UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

~~FORM 10-Q~~

☒	~~QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

☒QUARTERLY REPORT PURSUANT TO SECTION13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March 31, 2020~~June 30, 2021

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

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

For the transition period from to

Commission File Number: 000-55591

LOOP MEDIA, INC.

(Exact name of registrant as specified in its charter)

Nevada		47-3975872
(State or other jurisdiction of incorporation)		(IRS Employer Identification Number)


700 N. Central Ave.,Suite 430, Glendale, CA91203
(Address of principal executive offices) (Zip Code)

~~(818)~~ (818) 823-4801
(Registrant’s telephone number, including area code)

~~Interlink Plus, Inc. 4952 S. Rainbow Blvd., Suite 326 Las Vegas, Nevada~~
~~(Former name, former address and former fiscal year, if changed since last report)~~

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

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒[X] Yes ☐[ ] No

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 ☒
Emerging growth company ☒

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

☐Yes ☒No

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

As of ~~November 2, 2020,~~August 6, 2021, the registrant had ~~115,914,897~~127,680,014 shares of common stock issued and outstanding.

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1Financial Statements.

LOOP MEDIA, INC.
AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31,
2020 December 31,
2019
ASSETS (Unaudited)
Current assets
Cash $ 1,173,840 $ 1,011,445
Accounts receivable 568,470 673,971
Inventory 51,505 28,395
Prepaid expenses and other current assets 81,517 13,697
Prepaid income taxes 118,543 118,283
Operating lease right-of-use assets – current 137,817 155,868
Note receivable – current 10,215 10,215
Total current assets 2,141,907 2,011,874

Non-current assets
Deposit 19,831 19,831
Property and equipment, net 25,014 28,027
Operating lease right-of-use assets 311,339 347,076
Intangible assets, net 1,072,264 1,128,555
Note receivable 100,884 102,318
Goodwill 583,086 583,086
Total non-current assets 2,112,418 2,208,893
Total assets $ 4,254,325 $ 4,220,767

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 875,485 $ 1,044,795
Payable on acquisition 250,125 250,125
Loans payable — 1,000,000
Deferred income 68,098 116,440
Convertible debt – current, net of unamortized discount of $22,746 and $0 as of March 31, 2020 and December 31, 2019, respectively 590,397 —
Lease liability - current 136,468 147,458
Total current liabilities 1,920,573 2,558,818

Non-current liabilities
Convertible debt – related party, net of unamortized discount of $2,211,391 and $2,360,898 as of March 31, 2020 and December 31, 2019, respectively 788,609 639,102
Convertible debt, net of unamortized discount of $0 and $24,291 as of March 31, 2020 and December 31, 2019, respectively — 588,852
Lease liability 324,017 360,369
Total non-current liabilities 1,112,626 1,588,323
Total liabilities 3,033,199 4,147,141

Commitments and Contingencies (Note 10)

STOCKHOLDERS’ EQUITY
Series A Convertible Preferred stock, $0.0001 par value, 666,667 shares authorized, 30,667 and 0 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively 3 —
Series B Convertible Preferred stock, $0.0001 par value, 3,333,334 shares authorized, 200,000 and 0 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively 20 —
Common Stock, $0.0001 par value, 316,666,667 shares authorized, 112,131,578 and 101,882,647 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively 11,213 10,188
Common stock subscribed and not yet issued 155,144 150,144
Additional paid-in capital 33,664,085 26,038,546
Accumulated deficit (32,609,339 ) (26,125,252 )
Total stockholders’ equity 1,221,126 73,626
Total liabilities and stockholders’ equity $ 4,254,325 $ 4,220,767


