employees would increase our recruiting and training costs and decrease operating efficiency and productivity, and could lead to a decline in demand for our services. If this were to occur, we would be unable to service our clients effectively and this would reduce our ability to continue our growth and operate profitably.

Our operations could suffer from telecommunications or technology downtime, disruptions or increased costs.

We will be highly dependent on our computer and telecommunications equipment and software systems. In the normal coursedevelopment of our business we must record and process significant amounts of data quickly and accurately to access, maintain and expand the databases we use for our services. We will also be dependent on continuous availability of voice and electronic communication with customers. If we experience interruptions of our telecommunications network with our potential clients, we may experience data loss or a reduction in revenues. These disruptions could be the result of natural disasters, errors by our vendors, clients, or third parties, electronic or physical attacks by persons seeking to disrupt our operations, or the operations of our vendors, potential clients, or others. The temporary or permanent loss of equipment or systems through casualty or operating malfunction could reduce our revenues and harm our business.

We could cause disruptions to our clients' business from inadequate service and be liable therefore.

Our contracts will, in some cases, contain service level and performance requirements, including requirements relating to the timing and quality of responses to customer inquiries. The quality of services that we provide will be measured by quality assurance ratings, which are based in part on the results of customer satisfaction surveys and direct monitoring of interactions between our service providers and customers. Failure to meet service requirements of a potential client could disrupt the client's business and result in a reduction in revenues or a claim for substantial damages against us.

Risks Related to Legal Uncertainty

Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses.

Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002 and new SEC regulations, are creating uncertainty for companies such as ours. These new or changed laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance mattersunintended outcomes or decisions that are poorly received by our users, advertisers, or partners. We have made, and higher costs necessitated by ongoing revisionsexpect to disclosurecontinue to make, significant investments to develop and governance practices. We are committed to maintaining high standards of corporate governancelaunch new products, services, and public disclosure. As a result, we intend to invest resources to comply with evolving laws, regulationsinitiatives, which may involve significant risks and standards, and this investmentuncertainties, including the fact that such offerings may not be commercially viable for an indefinite period or at all, or may not result in increased generaladequate return of capital on our investments. No assurance can be given that such new offerings will be successful and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice,will not adversely affect our reputation, operating results, and financial condition. In certain instances, we prioritize our long-term customer and user engagement over short-term financial condition or results of operations. We may make decisions that reduce our short-term revenue or profitability if we believe that the decisions benefit the aggregate customer and user experience and will thereby improve our financial performance over the long-term. These decisions may not produce the long-term benefits that we expect, in which case our user growth and engagement, our relationships with advertisers and partners, as well as our business, operating results, and financial condition could be seriously harmed.

If we fail to accurately predict, recommend, curate and play content that our customers and users enjoy, we may fail to retain existing customers and users and attract new customers and users in sufficient numbers to meet investor expectations for growth or to operate our business profitably.

We believe that a key differentiating factor between Loop Media and other streaming content providers in the OOH and D2C markets is our ability to curate content and deliver that content to customers and users for them to enjoy. We have invested, and will continue to invest, significant resources in our content curation and technologies that help predict what customers and users will enjoy; however, such investments may not yield an attractive return and such refinements may not be effective. The effectiveness of our ability to predict user preferences and curate content tailored to our customers and users’ individual tastes depends in part on our ability to gather and effectively analyze large amounts of customer and user data. While we have a large catalog of music videos and other content available to stream, we must continuously identify, analyze, and curate additional content that our customers request and that our users will enjoy and we may not effectively do so. Failure to do so could materially adversely affect our ability to adequately attract and retain users, increase content hours consumed, and sell advertising to meet investor expectations for growth or to operate the business profitably.

If we are unable to obtain revenue from our Service on CTVs and mobile and connected devices, our results of operations may be materially adversely affected.

Our business model with respect to monetization of our Service on CTVs and mobile and connected devices is still evolving. As we expand into providing content direct to consumers, there is increasing pressure to monetize mobile and other connected devices, including CTVs and other in-home devices. We offer our Service through our Loop App on CTVs and mobile and connected devices, from which we seek to generate advertising revenue; however, to date, we primarily rely on our OOH Service to generate revenue. If we are unable to effectively monetize our D2C Service on CTVs and mobile and connected devices, our business, operating results, and financial condition may suffer.

Expansion of our operations to deliver content beyond music video, subjects us to increased business, legal, financial, reputational, and competitive risks.

Expansion of our operations to deliver content beyond music videos involves numerous risks and challenges, including increased capital requirements, new competitors, and the need to develop new strategic relationships. Growth in these areas may require additional changes to our existing business model and cost structure, modifications to our infrastructure, and exposure to new regulatory, legal, and reputational risks, including infringement liability, any of which may require additional expertise that we currently do not have. We may not be able to generate sufficient revenue from non-music video content to offset the costs of creating or acquiring this content. Further, we have initially established a reputation as a music video streaming service and our ability to gain acceptance and listenership for other non-music video content, and thus our ability to attract users and advertisers to this content, is not certain. Failure to successfully monetize and generate revenues from such content, including failure to obtain or retain rights to non-music video content on acceptable terms, or at all, or to effectively manage the numerous risks and challenges associated with such expansion could adversely affect our business, operating results, and financial condition.

Streaming depends on effectively working with operating systems, online platforms, hardware, networks, regulations, and standards we do not control. Changes in our Service or those operating systems, hardware, networks, regulations, or standards, and our limitations on our ability to access those platforms, operating systems, hardware, or networks may seriously harm our business.

We rely on a variety of operating systems, online platforms, hardware, and networks to reach our users. These platforms range from desktop and mobile operating systems and application stores, to wearables and OTT distribution platforms and services. The owners or operators of these platforms and services may not share our interests and may restrict our access to them or place conditions on access that would materially affect our ability to access those platforms and services. In particular, where the owner of a platform is also our direct competitor, the platform may attempt to use this position to affect our access to users and ability to compete. For example, an online platform might arbitrarily remove our Service from its platform, deprive us of access to business-critical data, or engage in other harmful practices. Online platforms also may unilaterally impose certain requirements that negatively affect our ability to convert users of our Loop App to the Premium Service, such as conditions that limit our freedom to communicate promotions and offers to our users. Similarly, online platforms may force us to use the platform’s payment processing systems that may be inferior to, and more costly than, other payment processing services available in the market. Online platforms frequently change the rules and requirements for services like ours to access the platform, and such changes may adversely affect the success or desirability of our Service. To maintain certain elements of the Service on a platform, we may need to make additional concessions to the platform operator that may adversely affect other aspects of the business or require us to invest significant expenses. Online platforms may limit our access to information about users, limiting our ability to convert and retain them. Online platforms also may deny access to application programming interfaces or documentation, limiting functionality of our Service on the platform.

Furthermore, because devices providing access to our Service are not manufactured and sold by us, these devices may not perform reliably, and any faulty connection between these devices and our Service may result in consumer dissatisfaction toward us, which could damage our brand. We may not be able to comply with the new rules under the Sarbanes-Oxley Act relatedrequirements of various operating systems, online platforms, hardware, networks, regulations, and standards on which our Service depends, and failure to accounting controlsdo so could result in serious harm to our business.

If our security systems are breached, we may face civil liability and/or statutory fines, and/or enforcement action causing us to change our practices, and procedures,public perception of our security measures could be diminished, either of which would negatively affect our ability to attract and retain OOH Customers, Premium Subscribers, Ad-Supported Users, advertisers, content providers, and other business partners.

Techniques used to gain unauthorized access to data and software are constantly evolving, and we may be unable to anticipate or if material weaknessesprevent unauthorized access to data pertaining to our users, including credit card and debit card information and other personal data about our users, business partners, and employees. Like all internet services, our Service, which is supported by our own systems and those of third parties that we work with, is vulnerable to software bugs, computer viruses, internet worms, break-ins, phishing attacks, attempts to overload servers with denial-of-service, or other deficiencies are discovered inattacks and similar disruptions from unauthorized use of our internal accounting procedures, our stock price could decline significantly.

We are exposed to potential risks from legislation requiring companies to evaluate internal controls under Section 404(a)and third-party computer systems, any of the Sarbanes-Oxley Act of 2002. As a smaller reporting company and emerging growth company, we will not be required to provide a report on the effectiveness of its internal controls over financial reporting until our second annual report, and we will be exempt from auditor attestation requirements concerning any such report so long as we are an emerging growth company or a smaller reporting company. We have not yet evaluated whether our internal control procedures are effective and therefore there is a greater likelihood of material weaknesses in our internal controls, which could lead to misstatementssystem interruptions, delays, or omissionsshutdowns, causing loss of critical data or unauthorized access to personal data. Computer malware, viruses, and computer hacking, and phishing attacks have become more prevalent in our reportedindustry, have occurred on our systems in the past, and may occur on our systems in the future. Though it is difficult to determine what, if any, harm may directly result from any specific interruption or attack, any failure to maintain performance, reliability, security, and availability of our products and technical infrastructure to the satisfaction of our users may harm our reputation and our ability to retain existing users and attract new users. The systems and processes that we have designed to protect our data and our users’ data, to prevent data loss, to disable undesirable accounts and activities on our platform, and to prevent or detect security breaches, may not prevent security breaches, and we may incur significant costs in protecting against or remediating cyber-attacks.