	June 30,		December 31,
	2021		2020
ASSETS	(UNAUDITED)
Current assets
Cash	$	929,403	$	838,161
Accounts receivable, net		810,594		669,679
Inventory		27,096		90,300
Prepaid expenses and other current assets		516,354		64,765
Prepaid income tax		20,028		21,689
License content assets - current		1,147,853		1,723,569
Note receivable - current		—		10,215
Total current assets		3,451,328		3,418,378
Non-current assets
Deposits		15,649		15,649
License content assets - non current		336,360		371,041
Equipment, net		18,212		24,146
Operating lease right-of-use assets		274,687		347,075
Intangible assets, net		4,741,550		3,169,266
Note receivable		—		96,498
Equity method investments		—		1,613,479
Goodwill		6,412,808		583,086
Total non-current assets		11,799,266		6,220,240
Total assets	$	15,250,594	$	9,638,618
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	648,502	$	964,276
Payable on acquisition		250,125		250,125
License content liabilities - current		1,024,500		1,251,500
Note payable - current		—		314,829
Deferred Income		195,164		128,622
Convertible debt related party - current, net		599,456		279,705
Convertible debt – current, net		71,578		393,943
Lease liability - current		161,662		145,271
Total current liabilities		2,950,987		3,728,271
Non-current liabilities
Convertible debt – related party, less current portion, net		1,317,501		1,223,768
Convertible debt, less current portion, net		225,994		160,165
Note payable – non-current		486,638		258,671
License content liabilities - non current		—		385,000
Lease liability		119,178		208,625
Total non-current liabilities		2,149,311		2,236,229
Total liabilities		5,100,298		5,964,500

Commitments and contingencies (Note 10)		—		—

Stockholders’ equity
Series B Convertible Preferred stock, $0.0001 par value, 3,333,334 shares authorized, 200,000 and 200,000 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. Liquidation preference of $1.00 per share before any payment to Series A Preferred or Common stock		20		20
Series A Convertible Preferred stock, $0.0001 par value, 16,666,667 shares authorized, 0 and 30,667 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. Liquidation preference of $0.10 per share.		—		3
Common Stock, $0.0001 par value, 316,666,667 shares authorized, 127,316,716 and 118,128,008 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		12,732		11,813
Common stock subscribed and not yet issued		—		485,144
Additional paid in capital		63,853,146		44,721,282
Accumulated deficit		(53,715,602)		(41,544,144)
Total stockholders' equity		10,150,296		3,674,118
Total liabilities and stockholders' equity	$	15,250,594	$	9,638,618

See the accompanying notes to the unaudited condensed consolidated financial ~~statements.~~statements

Table of Contents

LOOP MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

~~(Unaudited)~~(UNAUDITED)

For the Three Months Ended
March 31,

2020 2019
Total revenue $ 826,388 $ 850,310
Cost of revenue 212,259 205,321
Gross profit 614,129 644,989

Operating expenses
Selling, general and administrative 3,058,653 2,959,559
Total operating expenses 3,058,653 2,959,559

Loss from operations (2,444,524 ) (2,314,570 )

Other income (expense)
Interest income 1,284 1,245
Interest expense (247,441 ) (237,641 )
Gain on settlement of obligations — 6,416
Inducement expense (3,793,406 ) —
Total other expense (4,039,563 ) (229,980 )

Income tax expense — —

Net loss (6,484,087 ) (2,544,550 )

Deemed dividend (3,800,000 ) -

Net loss attributable to common shareholders $ (10,284,087 ) $ (2,544,550 )

Net loss per common share – basic and diluted $ (0.09 ) $ (0.04 )
Weighted average number of common shares outstanding – basic and diluted 108,716,567 62,196,016


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020

Revenue	$	1,160,793	$	635,740	$	1,954,836	$	1,462,128
Cost of revenue		763,359		172,661		1,487,937		384,920
Gross profit		397,434		463,079		466,899		1,077,208
Operating expenses
Selling, general and administrative		4,269,169		1,638,038		12,175,453		4,696,691
Total operating expenses		4,269,169		1,638,038		12,175,453		4,696,691

Loss from operations		(3,871,735)		(1,174,959)		(11,708,554)		(3,619,483)