In addition, if an actual or perceived breach of security occurs to our systems or a third party’s systems, we may face regulatory or civil liability and public perception of our security measures could be diminished, either of which would negatively affect our ability to attract and retain users, which in turn would harm our efforts to attract and retain advertisers, content providers, and other business partners. We also would be required to expend significant resources to mitigate the breach of security and to address matters related to any such breach.

Any failure, or perceived failure, by us to maintain the security of data relating to our users, to comply with our posted privacy policy, laws and regulations, rules of self-regulatory organizations, industry standards, and contractual provisions to which we may be bound, could result in the loss of confidence in us, or result in actions against us by governmental entities, data protection authorities, or others, all of which could result in litigation and financial statements as compared to issuers that have conducted such evaluations.

If material weaknesseslosses, and deficiencies are detected, it could potentially cause investorsus to lose confidence inusers, advertisers, and revenues. Any of these events could have a material adverse effect on our companybusiness, operating results, and result in a decline infinancial condition and could cause our stock price to drop significantly. 

Our Service and consequently software are highly technical and may contain undetected software bugs or vulnerabilities, which could manifest in ways that could seriously harm our reputation and our business.

Many of the products we offer are technical and complex. Our Services and products like the Loop Player or any other product we may introduce in the future, may contain undetected software bugs, hardware errors, and other vulnerabilities. These bugs and errors can manifest in any number of ways in our products, including through diminished performance, security vulnerabilities, malfunctions, or even permanently disabled products. We plant to update our products from time to time, and as a result some errors in our products may be discovered only after a product has been used by users and may in some cases be detected only under certain circumstances or after extended use. Additionally, many of our products are available on multiple operating systems and/or multiple devices offered by different manufacturers, and changes or updates to such operating systems or devices may cause errors or functionality problems in our products, including rendering our products inoperable by some users. Any errors, bugs, or other vulnerabilities discovered in our code or backend after release could damage our reputation, drive away users, allow third parties to manipulate or exploit our software (including, for example, providing mobile device users a means to suppress advertisements without payment and gain access to features only available to the Ad-Supported Service on tablets and desktop computers), lower revenue, and expose us to claims for damages, any of which could seriously harm our business. Additionally, errors, bugs, or other vulnerabilities may—either directly or if exploited by third parties—affect our financial condition.ability to make accurate royalty payments.

We could also face claims for product liability, tort, or breach of warranty. Defending a lawsuit, regardless of its merit, is costly and may divert management’s attention and seriously harm our reputation and our business. In addition, if we fail to achieve and maintainour liability insurance coverage proves inadequate or future coverage is unavailable on acceptable terms or at all, our business could be seriously harmed.

Interruptions, delays, or discontinuations in service arising from our own systems or from third parties could impair the adequacydelivery of our internal controls,Service and harm our business.

We rely on systems housed in our own facilities and upon third parties, including bandwidth providers and third-party “cloud” data storage services, to enable our users to receive our content in a dependable, timely, and efficient manner. We have experienced, and may in the future experience, periodic service interruptions and delays involving our own systems and those of third parties that we work with. Both our own facilities and those of third parties are vulnerable to damage or interruption from earthquakes, floods, fires, power loss, telecommunications failures, and similar events. They are also subject to break-ins, sabotage, intentional acts of vandalism, the failure of physical, administrative, technical, and cyber security measures, terrorist acts, natural disasters, human error, the financial insolvency of third parties that we work with, and other unanticipated problems or events. The occurrence of any of these events could result in interruptions in our Service and unauthorized access to, or alteration of, the content and data contained on our systems that these third parties store and deliver on our behalf.

Any disruption in the services provided by these third parties could materially adversely impact our business reputation, customer relations, and operating results. Upon expiration or termination of any of our agreements with third parties, we may not be able to ensurereplace the services provided to us in a timely manner or on terms and conditions, including service levels and cost, that are favorable to us, and a transition from one third party to another could subject us to operational delays and inefficiencies until the transition is complete.

Assertions by third parties of infringement or other violation by us of their intellectual property rights could harm our business, operating results, and financial condition.

Third parties may in the future assert, that we have infringed, misappropriated, or otherwise violated their copyrights, patents, trademarks, and other intellectual property rights, and as we face increasing competition, the possibility of intellectual property rights claims against us grows. Our ability to provide our Service is dependent upon our ability to license intellectual property rights to audio content, including video music recordings, any musical compositions embodied therein, as well as other visual content and any other media assets that content providers, artists, and/or labels can concludeadd or provide. Various laws and regulations govern the copyright and other intellectual property rights associated with audio and visual content, including video music and sound recordings and musical compositions. Existing laws and regulations are evolving and subject to different interpretations, and various legislative or regulatory bodies may expand current or enact new laws or regulations. Although we seek to comply with the statutory, regulatory, and judicial frameworks by, for example, entering into license agreements, we may unknowingly be infringing or violating any third-party intellectual property rights, or may do so in the future. Moreover, while we may often be able to seek indemnities from our licensors with respect to infringement claims that may relate to the content, they provide to us, such indemnities may not be sufficient to cover the associated liability if the licensor at issue does not have adequate financial resources.

In addition, music, internet, technology, and media companies are frequently subject to litigation based on allegations of infringement, misappropriation, or other violations of intellectual property rights. Many companies in these industries have substantially larger patent and intellectual property portfolios than we do, which could make us a target for litigation. We may not be able to assert counterclaims against parties that sue us for patent, or other intellectual property infringement. In addition, various “non-practicing entities” that own patents and other intellectual property rights often attempt to aggressively assert claims in order to extract value from technology companies. Further, from time to time we may introduce new products and services, including in territories where we currently do not have an offering, which could increase our exposure to patent and other intellectual property claims from competitors and non-practicing entities. It is difficult to predict whether assertions of third-party intellectual property rights or any infringement or misappropriation claims arising from such assertions will substantially harm our business, operating results, and financial condition. If we are forced to defend against any infringement or misappropriation claims, whether they are with or without merit, are settled out of court, or are determined in our favor, we may be required to expend significant time and financial resources on the defense of such claims, and such claims also would divert management time and attention from our business operations. Furthermore, an adverse outcome of a dispute may require us to pay significant damages, which may be even greater if we are found to have willfully infringed upon a party’s intellectual property; cease exploiting copyrighted content that we have previously had the ability to exploit; cease using solutions that are alleged to infringe or misappropriate the intellectual property of others; expend additional development resources to redesign our solutions; enter into potentially unfavorable royalty or license agreements in order to obtain the right to use necessary technologies, content, or materials; indemnify our partners and other third parties; and/or take other actions that may have material effects on our business, operating results, and financial condition.

Failure to protect our intellectual property could substantially harm our business, operating results, and financial condition.

The success of our business depends on our ability to protect and enforce our patents, trade secrets, trademarks, copyrights, and all of our other intellectual property rights, including our intellectual property rights underlying our Service. We attempt to protect our intellectual property under patent, trade secret, trademark, and copyright law through a combination of intellectual property registration, employee, third-party assignment and nondisclosure agreements, other contractual restrictions, technological measures, and other methods. These afford only limited protection, and we are still continuing to develop our processes for securing our intellectual property rights. Despite our efforts to protect our intellectual property rights, unauthorized parties may attempt to copy aspects of our product and brand features or obtain and use our trade secrets and other confidential information. Moreover, policing our intellectual property rights is difficult and time-consuming. We cannot assure you that we would have adequate resources to protect and police our intellectual property rights, and we cannot assure you that the steps we take to do so will always be effective.

We have filed, and may in the future file, patent applications on certain of our innovations. It is possible, however, that these innovations may not be patentable. In addition, given the cost, effort, risks, and downside of obtaining patent protection, including the requirement to ultimately disclose the invention to the public, we may choose not to seek patent protection for some innovations. Furthermore, our patent applications may not issue as granted patents, the scope of the protection gained may be insufficient, or an issued patent may be deemed invalid or unenforceable. Any of our present or future patents or other intellectual property rights may lapse or be invalidated, circumvented, challenged, or abandoned. Our intellectual property rights also may not provide competitive advantages to us. Our ability to assert our intellectual property rights against potential competitors or to settle current or future disputes could be limited by our relationships with third parties, and any of our pending or future patent applications may not have the scope of coverage originally sought. Our intellectual property rights may not be enforced in jurisdictions where competition may be intense or where legal protection may be weak. We could lose both the ability to assert our intellectual property rights against, or to license our technology to, others and the ability to collect royalties or other payments.

We currently own the www.loop.tv internet domain name and various other related domain names. Internet regulatory bodies generally regulate domain names. If we lose the ability to use a domain name in a particular country, we may be forced either to incur significant additional expenses to market our Service within that country or, in extreme cases, to elect not to offer our Service in that country. Either result could harm our business, operating results, and financial condition. The regulation of domain names in the United States and in foreign countries is subject to change. Regulatory bodies could establish additional top-level domains, appoint additional domain name registrars, or modify the requirements for holding domain names. As a result, we may not be able to acquire or maintain the domain names that utilize our brand names in the United States or other countries in which we may conduct business in the future.

Litigation or proceedings before governmental authorities and administrative bodies may be necessary in the future to enforce our intellectual property rights, to protect our patent rights, trademarks, trade secrets, and domain names and to determine the validity and scope of the proprietary rights of others. Our efforts to enforce or protect our proprietary rights may be ineffective and could result in substantial costs and diversion of resources and management time, each of which could substantially harm our operating results. Additionally, changes in law may be implemented, or changes in interpretation of such laws may occur, that may affect our ability to protect and enforce our patents and other intellectual property.

User metrics and other estimates could be subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may seriously harm and negatively affect our reputation and our business.

As our business grows, we expect to develop and regularly review key metrics related to the operation of our business, including metrics related to our active users, premium revenue per user, subscriber numbers, OOH venue locations, and other metrics to evaluate growth trends, measure our performance, and make strategic decisions. These metrics will be calculated using internal company data and will not be validated by an independent third party. While these numbers are expected to be based on reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring how our Service is used across large populations of users and customers. The calculations of our active users may not reflect the actual number of people using our Service (if one user has more than one account or if one account is used by multiple users). Errors or inaccuracies in our metrics or data could result in incorrect business decisions and inefficiencies, including expending resources to implement unnecessary business measures or failing to take required actions to attract enough users to satisfy our growth strategies.

In addition, advertisers generally rely on third-party measurement services to calculate metrics related to our advertising business, and these third-party measurement services may not reflect our true audience. Some of our demographic data also may be incomplete or inaccurate because users self-report their names and dates of birth or because we receive them from other third parties. Consequently, the personal data we have may differ from our users’ actual names and ages. If advertisers, partners, or investors do not perceive our user, geographic, or other demographic metrics to be accurate representations of our user base, or if we discover material inaccuracies in our user, geographic, or other demographic metrics, our reputation may be materially harmed.

We are at risk of artificial manipulation of stream counts and failure to effectively manage and remediate such fraudulent streams could have an adverse impact on our business, operating results, and financial condition. Fraudulent streams and potentially associated fraudulent user accounts or artists may cause us to overstate key performance indicators, which once discovered, corrected, and disclosed, could undermine investor confidence in the integrity of our key performance indicators and could cause our stock price to drop significantly.

As we further develop our D2C Service, we may in the future be impacted by attempts by third parties to artificially manipulate stream counts. Such attempts may, for example, be designed to generate revenue for rights holders or to influence placement of content on Loop Media generated Playlists or industry music video charts. These potentially fraudulent streams may involve creating non-bona fide user accounts or artists or using compromised passwords to access legitimate user accounts. We seek to detect fraudulent streams and aim to remove fake user accounts created for the above purposes and filter them out from our metrics on an ongoing basis, as well as to require users to reset passwords that we suspect have been compromised; however, we may not be successful in detecting, removing, and addressing all fraudulent streams and any related user accounts. If in the future we fail to successfully detect, remove, and address fraudulent streams and associated user accounts, it may result in the manipulation of our data, including the key performance indicators, which underlie, among other things, our contractual obligations with rights holders and advertisers (which could expose us to the risk of litigation), as well as harm our relationships with rights holders and advertisers. In addition, once we detect, correct, and disclose fraudulent streams and associated user accounts, this may result in the removal of certain user accounts and/or a reduction in account activity, which may affect key performance indicators and undermine investor confidence in the integrity of our key performance indicators. These could have a material adverse impact on our business, operating results, and financial condition.

We are at risk of attempts to manipulate or exploit our software for the purpose of gaining or providing unauthorized access to certain features of our Service, and failure to effectively prevent and remediate such attempts could have an adverse impact on our business, operating results, and financial condition.

As our business develops, we may be impacted by attempts by third parties to manipulate or exploit our software for the purpose of gaining or providing unauthorized access to certain features of our Service. Third parties may seek to provide mobile device users a means to suppress advertisements without payment and gain access to features only available to the Ad-Supported Service on tablets and desktop computers. If we fail to successfully detect and address such issues, it may have artificial effects on our key performance indicators, which underlie, among other things, our contractual obligations with rights holders and advertisers (which could expose us to the risk of litigation), as well as harm our relationship with rights holders and advertisers. The discovery or development of any new method to gain unauthorized access to certain features of our Service, such as through the exploitation of software vulnerabilities, and the sharing of any such method among third parties, may increase the level of unauthorized access (and the attendant negative financial impact described above). We cannot assure you we will be successful in finding ways to effectively address unauthorized access achieved through any such method. Additionally, compared to our Ad-Supported Users, individuals using unauthorized versions of our application may be less likely to convert to Premium Subscribers. Moreover, once we detect and disable such unauthorized access, this may result in the removal of certain user accounts and/or a reduction in account activity, which may affect our key performance indicators and could undermine investor confidence in the integrity of our key performance indicators. These could have a material adverse impact on our business, operating results, and financial condition.

Various regulations as well as self-regulation related to privacy and data security concerns pose the threat of lawsuits, regulatory fines and other liability, require us to expend significant resources, and may harm our business, operating results, and financial condition.

As we collect and utilize personal data about our customers and users as they interact with our Service, we are subject to new and existing laws and regulations that govern our use of user data. We are likely to be required to expend significant capital to ensure ongoing compliance with these laws and regulations. Claims or allegations that we have violated laws and regulations relating to privacy and data security could result in negative publicity and a loss of confidence in us by our users and our partners. We may be required to make significant expenditure to resolve these issues and we could be subject to civil liability and/or fines or other penalties, including by government and data protection authorities.

Existing privacy-related laws and regulations in the United States, and in other countries are evolving and are subject to potentially differing interpretations, and various U.S. federal and state or other international legislative and regulatory bodies may expand or enact laws regarding privacy and data security-related matters. Laws coming into effect in various states, adoption of a comprehensive federal data privacy law, and new legislation in international jurisdictions may continue to change the data protection landscape globally and could result in us expending considerable resources to meet these requirements.

We may find it necessary or desirable to join self-regulatory bodies or other privacy-related organizations that require compliance with their rules pertaining to privacy and data security. We also may be bound by contractual obligations that limit our ability to collect, use, disclose, share, and leverage user data and to derive economic value from it. New laws, amendments to, or reinterpretations of existing laws, rules of self-regulatory bodies, industry standards, and contractual obligations, as well as changes in our users’ expectations and demands regarding privacy and data security, may limit our ability to collect, use, and disclose, and to leverage and derive economic value from user data. Restrictions on our ability to collect, access and harness user data, or to use or disclose user data, may require us to expend significant resources to adapt to these changes, and would in turn limit our ability to stream personalized content to our users and offer advertising and promotional opportunities to users on the Service.

We have incurred, and will continue to incur, expenses to comply with privacy and security standards and protocols imposed by law, regulation, self-regulatory bodies, industry standards, and contractual obligations. Any failure to comply with privacy laws could result in litigation, regulatory or governmental investigations, enforcement action requiring us to change the way we use personal data, restrictions on how we use personal data, or significant regulatory fines. In addition to statutory enforcement, a data breach could lead to compensation claims by affected individuals (including consumer advocacy groups), negative publicity, and a potential loss of business as a result of customers losing trust in us. Such failures could have a material adverse effect on our financial condition and operations.

If we fail to implement and maintain effective internal controlscontrol over financial reporting, our ability to accurately and timely report our financial results could be adversely affected.

We are required to maintain internal control over financial reporting and to report any material weaknesses in accordance withthose controls. We previously identified material weaknesses in our internal control over financial reporting that related to, among other things, accounting for rights holder liabilities. During 2020, we took a number of actions designed to remediate certain of these material weaknesses, including the hiring of additional accounting and finance team members and the implementation of new controls, processes, and technologies. Based on the testing of operating effectiveness of these controls completed to date, as of December 31, 2020, we have remediated some of our identified material weaknesses, but other previously identified material weaknesses remain.

If we continue to have material weaknesses in our internal control over financial reporting or fail to meet our obligations as a public company, including the requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), we may be unable to accurately report our financial results, or report them within the timeframes required by law or stock exchange regulations, and we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common stock to decline. Under Section 404 of the Sarbanes-Oxley Act. Moreover,Act, we are required to evaluate and determine the effectiveness of our internal control over financial reporting and provide a management report as to internal control over financial reporting. Failure to maintain effective internal controls, particularly those related to revenue recognition, are necessary forcontrol over financial reporting also could potentially subject us to producesanctions or investigations by the SEC, or other regulatory authorities, or stockholder lawsuits, which could require additional financial and management resources. We may be unable to fully remediate previously identified material weaknesses, or we may identify additional material weaknesses in the future, which could materially adversely affect our business, operating results, and financial condition.

We rely on advertising revenue to monetize our Service, and any failure to convince advertisers of the benefits of advertising on our Service in the future could harm our business, operating results, and financial condition.

Our ability to attract and retain advertisers, and ultimately to generate advertising revenue, depends on several factors, including:

We may not succeed in capturing a greater share of our advertisers’ core marketing budgets, particularly if we are unable to achieve the scale, reach, products, and market penetration necessary to demonstrate the effectiveness of our advertising solutions, or if our advertising model proves ineffective or not competitive when compared to other alternatives and platforms through which advertisers choose to invest their budgets.

Failure to grow the Ad-Supported customer and user base and to effectively demonstrate the value of our Ad-Supported Service and other similar offerings on the Service to advertisers could result in loss of, or reduced spending by, existing or potential future advertisers, which would materially harm our business, operating results, and financial condition.