Other income (expense)
Interest income		—		1,175		5,657		2,459
Interest expense		(632,094)		(245,104)		(1,048,012)		(492,545)
Income from equity investment		—		—		1,551		—
Gain on extinguishment of debt		579,486				579,486		—
Inducement expense		—		—		—		(3,793,406)
Other income		—		10,000		—		10,000
Total other income (expense)		(52,608)		(233,929)		(461,318)		(4,273,492)
Income tax expense		—		—		(1,586)		—
Net loss	$	(3,924,343)	$	(1,408,888)	$	(12,171,458)	$	(7,892,975)
Deemed dividend		—		—		—		(3,800,000)
Net loss attributable to common stockholders	$	(3,924,343)	$	(1,408,888)	$	(12,171,458)	$	(11,692,975)
Basic and diluted net loss per common share	$	(0.03)	$	(0.01)	$	(0.10)	$	(0.11)
Weighted average number of common shares outstanding		124,965,420		112,131,578		122,572,955		110,424,073

See the accompanying notes to the unaudited condensed consolidated financial ~~statements.~~statements

Table of Contents

LOOP MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED ~~MARCH 31, 2020~~JUNE 30, 2021

~~(Unaudited)~~(UNAUDITED)

Preferred Stock A Preferred Stock B Common Stock Common Stock Subscribed Additional Paid-in Accumulated
Shares Amount Shares Amount Shares Amount Class A Class B Capital Deficit Total
BALANCES, January 1, 2020 — $ — — $ — 101,882,647 $ 10,188 $ 150,144 $ — $ 26,038,546 $ (26,125,252 ) $ 73,626
Shares issued for cash — — — — 1,040,000 104 — 389,896 — 390,000
Cash received for common stock subscribed — — — — — — 20,000 — — — 20,000
Common stock subscribed issued — — — — 40,000 4 (15,000 ) — 14,996 — —
Shares issued for consulting fees — — — — 4,000,000 400 — — 1,499,600 — 1,500,000
Shares issued in connection with reverse merger 30,667 3 — — 5,168,931 517 — — (264,496 ) — (263,976 )
Shares issued for cash — 100,000 10 — — — — 4,799,990 — 4,800,000
Shares issued for debt settlement — — 100,000 10 — — — — 4,799,990 — 4,800,000
Warrants issued for settlement of debt — — — — — — — — 185,563 — 185,563
Deemed dividend (3,800,000 ) - (3,800,000)
Net loss — — — — — — — — — (6,484,087 ) (6,484,087 )
BALANCES, March 31, 2020 30,667 $ 3 200,000 $ 20 112,131,578 $ 11,213 $ 155,144 $ — $ 33,664,085 $ (32,609,339 ) $ 1,221,126


		Preferred Stock Series B			Preferred Stock Series A			Common Stock			Common stock		Additional Paid		Accumulated
		Shares	Amount		Shares	Amount		Shares	Amount		subscriptions		in Capital		Deficit		Total
BALANCES, December 31, 2020		200,000	$	20	30,667	$	3	118,128,008	$	11,813	$	485,144	$	44,721,282	$	(41,544,144)	$	3,674,118
Issuance of common stock subscribed		—		—	—		—	497,429		49		(485,144)		485,095		—		—
Conversion of convertible debenture		—		—	—		—	1,003,618		100		—		376,256		—		376,356
Shares issued for cash		—		—	—		—	1,564,000		156		—		1,954,844		—		1,955,000
Stock-based compensation		—		—	—		—	—		—		—		5,419,800		—		5,419,800
Warrants issued in conjunction with debenture		—		—	—		—	—		—		—		43,654		—		43,654
Beneficial conversion feature of convertible debenture		—		—	—		—	—		—		—		306,346		—		306,346
Net loss		—		—	—		—	—		—		—		—		(8,247,115)		(8,247,115)
BALANCES, March 31, 2021		200,000	$	20	30,667	$	3	121,193,055	$	12,118	$	—	$	53,307,277	$	(49,791,259)	$	3,528,159
Shares issued for cash		—		—	—		—	960,000		96		—		1,199,904		—		1,200,000
Stock-based compensation		—		—	—		—	—		—		—		1,482,746		—		1,482,746
Shares issued for consulting fees		—		—	—		—	79,051		8		—		199,992		—		200,000
Shares issued for acquisition		—		—	—		—	2,003,435		200		—		5,689,555		—		5,689,755
Warrants issued for severance		—		—	—		—	—		—		—		82,000		—		82,000
Payment in kind interest stock issuance		—		—	—		—	14,475		3		—		41,976		—		41,980
Beneficial conversion feature of convertible debenture		—		—	—		—	—		—		—		1,705,709		—		1,705,709
Warrants issued in conjunction with debenture		—		—	—		—	—		—		—		144,291		—		144,291
Conversion of series A convertible stock to common stock	��	—		—	(30,667)		(3)	3,066,700		307		—		(304)		—		—
Net loss		—		—	—		—	—		—		—		—		(3,924,343)		(3,924,343)
BALANCES, June 30, 2021		200,000	$	20	—	$	—	127,316,716	$	12,732	$	—	$	63,853,146	$	(53,715,602)	$	10,150,296