Selling advertisements requires that we demonstrate to advertisers that our offerings on the Service are effective. For example, we need to show that our Ad-Supported Service has substantial reach and engagement by relevant demographic audiences. Some of our demographic data may be incomplete or inaccurate. For example, because Ad-Supported users self-report their personal data, which may include their genders and dates of birth, the personal data we have may differ from our Ad-Supported users’ actual genders and ages. If our Ad-Supported users provide us with incorrect or incomplete information regarding their personal data, such as genders, age, or other attributes we use to target advertisements to users, or the data are otherwise not available to us, then we may fail to target the correct demographic with our advertising. Advertisers often rely on third parties to quantify the reach and effectiveness of our ad products. These third-party measurement services may not reflect our true audience or the performance of our ad products, and their underlying methodologies are subject to change at any time. In addition, the methodologies we apply to measure the key performance indicators that we use to monitor and manage our business may differ from the methodologies used by third-party measurement service providers, who may not integrate effectively with our Ad-Supported Service. Measurement technologies for mobile devices may be even less reliable financial reportsin quantifying the reach and are important to helping prevent financial fraud.usage of our Ad-Supported Service, and it is not clear whether such technologies will integrate with our systems or uniformly and comprehensively reflect the reach, usage, or overall audience composition of our Ad-Supported Service. If such third-party measurement providers report lower metrics than we do, there is wide variance among reported metrics, or we cannot provide reliable financial reports or prevent fraud,adequately integrate with such services that advertisers require, our ability to convince advertisers of the benefits of our Ad-Supported Service could be adversely affected.

We depend on highly skilled key personnel to operate our business, and operating resultsif we are unable to attract, retain, and motivate qualified personnel, our ability to develop and successfully grow our business could be harmed, investors could lose confidenceharmed.

We believe that our future success is highly dependent on the talents and contributions of our senior management, including Jon Niermann, our Chief Executive Officer, members of our executive team, and other key employees, such as the key technology, product, content, engineering, finance, research and development, marketing, and sales personnel. Many of our employees have unique skills required for and/or historical knowledge of our business. Our future success depends on our continuing ability to attract, develop, motivate, and retain highly qualified and skilled employees. All of our employees, including our senior management, are free to terminate their employment relationship with us at any time, and their knowledge of our business and industry may be difficult to replace. Qualified individuals are in our reported financial information,high demand, particularly in the digital media industry, and we may incur significant costs to attract and retain them. We use equity awards to attract talented employees. If the trading pricevalue or liquidity of our common stock could drop significantly. In addition, we cannot be certaindeclines significantly and remains depressed, that additional material weaknesses or significant deficiencies in our internal controls will not be discovered in the future.

Risks Associated with Managementmay prevent us from recruiting and Control Persons

retaining qualified employees. If we failare unable to attract and retain qualifiedour senior executivemanagement and key technical personnel, our business willemployees, we may not be able to expand.

We are dependent on the continued availability of Duan Fuachieve our strategic objectives, and Zixiao Chen, and the availability of new employees to implement our business plans. The market for skilled employees is highly competitive, especially for employees in the service industry. Althoughcould be harmed. In addition, we expectbelieve that our compensation programs will be intended to attractkey executives have developed highly successful and retain the employees required for us to be successful, there can be no assuranceeffective working relationships. We cannot assure you that we will be able to retain the services of allany members of our key employees or a sufficient number to execute our plans, nor can there be any assurance we will be able to continue to attract new employees as required.

Our personnel may voluntarily terminate their relationship with us at any time, and competition for qualified personnel is intense. The process of locating additional personnel with the combination of skills and attributes required to carry out our strategy could be lengthy, costly and disruptive.

If we lose the services of key personnel, or fail to replace the services of key personnel who depart, we could experience a severe negative effect on our financial results and stock price. In addition, there is intense competition for highly qualified bilingual and “people friendly” personnel in the locations where we principally operate. The loss of the services of any key personnel, marketingsenior management or other personnelkey employees. If one or our failure to attract, integrate, motivate and retain additional key employees could have a material adverse effect on our business, operating and financial results and stock price.

Mr. Fu owns a significant percentagemore of the voting power of our stock and will be able to exercise significant influence over the composition of our Board of Directors, matters subject to stockholder approval and our operations.

As of the date of this filing, Duan Fu owns 53,000,000 shares of Interlink Plus common stock representing 78.66% of Interlink Plus. Additionally, Duan Fu owns 1,700,000 shares of Class “A” Convertible Preferred Stock which votes 100 shares of Common Stock each which decreases Duan Fu’s control to 66.10% control over all Common Stock voting matters. As a result of Duan Fu’s equity ownership interest, voting power and the contractual rights described above, he currently is in a position to influence, subject to our organizational documents and Nevada law, the composition of Interlink’s Board of Directors and the outcome of corporate actions requiring stockholder approval, such as mergers, business combinations and dispositions of assets, among other corporate transactions. In addition, this concentration of voting power could discourage others from initiating a potential merger, takeover or other change of control transaction that may otherwise be beneficial to Interlink, which could adversely affect the market price of Interlink’s securities.

Because our current sole officer and director devotes a limited amount of time to our company, he may not be able or willing to devote a sufficient amount of time to our business operations, causing our business to fail.

Duan Fu, our sole officer and director, currently devotes approximately 15-20 hours per week providing management services to us. While he presently possesses adequate time to attend to our interest, it is possible that the demands on him from other obligations could increase, with the result that he would no longer be able to devote sufficient time to the management of our business. The loss of Mr. Fu to our company could negatively impact our business development.

Our sole officer and director does not have any prior experience managing a public company.

Our sole executive officer and director does not have any experience managing a public company. Consequently,these individuals leave, we may not be able to runfully integrate new executives or replicate the current dynamic, and working relationships that have developed among our public company successfully. senior management and other key personnel, and our operations could suffer.

We have acquired and invested in, and may continue to acquire or invest in, other companies or technologies, which could divert management’s attention and otherwise disrupt our operations and harm our operating results. We may fail to acquire or invest in companies whose market power or technology could be important to the future success of our business.

We have recently acquired assets from Spkr, Inc. (“Spkr”) and invested in EON Media and may in the future seek to acquire or invest in, other companies or technologies, including additional investments in EON Media, that we believe could complement or expand our Service or enhance our capabilities or content offerings, or otherwise offer growth opportunities. Pursuit of future potential acquisitions or investments may divert the attention of management and cause us to incur various expenses in identifying, investigating, and pursuing suitable opportunities, whether or not they are consummated. In addition, we have limited experience acquiring and integrating other businesses. We may be unsuccessful in integrating our recently acquired businesses or any additional business we may acquire in the future, and we may fail to acquire companies whose market power or technology could be important to the future success of our business.

We also may not achieve the anticipated benefits from any acquisition or investment due to a number of factors, including:

If we acquire or invest in other companies, these acquisitions or investments may reduce our operating margins for the foreseeable future. In addition, a significant portion of the purchase price of companies we acquire may be allocated to acquired goodwill, which must be assessed for impairment at least annually. In the future, if our acquisitions or investments do not yield expected returns, we may be required to take charges to our operating results based on this impairment assessment process. Acquisitions or investments could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our operating results. In addition, if a business we acquire or invest in fails to meet our expectations, our business, operating results, and financial condition may suffer.

Our executive’s officer’soperating results may fluctuate, which makes our results difficult to predict.

As our business further develops, our revenue and director’s lackoperating results could vary significantly from quarter to quarter and year to year because of experiencea variety of managingfactors, many of which are outside our control. As a public company could cause youresult, comparing our operating results on a period-to-period basis may not be meaningful. Factors that may contribute to lose some or allthe variability of your investment.our quarterly and annual results include:

8

Risks Related to Owning Our Legal StatusCommon Stock.

The trading price of our common stock has been and will likely continue to be volatile.

The trading price of our common stock has been and is likely to continue to be volatile. In 2020, the trading price of our common stock ranged from $0.495 to $3.45. The market price of our common stock may fluctuate or decline significantly in response to numerous factors, many of which are beyond our control, including:

In addition, the stock market in general, particularly the OTC Pink Open Market operated by OTC Markets Group, Inc. (the “Pink Open Market”) and the market for small media companies, have experienced extreme price and volume fluctuations that often have been unrelated or disproportionate to the operating performance of those companies. Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company’s securities. Such litigation, if instituted against us, could result in very substantial costs, divert our management’s attention and resources and harm our business, operating results, and financial condition.

Because of their significant ownership of our common stock, our founders and other large investors have substantial control over our business, and their interests may differ from our interests or those of our other stockholders. Sales of substantial amounts of our common stock in the public markets by our founders or other stockholders, or the perception that such sales might occur, could reduce the price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us.

As an “emerging growth company” underof December 31, 2020, our founders and largest investor, beneficially owned or controlled, directly or indirectly, common stock representing 40% of the JOBS Act, we are permitted to rely on exemptions from certain disclosure requirements.

We qualify as an “emerging growth company” under the JOBS Act.combined voting power of all our outstanding voting securities. As a result we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

·

have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

·

comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);

·

submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and

·

disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive’s compensation to median employee compensation.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such newownership or revised accounting standards.

We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market valuecontrol of our ordinary shares that is held by non-affiliates exceeds $700 million asvoting securities, if our founders and/or significant stockholders act together, they will have control over the outcome of substantially all matters submitted to our stockholders for approval, including the last business dayelection of our most recently completed second fiscal quarterdirectors. This may delay or (iii)prevent an acquisition or cause the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

Even if we no longer qualify for the exemptions for an emerging growth company, we may still be, in certain circumstances, subject to scaled disclosure requirements as a smaller reporting company. For example, smaller reporting companies, like emerging growth companies, are not required to provide a compensation discussion and analysis under Item 402(b)trading price of Regulation S-K or auditor attestation of internal controls over financial reporting.

Until such time, however, we cannot predict if investors will find our common stock less attractive because weto decline. Our founders may relyhave interests different from yours. Therefore, the concentration of voting power among our founders may have an adverse effect on these exemptions. If some investors findthe price of our common stock.

Sales of substantial amounts of our common stock less attractive asin the public market by our founders, affiliates, or non-affiliates, or the perception that such sales could occur, could adversely affect the trading price of our common stock, and may make it more difficult for you to sell your common stock at a result, there may be a less activetime and price that you deem appropriate.

If securities or industry analysts publish inaccurate or unfavorable research about our business or cease publishing research about our business, our share price and trading volume could decline.

The trading market for our common stock will be influenced by the research and reports that securities or industry analysts publish about our stock priceCompany, if any do so in the future. If one or more of the analysts who may be more volatile.

Risks Related to Our Securities andcover us in the Over the Counter Market

Trading on the Pink Sheets may be volatile and sporadic, which could depress the market price offuture downgrade our common stock and make it difficultor publish inaccurate or unfavorable research about our Company, our common stock price would likely decline. Further, if one or more of these analysts, once they cover us, cease coverage of our Company or fail to publish reports on us regularly, demand for our stockholderscommon stock could decrease, which might cause our common stock price and trading volume to resell their shares.decline.

The requirements of being a public company may strain our resources and divert management’s attention.

We are a fully reporting issuer with the Securities and Exchange Commission. Our common stock is quoted on the “Pink Sheets” as provided by OTC Markets under the ticker symbol “ITRK” (the “Pink Sheets”). Trading in stock quoted on the Pink Sheets, or any other over the counter venues, is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with our operations or business prospects. This volatility could depress the market price of our common stock for reasons unrelated to operating performance. Moreover, the Pink Sheets is not a stock exchange, and trading of securities on the Pink Sheets is often more sporadic than the trading of securities listed on a quotation system like NASDAQ or a stock exchange like Amex. Accordingly, shareholders may have difficulty reselling any of their shares.

Our stock is a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations and FINRA’s sales practice requirements, which may limit a stockholder’s ability to buy and sell our stock.

Our stock is a penny stock. The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practicereporting requirements on broker-dealers who sell to persons other than established customers and “accredited investors”. The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in, and limit the marketability of, our common stock.

In addition to the “penny stock” rules promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, the Financial Industry Regulatory Authority believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The Financial Industry Regulatory Authority’ requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock.

Rule 144 sales in the future may have a depressive effect on our stock price as an increase in supply of shares for sale, with no corresponding increase in demand will cause prices to fall.

All of the outstanding shares of common stock held by the present officers, directors, and affiliate stockholders are “restricted securities” within the meaning of Rule 144 under the Securities Act, of 1933, as amended. As restricted shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Act and as required under applicable state securities laws. Rule 144 provides in essence that a person who is an affiliate or officer or director who has held restricted securities for six months may, under certain conditions, sell every three months, in brokerage transactions, a number of shares that does not exceed the greater of 1.0% of a company’s outstanding common stock. There is no limit on the amount of restricted securities that may be sold by a non-affiliate after the owner has held the restricted securities for a period of six months if the company is a current reporting company under the 1934 Act. A sale under Rule 144 or under any other exemption from the Act, if available, or pursuant to subsequent registration of shares of common stock of present stockholders, may have a depressive effect upon the price of the common stock in any market that may develop.

FINRA sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

In addition to the “penny stock” rules described above, the Financial Industry Regulatory Authority (FINRA) has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act, could have a material adverse effectand other applicable securities rules and regulations. Compliance with these rules and regulations incurs substantial legal and financial compliance costs, makes some activities more difficult, time-consuming, or costly, and places increased demand on our systems and resources. The Exchange Act requires, among other things, that we file annual and current reports with respect to our business and operating results.

It may be time consuming, difficult and costly for us to develop and implement the additional internal controls, processes and reporting procedures required by the Sarbanes-Oxley Act. We may need to hire additional financial reporting, internal auditing and other finance staff in order to develop and implement appropriate additional internal controls, processes and reporting procedures.

If we fail to comply in a timely manner with the requirements of Section 404 of the The Sarbanes-Oxley Act regarding internal control over financial reporting or to remedy any material weaknesses in our internal controlsrequires, among other things, that we may identify, such failure could result in material misstatements in our financial statements, cause investors to lose confidence in our reported financial informationmaintain effective disclosure controls and have a negative effect on the trading price of our common stock.

Pursuant to Section 404 of the Sarbanes-Oxley Actprocedures and current SEC regulations, we are required to prepare assessments regarding internal controls over financial reporting and, furnish a report by our management on our internal control over financial reporting. We have begun the process of documenting and testing our internal control procedures in order to satisfy these requirements, which is likely to result in increased general and administrative expenses and may shift management time and attention from revenue-generating activities to compliance activities. While our management is expending significant resources in an effort to complete this important project, there can be no assurance that we will be able to achieve our objective on a timely basis. Failure to achieve andTo maintain an effective internal control environment or complete our Section 404 certifications could have a material adverse effect on our stock price.

In addition, in connection with our on-going assessment of the effectiveness of our internal control over financial reporting, we may discover “material weaknesses” in our internaldisclosure controls as defined in standards established by the Public Company Accounting Oversight Board, or the PCAOB. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The PCAOB defines “significant deficiency” as a deficiency that results in more than a remote likelihood that a misstatement of the financial statements that is more than inconsequential will not be prevented or detected.

In the event that a material weakness is identified, we will employ qualified personnel and adopt and implement policies and procedures to address any material weaknesses that we identify. However, the process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company. We cannot assure you that the measures we will take will remediate any material weaknesses that we may identify or that we will implement and maintain adequate controls over our financial process and reporting in the future.

Any failure to complete our assessment of our internal control over financial reporting, to remediate any material weaknesses that we may identify or to implement new or improved controls, or difficulties encountered in their implementation, could harm our operating results, cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements. Any such failure could also adversely affect the results of the periodic management evaluations of our internal controls and, in the case of a failure to remediate any material weaknesses that we may identify, would adversely affect the annual auditor attestation reports regarding the effectiveness of our internal control over financial reporting that meet this standard, significant resources and management oversight are required under Section 404 of the Sarbanes-Oxley Act. Inadequate internal controls could also cause investors to lose confidence in our reported financial information,required. As a result, management’s attention may be diverted from other business concerns, which could have a negative effect on the trading price ofharm our common stock.business and operating results.

We do not expect to pay cash dividends in the foreseeable future.

We have never declared or paid any cash dividends on our share capital. We currently intend to pay dividends.

Weretain any future earnings for working capital and general corporate purposes and do not anticipate paying cashexpect to pay dividends or other distributions on our common stock in the foreseeable future. WeAs a result, you may not have sufficient funds to legally pay dividends. Even if funds are legally available to pay dividends, we may nevertheless decide in our sole discretion not to pay dividends. The declaration, payment and amount of any future dividends will be made at the discretion of the board of directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors our board of directors may consider relevant. There is no assurance that we will pay any dividends in the future, and, if dividends are rapid, there is no assurance with respect to the amount of any such dividend.

Volatilityonly receive a return on your investment in our common sharestock if you sell some or all of your common stock after the trading price may subject us to securities litigation, thereby diverting our resources that may have a material effect on our profitability and results of operations.

As discussed in the preceding risk factors, the market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may in the future be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.

If we are unable to continue as a going concern, investors may face a complete loss of their investment.

The independent auditor’s report on our financial statements contains explanatory language that substantial doubt exists about our ability to continue as a going concern. The report states that we depend on the continued contributions of our executive officers to work effectively as a team, to execute our business strategy and to manage our business. The loss of key personnel, or their failure to work effectively, could have a material adverse effect on our business, financial condition, and results of operations. If we are unable to obtain sufficient financing in the near term or achieve profitability, then we would, in all likelihood, experience severe liquidity problems and may have to curtail our operations. If we curtail our operations, we may be placed into bankruptcy or undergo liquidation, the result of which will adversely affect the value of our common shares.stock increases. You may not receive a gain on your investment when you sell your common stock, and you may lose the entire amount of the investment.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Compliance with changing regulation

We are a smaller reporting company as defined by Rule 12b-2 of corporate governance and public disclosure will result in additional expenses and pose challenges for our management team.

Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Dodd-Frank Wall Street Reform and Consumer ProtectionExchange Act and are not required to provide the rules and regulations promulgated thereunder, the Sarbanes-Oxley Act and SEC regulations, have created uncertainty for public companies and significantly increased the costs and risks associated with accessing the U.S. public markets. Our management team will need to devote significant time and financial resources to comply with both existing and evolving standards for public companies, which will lead to increased general and administrative expenses and a diversion of management time and attention from revenue generating activities to compliance activities.information under this item.