See the accompanying notes to the unaudited condensed consolidated financial ~~statements.~~statements

Table of Contents

LOOP MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE ~~THREE~~SIX MONTHS ENDED ~~MARCH 31, 2019~~JUNE 30, 2020

~~(Unaudited)~~(UNAUDITED)

Common Stock -
Class A Common Stock -
Class B Common Stock
Subscribed Additional
Paid-in Accumulated
Shares Amount Shares Amount Class A Class B Capital Deficit Total
BALANCES, January 1, 2019 50,907,418 $ 5,091 9,755,304 $ 976 $ 92,000 $ 1,890,000 $ 15,191,173 $ (14,613,510 ) $ 2,565,730
Common stock subscribed issued 37,605 4 — — (25,000 ) — 24,996 — —
Shares issued for services — — 2,800,000 280 — (1,890,000 ) 1,889,720 — —
Shares issued for employment settlement — — 1,866,667 187 — — 1,240,773 — 1,240,960
Share-based compensation — — — — 27,898 — 27,898
Net loss — — — — — (2,544,550 ) (2,544,550 )
BALANCES, March 31, 2019 50,945,023 $ 5,095 14,421,971 $ 1,443 $ 67,000 $ — $ 18,374,560 $ (17,158,060 ) $ 1,290,038


		Preferred Stock B			Preferred Stock A			Common Stock				Common stock		Additional Paid		Accumulated
		Shares	Amount		Shares	Amount		Shares	Amount			subscriptions		in Capital		Deficit		Total
BALANCES, December 31, 2019		—	$	—	—	$	—	101,882,647	$	10,188		$	150,144	$	26,038,546	$	(26,125,252)	$	73,626
Shares issued for cash		—		—	—		—	1,040,000		104			—		389,896		—		390,000
Cash received for common stock subscribed		—		—	—		—	—		—			20,000		—		—		20,000
Common stock subscribed issued		—		—	—		—	40,000		4			(15,000)		14,996		—		—
Shares issued for consulting fees		—		—	—		—	4,000,000		400			—		1,499,600		—		1,500,000
Shares issued in connection with reverse merger		—		—	30,667		3	5,168,931		517			—		(264,496)		—		(263,976)
Shares issued for cash		100,000		10	—		—	—		—			—		4,799,990		—		4,800,000
Shares issued for debt settlement		100,000		10	—		—	—		—			—		4,799,990		—		4,800,000
Warrants issued for settlement of debt to related party		—		—	—		—	—		—			—		185,563		—		185,563
Deemed dividend		—		—	—		—	—		—			—		(3,800,000)		—		(3,800,000)
Net loss		—		—	—		—	—		—			—		—		(6,484,087)		(6,484,087)
BALANCES, March 31, 2020	$	200,000	$	20	30,667	$	3	112,131,578	$	11,213		$	155,144	$	33,664,085	$	(32,609,339)	$	1,221,126
Stock-based compensation		—		—	—		—	—		—			—		171,798		—		171,798
Net loss		—		—	—		—	—		—			—		—		(1,408,888)		(1,408,888)
BALANCES, June 30, 2020	$	200,000	$	20	30,667	$	3	112,131,578	$	11,213	$	$	155,144	$	33,835,883	$	(34,018,227)	$	(15,964)