Item

ITEM 2. PropertiesPROPERTIES

Our principal executive offices are located at 700 N. Central Avenue, Suite 430, Glendale, CA, and our telephone number is (213) 436-2100. We currently lease approximately 1,976 square feet of office space at this location. The lease term is 43 months from November 14, 2019 to May 31, 2023.

We also have an office located at 150 Nickerson Street, Suite 305, Seattle, WA 98109. We currently lease approximately 3,776 square feet of office space at this location. The lease term is 60 months from January 1, 2018 to December 31, 2022.

We believe that our leased facilities are adequate to meet our needs at this time. We do not currently own any real property or any office. All of our businesses is conducted virtually. Our principal executive office mailbox is located at 4952 S Rainbow Blvd, Suite 326, Las Vegas, NV 89118.property.

ItemITEM 3. Legal ProceedingsLEGAL PROCEEDINGS

We are currently not a party toinvolved in any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us orlitigation that we believe could have a material interest adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry, or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to us.the knowledge of the executive officers of our Company, threatened against or affecting our Company, or our common stock, in which we believe an adverse decision could have a material adverse effect.

ItemITEM 4. Mine Safety DisclosuresMINE SAFETY DISCLOSURES

Not applicable.

PART II

ItemITEM 5.   Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity SecuritiesMARKET FOR REGISTRANTS’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our common stock is quoted under the symbol “ITRK”“LPTV” on the OTCPinkPink Open Market operated by OTC Markets Group, Inc.

There is currently no active trading market for our securities. There is no assurance that a regular trading market will develop, or if developed, that it will be sustained. Therefore, a shareholder may be unable to resell his securities in our company.

The following table sets forth the range of high and low bid quotations for our common stock for each of the periods indicated as reported by the OTCPink.Pink Open Market. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

13

Penny Stock

The Securities Exchange Commission has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the Commission, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading;(b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of Securities' laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask  price;(d) contains a toll-free telephone number for inquiries on disciplinary actions;(e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and;(f) contains such other information and is in such form, including language, type, size and format, as the Commission shall require by rule or regulation.

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with; (a) bid and offer quotations for the penny stock;(b) the compensation of the broker-dealer and its salesperson in the transaction;(c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market value of each penny stock held in the customer's account.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock if it becomes subject to these penny stock rules. Therefore, because our Our common stock is subject to the penny stock rules, stockholders may have difficulty selling those securities.

Holders of Our Common Stock

As of September 24 2018, we had 67,373,008 sharesvery thinly traded and, thus, pricing of our common stock issued andon the Pink Open Market does not necessarily represent its fair market value. The information in the table below has been adjusted to give retroactive effect to the Reverse Split that we effected on June 8, 2020.

On April 14,  2021, the closing price of our common stock as quoted on Pink Open Market was $2.95.

Holders

As of April 14, 2021, we had 120,933,177 shares of common stock outstanding held by 35 shareholdersapproximately 212 stockholders of record, with others holding shares in street name.record.

Dividends

We have never declared or paid cash dividends on our common stockstock. We intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business and we do not anticipate paying any cash dividends in the foreseeable future. The paymentAny future determination related to dividend policy will be made at the discretion of cash dividends on our common stock will depend on earnings, financial condition and other business and economic factors at such time as the board of directors may consider relevant. If we do not pay cash dividends, our common stock may be less valuable because a return on your investment will only occur if its stock price appreciates.directors.

Securities Authorized for Issuance under Equity Compensation Plans

We have noInformation regarding our equity compensation plans.plans is contained in Item 12 under “Securities Authorized for Issuance Under Equity Compensation Plans” and Note 17 — Stock Options and Warrants to the Financial Statements.

UnregisteredRecent Sales of EquityUnregistered Securities

None.Beginning on October 1, 2020, and through December 31, 2020, we sold and issued an aggregate of 704,000 shares of our common stock to a total of three accredited investors at a price of $1.25 per share for an aggregate purchase price of $780,000. We also received proceeds of $350,000 for additional sales of our common stock under the same offering to four more accredited investors but the stock was not issued until 2021. The offers, sales and issuances of such common stock were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act as transactions by an issuer not involving a public offering.

On December 1, 2020, the Company offered in a private placement, the aggregate offering amount of up to $3,000,000 of Senior Secured Promissory Debentures, with a minimum subscription amount of $250,000 and common stock warrants with an aggregate exercise price of $750,000 and aggregate exercisable warrant shares of 272,727 shares. The only Senior Secured Promissory Note entered under this offering in 2020 was to a related party in the amount of $750,000. This note accrues cash interest at 4% per annum and payment in kind interest at 6% payable in the Company’s common stock, determined on a 360-day basis. Cash interest is payable in advance on the issue date to November 30, 2021, then six months in arrears on June 1, 2022, then six months in arrears on December 1, 2022.

Item

ITEM 6. Selected Financial DataSELECTED FINANCIAL DATA

AWe are a smaller reporting company isas defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required byunder this Item.item.

Item ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking StatementsSTATEMENT ON FORWARD-LOOKING INFORMATION

CertainThis Annual Report contains certain forward-looking statements. All statements other than purelystatements of historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based,fact are “forward-looking statements” within the meaningfor purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the Private Securities Litigation Reform Actplans, strategies, and objectives of 1995, Section 27Amanagement for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the Securities Act of 1933foregoing. Such forward-looking statements are subject to inherent risks and Section 21E ofuncertainties, and actual results could differ materially from those anticipated by the Securities Exchange Act of 1934. forward-looking statements.

These forward-looking statements generally are identified byinvolve significant risks and uncertainties, including, but not limited to, the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,”following: competition, promotional costs, and similar expressions. We intendrisk of declining revenues. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements. The following discusses our financial condition and results of operations based upon our financial statements which have been prepared in conformity with accounting principles generally accepted in the United States of America. It should be read in conjunction with our financial statements and the notes thereto included elsewhere herein.

The following discussion and analysis provides information which our management believes to be covered byrelevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read together with our financial statements and the safe-harbor provisionsnotes to the financial statements, which are included in this report.

Overview

Loop Media, Inc. (f/k/a Interlink Plus, Inc.) (the “Company”) is a Nevada corporation. The Company was incorporated under the laws of the State of Nevada on May 11, 2015. On February 5, 2020, the Company and the Company’s wholly owned subsidiary, Loop Media Acquisition, Inc. (“Merger Sub”), a Delaware corporation, closed the Agreement and Plan of Merger (the “Merger Agreement”) with Loop Media, Inc. (“Loop”), a Delaware corporation. Pursuant to the Merger Agreement, Merger Sub merged with and into Loop with Loop as surviving entity and becoming a wholly-owned subsidiary of the Company (the “Merger”).

Pursuant to the Merger Agreement, the Company acquired 100% of the outstanding shares of Loop in exchange for forward-looking152,823,970 shares (pre-stock split; the post stock split number would be 101,882,647 shares) of the Company’s common stock at an exchange ratio of 1:1. Loop was incorporated on May 18, 2016, under the laws of the State of Delaware. As a result of such acquisition, the Company’s operations now are focused on premium short-form video for businesses and consumers.

In connection with the Merger, on February 6, 2020, the Company entered into a Purchase Agreement (the “Asset Purchase Agreement”) with Zixiao Chen (“Buyer”) for the purchase of assets relating to the Company’s two major business segments: travel agency assistance services and convention services (together, the “Business”). In consideration for the assets of the Business, Buyer transferred to the Company 2,000,000 shares of the Company’s common stock and agreed to assume and discharge any and all liabilities relating to the Business accruing up to the effective time of the Asset Purchase Agreement. The shares will be retired and restored to the status of authorized and unissued shares.

For accounting purposes, Loop was the surviving entity. The transaction was accounted for as a recapitalization of Loop pursuant to which Loop was treated as the accounting acquirer, surviving and continuing entity although the Company is the legal acquirer. The Company did not recognize goodwill or any intangible assets in connection with the Merger. Accordingly, the Company’s historical financial statements containedare those of Loop and its wholly-owned subsidiary, ScreenPlay, immediately following the consummation of this reverse merger transaction.

On June 8, 2020, a 1 for 1.5 reverse stock split of the Company’s common stock became effective. All share and per share information in the Private Securities Litigation Reform Actaccompanying consolidated financial statements and footnotes has been retroactively adjusted for the effects of 1995,the reverse split for all periods presented. 

For the year ended December 31, 2020, substantially all our revenues were derived from the historical business of ScreenPlay, which relies on a Subscription service-based model using older and aremore expensive A/V technology. Our revenues for 2020 did not contain any significant contribution from any Ad-Supported Services or the provision of the Loop Player to OOH venues or our Loop App to retail consumer end users.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Recent Developments

Impact of COVID-19

The spread of COVID-19 around the world is continuing to affect the United States and global economies and may affect our operations and those of third parties on which we rely, including this statementby causing disruptions in staffing, order fulfillment, and demand for purposesproduct. In addition, the COVID-19 pandemic may affect our revenue significantly in 2021, as it had in 2020. Additionally, while the potential ongoing negative economic impact brought by, and the duration of, complying with those safe-harbor provisions. Forward-looking statements are basedthe COVID-19 pandemic is still difficult to assess or predict, the impact of the COVID-19 pandemic on current expectationsthe global financial markets may reduce our ability to access capital, which could negatively impact our short-term and assumptions that arelong-term liquidity. The ultimate impact of the COVID-19 pandemic in 2021 is highly uncertain and subject to riskschange.

The Company has been and uncertaintiescontinues to be significantly impacted by COVID-19 which was directly related to business closures of key customers. If our business continues to be impacted, we may cause actual resultsreintroduce the salary reductions that we had in place from March 2020 through October 2020, or introduce other cost cutting activities.

As COVID-19 continues to differ materially fromevolve, the forward-looking statements. Our abilityextent to predict resultswhich COVID-19 continues to impact operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and changes in the severity of the outbreak, and the actions that may be required to try and contain COVID-19 or treat its impact. The Company continues to monitor the actual effectongoing pandemic and, the extent to which the continued spread of futurethe virus adversely affects our customer base and therefore revenue. As the COVID-19 pandemic is complex and rapidly evolving, the Company’s plans or strategies is inherently uncertain. Factorsas described above may change. At this point, the Company cannot reasonably estimate the duration and severity of the COVID-19 pandemic in 2021, which could have a material adverse effectimpact on ourthe business, results of operations, financial position and future prospectscash flows.

Share purchase agreement

The Company entered into a share purchase agreement dated August 1, 2020, for the private offer to a limited number of accredited investors of up to $6,500,000 worth of restricted shares of common stock of the Company at an issue price of $1.25 per share (“Share Purchase Agreement”). The shares are subject to restriction on a consolidated basis include, but are not limited to: changesresales until that date that is 365 days following the relevant closing date for any individual investor. As of April 14, 2021, the Company had raised an aggregate of $5,530,000 and issued 4,424,000 shares under the Share Purchase Agreement.

Critical Accounting Policiesand Use of Estimates

Use of estimates and assumptions

The preparation of the financial statements in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, andconformity with generally accepted accounting principles. These risksprinciples requires management to make estimates and uncertainties should also be considered in evaluating forward-lookingassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and undue reliance shouldthe reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include assumptions used in the revenue recognition of performance obligations, fair value of stock-based compensation awards, fair value measurements, right-of-use assets (“ROU”), lease liabilities, and allowance for doubtful accounts.

Revenue recognition

ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), became effective for the Company on January 1, 2018. The Company’s revenue recognition disclosure reflects its updated accounting policies that are affected by this new standard. The Company applied the “modified retrospective” transition method for open contracts for the implementation of Topic 606. As sales are and have been primarily from delivery of streaming services, delivery of subscription content services in customized formats, and delivery of hardware and ongoing content delivery through software and the Company has no significant post-delivery obligations, this new standard did not result in a material recognition of revenue on the Company’s consolidated financial statements for the cumulative impact of applying this new standard. Therefore, there was no cumulative effect adjustment required.

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. Revenue is measured based on the consideration the Company expects to receive in exchange for those products. In instances where final acceptance of the product is specified by the customer, revenue is deferred until all acceptance criteria have been met. Revenues are recognized under Topic 606 in a manner that reasonably reflects the delivery of the Company’s products and services to customers in return for expected consideration and includes the following elements:

Performance obligations and significant judgments

The Company’s revenue streams can be placedcategorized into the following performance obligations and recognition patterns:

Transaction prices for performance obligations are explicitly outlined in relevant contractual agreements; therefore, the Company does not believe that significant judgments are required with respect to the determination of the transaction price, including any variable consideration identified.

Cost of revenue

Cost of revenue represents the cost of delivered hardware and bundled software and is recognized at the time of sale. For ongoing licensing and hosting fees, cost of sales is recognized over time based on usage patterns.

Stock-based compensation

Share-based compensation awarded to employees is measured at the award date, based on the fair value of the award, and is recognized as an expense over the requisite vesting period. The Company measures the fair value of the share-based compensation issued to non-employees using the stock price observed in the trading market (for stock transactions) or the fair value of the award (for non-stock transactions), which were more reliably determinable measures of fair value than the value of the services being rendered. The measurement date is the earlier of (1) the date at which commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete.

Fair value measurements

The Company determines the fair value of its assets and liabilities using a hierarchy established by the accounting guidance that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The three levels of valuation hierarchy are defined as follows:

The carrying amount of the Company’s financial instruments, including cash, accounts receivable, deposits, short-term portion of notes receivable and notes payable, and current liabilities approximate fair value due to their short-term nature. The Company does not have financial assets or liabilities that are required under the U.S. GAAP to be measured at fair value on a recurring basis. The Company has not elected to use fair value measurement option for any assets or liabilities for which fair value measurement is not presently required.

The Company records assets and liabilities at fair value on nonrecurring basis as required by the U.S. GAAP. Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include items such statements. We undertake noas property and equipment, operating lease assets, goodwill, and other intangible assets, which are measured at fair value if determined to be impaired.

Leases

The Company determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and the lease obligations are recorded as liabilities and represent an obligation to updatemake lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments.

The ROU asset arrangement also consists of any prepaid lease payments and deferred rent liabilities. The lease terms used to calculate the ROU asset and related lease liability include options to extend or revise publicly any forward-looking statements, whetherterminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. The Company has lease agreements which require payments for both lease and non-lease components and has elected to account for these as a resultsingle lease component.

License Content Asset

On January 1, 2020, the Company adopted the guidance in ASU 2019-02, Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of new information, future eventsFilms and License Agreements for Program Materials, on a prospective basis. The Company capitalizes the fixed content fees and its corresponding liability when the license period begins, the cost of the content is known, and the content is accepted and available for streaming. If the licensing fee is not determinable or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results,reasonably estimable, no asset or liability is included hereinrecorded, and licensing costs are expenses as incurred. The Company amortizes licensed content assets into cost of revenue, using the straight-line method over the contractual period of availability. The liability is paid in our other filingsaccordance with the SEC.contractual terms of the arrangement.

Allowance for doubtful accounts

The Company assesses the collectability of receivables on an ongoing basis. A provision for the impairment of receivables involves significant management judgement and includes the review of individual receivables based on individual customers, current economic trends, and analysis of historical bad debts.

Consolidated Results of Operations

The following tables set forth our results of operations for the years ended June 30, 2018 and 2017periods presented. The period-to-period comparison of financial results is not necessarily indicative of future results:

We generated $86,715 in revenues during

Revenues

The Company’s revenue declined for the year ended December 31, 2020 from 2019 by $587,040 or 17%. Content and streaming services decreased $291,903 year over year as customers were impacted by the pandemic. A customer accounting for nearly all production services revenue terminated its relationship with the Company in February 2020, accounting for $127,165 decrease. An online video streaming customer’s subscription charges ended in August 2019, causing a year over year decrease of $124,258. A box office ticket reseller cancelled subscription charges in June 30, 2018,2020, resulting in a $33,747 decrease year over year. A media entertainment customer with multiple sites is charging contract minimums and are not charging for normal additional usage due to the pandemic in 2020, resulting in a $37,526 decrease year over year.

Content subscription revenues decreased $273,658 year over year 2020 is due to customers impacted by the pandemic. A customer’s multilocation gymnasium chain was provided with COVID-19 credits which decreased revenues year over year $105,411. A customer in the travel industry’s subscription revenues were credited due to non-operations and decreased $47,653 from 2019. A multilocation bar and restaurant chain owner’s locations were negatively impacted by the pandemic and COVID-19 credits resulted in a year over year subscription revenue decrease of $45,850.

Cost of revenue

The $195,536 increase in cost of revenues year over year is due to $380,890 amortization of contract assets in 2020 offset by usage decreases due to the pandemic. Hosting expenses decreased $72,788 as comparedautomated usage collection vendors track usage and charges the Company a percentage of usage measurement. Direct cost subcontractors decreased $41,292 primarily due to a consultant no longer providing editing/production services beginning in April 2020. Also, inventory cost of sales true up expense increased $27,007 year over year.

Total operating expenses

Operating expenses decreased $370,545, 2020 versus 2019 primarily due to personnel-related costs and impairment. Payroll increased $828,473 year over year due to headcount growth. Stock compensation to executives and employees increased $653,531 year over year. Consulting and staffing costs increased $816,726 year over year which includes $492,000 in warrants paid to an outside consultant with $45,400the remaining portion due to computer development and temporary staffing $837,716 increased operating expenses year over year due to accounting expenses due to financial statement review, audit and SEC reporting. There was an increase in revenuesamortization of intangibles of $289,079 due to the Spkr asset acquisition.

Decrease of $3,959,201 impairment expense was due to impairment of software intangible of 6,350,000 in the fourth quarter of 2019, offset by ScreenPlay brand impairment $130,000 and license contract asset impairment of $2,260,799 in the fourth quarter of 2020.

Other income and expenses

The gain/loss on settlement of obligations decreased $299,944 in 2019 there was a loss on settlement of obligations of $493,601 due to issuance of warrants to satisfy a liability, offset by a gain on settlement of obligations due to the relief of $192,557 of accrued interest.

Loss on extinguishment of debt decreased $258,417 year over year as there were no debt extinguishment gains or losses recognized in 2020 versus the $258,417 recognized in 2019.

In the first quarter of 2020 there was an inducement expense of $3,793,406 for the same period ended June 30, 2017. We expectpurchase of series B convertible preferred stock.