See the accompanying notes to the unaudited condensed consolidated financial ~~statements.~~statements

Table of Contents

LOOP MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

~~(Unaudited)~~(UNAUDITED)


	Six months ended June 30,
	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(12,171,458)	$	(7,892,975)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount		770,546		302,104
Depreciation and amortization expense		733,651		118,363
Amortization of license contract assets		610,397		—
Amortization of right-of-use assets		72,388		66,165
Bad debt expense		146,637		—
Gain on extinguishment of debt		(579,486)		—
Warrants issued for severance		82,000		—
Stock-based compensation		6,902,547		1,671,798
Inducement expense		—		3,793,406
Equity method investment income		(1,551)		—
Change in operating assets and liabilities:
Accounts receivable		(180,839)		74,896
Prepaid income tax		1,661		—
Inventory		63,204		(48,215)
Prepaid expenses		(251,588)		(70,609)
Prepaid income tax		—		(260)
Accounts payable and accrued liabilities		(217,595)		68,491
License content liability		(612,000)		—
License contract asset		—		(227,000)
Operating lease liabilities		(73,056)		(64,735)
Deferred income		(8,458)		(49,251)
NET CASH USED IN OPERATING ACTIVITIES		(4,713,000)		(2,257,822)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of EON Media Group, net of cash acquired		(749,937)		—
Purchase of equipment		—		(10,599)
Collection of note receivable		—		2,872
NET CASH USED IN INVESTING ACTIVITIES		(749,937)		(7,727)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock		3,155,000		390,000
Proceeds from issuance of preferred stock		—		1,000,000
Proceeds from PPP loan		486,638		573,500
Principal payment of convertible debt		(36,078)		—
Proceeds from issuance of convertible debt		2,200,000		—
Repayment of stockholder loans		(251,380)		—
Reverse merger cost		—		(80,134)
Proceeds from issuing common stock subscribed		—		20,000

NET CASH PROVIDED BY FINANCING ACTIVITIES		5,554,179		1,903,366

Change in cash and cash equivalents		91,242		(362,183)

Cash, beginning of the year		838,161		1,011,445

Cash, end of the year	$	929,403	$	649,262
SUPPLEMENTAL DISCLOSURES OF CASH FLOW STATEMENTS
Cash paid for interest	$	192,632	$	27,175
Cash paid for income taxes	$	—	$	260
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES
Shares issued in connection with reverse merger	$	—	$	517
Preferred stock issued in connection with reverse merger	$	—	$	3
Preferred stock issued for debt settlement	$	—	$	20
Conversion of convertible debenture to common stock	$	376,356	$	—
Common stock issued for acquisition	$	5,689,755	$	—
Debt and accrued interest exchanged as part of debt settlement	$	—	$	1,006,594
Accrued interest rolled into convertible note	$	—	$	150,411

Three months ended
March 31,

2020 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (6,484,087 ) $ (2,544,550 )
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount 151,052 149,392
Depreciation and amortization expense 59,304 55,130
Amortization of right-of-use asset 32,963 61,334
Stock-based compensation 1,500,000 1,268,858
Inducement expense 3,793,406 —
Changes in operating assets and liabilities:
Accounts receivable 105,501 69,249
Inventory (23,110 ) (2,968 )
Prepaid expenses and other current assets (67,820 ) 2,813
Prepaid income tax (260 ) (800 )
Accounts payable and accrued liabilities (160,995 ) 68,900
Income tax payable — (800 )
Operating lease liabilities (26,517 ) (60,151 )
Deferred income (48,342 ) (58,755 )
NET CASH USED IN OPERATING ACTIVITIES (1,168,905 ) (992,348 )

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment — (12,719 )
Collection of note receivable 1,434 1,377
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,434 (11,342 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares 390,000 —
Cash paid on payable on acquisition — (2,025,000 )
Repayment of stockholder loans — (348,286 )
Reverse merger costs charged to equity (80,134 ) —
Proceeds received for common stock subscribed 20,000 —
Proceeds received for preferred shares 1,000,000 —
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,329,866 (2,373,286 )

Change in cash and cash equivalents 162,395 (3,376,976 )

Cash, beginning of period 1,011,445 3,838,661

Cash, end of period $ 1,173,840 $ 461,685

SUPPLEMENTAL DISCLOSURES
Cash paid for interest $ — $ 12,623
Cash paid for income taxes $ 4,360 $ 5,712

NON-CASH TRANSACTIONS
Shares issued in connection with reverse merger $ 517 $ —
Preferred shares issued in connection with reverse merger $ 3 $ —
Preferred Shares issued for debt settlement $ 20 $ —
Debt and accrued interest exchanged as part of debt settlement $ 1,006,594 $ —
Assumption of lease by related party $ 20,825 $ —
Assumption of debt as part of reverse merger $ 183,842 $ —
Warrants issued to extinguish debt with related party $ 185,563 $ —
Right of use assets upon the adoption of ASC 842 $ — $ 444,112
Addition of new leases accounted for under ASC 842 $ — $ 75,274
Shares issued for common stock subscribed $ 15,000 $ 1,915,000
Deemed dividend $ 3,800,000 $ —

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Assumption of lease by related party	$	—	$	20,825
Assumption of debt as part of reverse merger	$	—	$	183,842
Warrants issued to extinguish debt with related party	$	—	$	185,563
Payment in kind common stock payment	$	41,979	$	—
Warrants issued as debt discount on convertible debenture	$	187,945	$	—
Beneficial conversion feature recorded as debt discount	$	2,012,055	$	—
Prepaid common stock paid to consultant	$	200,000	$	—
Conversion of Preferred Class A stock to common stock	$	307	$	—
Shares issued for common stock subscribed	$	485,144	$	15,000
Deemed dividend	$	—	$	3,800,000

See the accompanying notes to the unaudited condensed consolidated financial ~~statements.~~statements

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LOOP MEDIA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~MARCH 31, 2020~~JUNE 30, 2021

~~(Unaudited)~~(UNAUDITED)

NOTE 1 -– BUSINESS

Loop Media, Inc. ~~(f/k/a~~(the “Company” and formerly, 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 152,823,970 ~~(number of~~ shares ~~is pre-stock split amount, the post stock split amount 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, ~~2015~~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~~We are a multichannel digital platform media company that offers self-curated, premium videos to customers in OOH venues and D2C on their personal in home and mobile devices. We deliver highly curated music video content from major and independent record labels, as well as movie and television trailers, viral videos, drone footage, lifestyle and atmospheric channels, kid friendly content, sports highlights and news clips. We believe we are the ~~Merger, on February 6, 2020,~~only service in the ~~Company entered into~~United States licensed by all three major music labels to provide music video content in both the OOH and D2C markets. We curate content seeking to create a ~~Purchase Agreement (the “Asset Purchase Agreement”) with Zixiao Chen~~compelling user experience by, among other things, curating our carefully selected Playlists Playlists for OOH venues and thoughtfully developed streaming channels (“~~Buyer”~~Channels”) for delivery to our OTT platform partners and to users of our mobile application. Our digital platform service seeks to surround and engage consumers with a diverse offering of video content on their chosen digital screen wherever they are located. We believe we are the ~~purchase~~only company offering a digital out of ~~assets relating~~home (“DOOH”) service that also has a consumer mobile application, which increases the connectivity and interactivity of our OOH services.

We operate a “freemium” business model, offering our Service on either a Premium or Ad-Supported basis. We deliver our Service to OOH venues primarily through our proprietary Loop Media-designed Loop Player and to consumers primarily through our fully functional and operational Loop App and across OTT streaming platforms on CTVs. The underlying content that we curate and deliver through our service is predominantly licensed from third parties and consists primarily of music videos. We also offer an increasing range of non-music video content that we are acquiring through additional licenses and producing internally in our Loop Media Studios business division. This additional and diversified content offering is a large part of our business model going forward. We operate almost exclusively in the ~~Company’s two major~~United States but are looking at further overseas expansion, primarily in Latin America and Asia.