Provision for income taxes

Income tax expense increased $96,644 due to continuetax true up to achieve steadily increasing revenues within the coming months. However, as we are a start-up, we have limited operating history to rely upon and we cannot guarantee that our business planprepaid tax from 2019. The tax prepaid balance will be successful.adjusted as needed in 2021.

Liquidity and Capital Resources

As of December 31, 2020, the Company had cash of approximately $838,161. The following table provides a summary of the Company’s net cash flows from operating, investing, and financing activities.

The Company has historically sought and continues to seek financing from private sources to implement its business plans. To date, we only have 7 travel agencies as our main clientssatisfy its financial commitments, the Company has historically relied on private party financing, but that we contractedhas inherent risks in terms of availability and adequacy of funding.

For the next twelve months, the Company anticipates that it will need to assistsupplement its cash from revenues with hotel room price quotation and negotiation and communicating with hotelsadditional cash raised from equity investment or debt transactions to ensure that accurate reservations are madethe Company will have adequate cash to support its minimum operating cash requirements and thus to continue as a going concern.

There can be no guarantee or assurance that the Company can raise adequate capital from outside sources. If the Company is unable to raise funds when required or on acceptable terms, it may have to significantly reduce, or discontinue its operations.

Net cash flow from operating activities

There was approximately $3,737,156 more cash used in operations in the year ended December 31, 2020, than in 2019. Net income decreased $3,907,150 year over year. Non-cash add backs decreased $1,071,659 year over year.

Net cash flow from investing activities

Investing activities year over year increase is primarily due to an equity investment in the fourth quarter of 2020. In 2020, the Company invested $750,000 in an equity investment in an unconsolidated entity and $7,847 for the purchase of equipment as compared to $25,773 in 2019.

Net cash flow from financing activities

There was net cash increase from financing activities of $7,122,937 year over year, December 31, 2020 and 2019. In the year ended December 31, 2020, the Company raised $5,310,000 in new capital to continue strengthening its operations and building its organization, less $80,134 to pay for additional legal fees and other costs associated with Chinese clientele. Our management is actively working to secure additional contracts to grow the business.

We incurred costs and operating expensesmerger into a public company. The Company also received loan proceeds from the Paycheck Protection Program (“PPP”) loan program in the amount of $147,068 for$573,500. The Company issued convertible debt of $750,000.

In 2019, the Company paid $2,149,875 in the ScreenPlay acquisition offset by $1,000,000 in loan proceeds.

Going Concern

As of December 31, 2020, the Company had cash of $838,161 and an accumulated deficit of $41,544,144. During the year ended June 30, 2018, compared withDecember 31, 2020, the Company used net cash in operating expenses and costsactivities of $74,505 for$5,933,667. The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year ended June 30, 2017. Our costs andfrom the issuance date of these consolidated financial statements.

The Company’s primary source of operating expenses for the year ended June 30, 2018 mainly consisted of professional fees and related party professional fees.  Our operating expenses for the year ended June 30, 2017 mainly consisted of professional fees and related party professional fees.

We anticipate our operating expenses will increase as we undertake our plan of operations, including increased costs associated with marketing, personnel, and other general and administrative expenses, along with increased professional fees associated with SEC compliance as our business grows more complex and more expensive to maintain.

We incurred other expenses of $52,823 for the year ended June 30, 2018, as compared with other expenses of $20,036 for the year ended June 30, 2017. Our other expenses for the year ended June 30, 2018 consisted of interest expense and loss on the settlement of debt. Our other expenses for the year ended June 30, 2017 consisted of interest expense and related party interest expense.

15

On June 15, 2018, we were able to obtain a demand note with an outside investor for $150,000, the proceeds of which were used to prepay two convertible promissory notes in the aggregate payoff amount of $142,117 as well as paying off an outstanding convertible promissory note in the principal amount of $7,000. As a result of this transaction, we were able to eliminate all of our outstanding convertible debt, except for 4 notes with an aggregate principal amount of approximately $19,000. However, given ourfunds since inception has been cash needs, we may have to take on more convertible debt if more favorable financing is unavailable. If that is the case, we may have interest expense similar to or more than what we had experienced in 2018.

We incurred a net loss in the amount of $113,176 for the year ended June 30, 2018, as compared with a net loss in the amount of $49,141 for the year ended June 30, 2017. Our losses for each period are attributable to operating expenses together with a lack of significant revenues.

Liquidity and Capital Resources

As of June 30, 2018, we had $25,564 in current assets consisting of cash, accounts receivable, prepaid expenses and related party prepaid expenses. Our total current liabilities as of June 30, 2018 were $210,188. As a result, we have a working capital deficit of $184,624 as of June 30, 2018.

Operating activities used $136,947 in cash for the year ended June 30, 2018, as compared with $2,792 in cash provided for the year ended June 30, 2017. Our negative operating cash flow in 2018 was mainly the result of our net loss of $113,176, a decrease in customer deposits of $57,239 and a decrease in accounts payable related party, offset by a decrease in prepaid expenses of $51,241. We primarily relied on cash from loans to fund our operations during the period ended June 30, 2018.

Investing activities used $1,176 in cash for the year ended June 30, 2018, as compared with $2,000 for the year ended June 30, 2017. Our negative operating cash flow was from website costs.

Financing activities provided $137,417 in cash for the year ended June 30, 2018, as compared with $9,500 for the year ended June 30, 2017. Our positive operating cash flow in 2016 was mainly proceeds from related party notes payabledebt and convertible debentures.

On June 15, 2018, we were ableequity financing transactions. The ability of the Company to obtaincontinue as a demand note with an outside investor for $150,000, the proceedsgoing concern is dependent upon its ability to generate sufficient revenue and its ability to raise additional funds by way of which were used to prepay two convertible promissory notes in the aggregate payoff amount of $142,117 as well as paying off an outstanding convertible promissory note in the principal amount of $7,000. As a result of this transaction, we were able to eliminate all of our outstanding convertibleits debt except for 4 notes which have an aggregate principal amount of approximately $19,000. However, given our cash needs, we may have to take on more convertible debt if more favorableand equity financing is unavailable.

efforts. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additionaladequate financing will be available to usin a timely manner, on acceptable terms, or at all.

Our plan specifiesThe accompanying consolidated financial statements have been prepared on a minimum amountgoing concern basis, which contemplates the realization of $250,000assets and the satisfaction of liabilities in additional operating capital to operate for the next twelve months. If we are unable to raise $250,000 from this offering, our business will be in jeopardy and we could be formed to suspend our operations or go outnormal course of business. As such, there canThese consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or classification of the liabilities that might be no assurance that this offering willnecessary should the Company be successful. You may lose your entire investment.

Off Balance Sheet Arrangements

As of June 30, 2018, there were no off balance sheet arrangements.

Going Concern

We have negative working capital and have not yet received significant revenues from sales of services. These factors have caused our accountants to express substantial doubt about our abilityunable to continue as a going concern. The financial statements do not include any adjustment that might be necessary if we are unable to continue as a going concern.

16

Our ability of the Company to continue as a going concern is dependent on our generating cash frommanagement’s further implementation of the saleCompany’s on-going and strategic plans, which include continuing to raise funds through equity and/or debt raises. Should the Company be unable to raise adequate funds, certain aspects of our common stock and/or obtaining debt financingthe on-going and attaining future profitable operations. Management’sstrategic plans include selling our equity securities and obtaining debt financing to fund our capital requirement and ongoing operations; however, there can be no assurance we will be successful in these efforts.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices”may require modification. Management is in the Management Discussionprocess of identifying sources of capital via strategic partnerships, debt refinancing and Analysis. The SEC indicated that a “critical accounting policy” isequity investments through one which is both important toor more private placements soon.

Recent Accounting Pronouncements

See the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

Our critical accounting policies are set forth inCompany’s discussion under Note 2 to the– Significant Accounting Policies in its financial statements.

Recently Issued Accounting Pronouncements

We do not expect the adoptionstatements included in Item 15 of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.this Annual Report.

ItemITEM 7A. Quantitative and Qualitative Disclosures About Market RiskQUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

AWe are a smaller reporting company isas defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required byunder this Item.item.

ItemITEM 8. Financial Statements and Supplementary DataFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Interlink Plus, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Interlink Plus, Inc. (the “Company”) as of June 30, 2018 and June 30, 2017 and the related statements of operations, stockholders’ (deficit), and cash flows for each of the years in the two-year period ended June 30, 2018, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2018 and June 30, 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended June 30, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on the Company’s 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, 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 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 opinion.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 2 to the financial statements, the Company has negative working capital at June 30, 2018, has incurred recurring losses and recurring negative cash flow from operating activities, and has an accumulated deficit which raises substantial doubt about its ability to continue as a going concern.  Management’s plans concerning these matters are also described in Note 2.  The financial statements do not include any adjustments that might result from the outcomeand supplementary data required by this Item 8 are listed in Item 15 – “Exhibits and Financial Statement Schedules” of this uncertainty.Annual Report.

/s/ AMC AuditingITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIALS DISCLOSURES

AMC Auditing

We have served as the Company’s auditor since 2015None.

Las Vegas, Nevada

September 28, 2018ITEM 9A. CONTROLS AND PROCEDURES

INTERLINK PLUS, INC.

BALANCE SHEETS

(audited)

See accompanying notes to financial statements.

INTERLINK PLUS, INC.

STATEMENTS OF OPERATIONS

(audited)