We are an early-stage media operating company, with limited historical revenue and negative cash flow from operations. Our revenue is generated by advertisers who pay for our ad inventory in order to have their advertisements viewed by the end users of our Ad-Supported Service and by business ~~segments: travel agency assistance services~~owners and ~~convention services (together, the “Business”). In consideration~~users who pay a subscription fee to access our Subscription Service without advertisements. Our revenue for the ~~assets~~fiscal year ended December 31, 2020, consisted almost entirely of the Business, Buyer transferred to the Company 2,000,000 shares of its 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 were retired and restored to the status of authorized and unissued shares.

~~Loop owns 100% of the capital stock of ScreenPlay.~~revenue from our historic ScreenPlay business, which is a ~~combination of ScreenPlay, Inc. (“SPI”), a Washington corporation incorporated in 1991,~~subscription-based OOH focused business, with little to no advertising revenue and SPE, Inc. (“SPE”), a Washington corporation incorporated in 2008. ScreenPlay provides customized audiovisual environments that support integrated brand strategies for clients in the retail, hospitality,no consumer users, and which does not fully reflect revenues expected from our more recent product and Service offerings and business ~~services markets, and for online content providers.~~

~~For accounting purposes, Loop was the surviving entity. The transaction was accounted for as a recapitalization of Loop pursuant~~model. We have begun 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 are 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~~record increased revenue share ~~and per share information in the accompanying unaudited condensed consolidated financial statements and footnotes has been retroactively adjusted~~ for the ~~effects of the reverse split for all periods presented.~~six months ended June 30, 2021, as our advertising business model has more recently been deployed and operating more fully.

Going Concern and Management’s Plans

As of ~~March 31, 2020,~~June 30, 2021, the Company ~~had~~reported a cash balance of ~~$1,173,840~~$929,403 and an accumulated deficit of ~~$28,815,933.~~$ (53,715,602). During the ~~three~~six months ended ~~March 31, 2020,~~June 30, 2021, the Company used net cash in operating activities of ~~$1,168,905.~~

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($4,713,000). 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 from the issuance date of ~~the~~these unaudited condensed consolidated financial statements.

The Company’s primary source of operating funds since inception has been cash proceeds from debt and equity ~~financing.~~financing transactions. The ability of the Company to continue as a going concern is dependent upon its ability to generate sufficient revenue and its ability to raise additional funds by way of aits debt and equity ~~financing.~~financing efforts.

~~Accordingly, the~~The accompanying unaudited condensed consolidated financial statements have been prepared ~~in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate continuation of the Company as~~on a going concern ~~and~~basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. ~~The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The~~These unaudited condensed consolidated financial statements do not include any ~~adjustment~~adjustments relating to the recovery of the recorded assets or classification of the liabilities that might ~~result from~~be necessary should the ~~outcome~~Company be unable to continue as a going concern. The ability of the Company to continue as a going concern is dependent on management’s further implementation of the Company’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 the on-going and strategic plans may require modification. Management is in the process of identifying sources of capital via strategic partnerships, debt refinancing and equity investments through one or more private placements.

The spread of a novel strain of coronavirus (COVID-19) around the world beginning in the first half of 2020 has caused significant volatility in U.S. and international markets. While the pandemic could ultimately lead to a material adverse impact on the business, results of operations and financial condition of the Company, at the time of issuance, the extent of the impact is uncertain. Due to the rapid development and fluidity of this ~~uncertainty.~~situation, the magnitude and duration of the pandemic and its impact on the Company's future operations and liquidity is uncertain as of the date of filing this report.

NOTE 2 -– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements

The following (a) condensed consolidated balance sheet as of ~~March~~December 31, 2020, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company for the six months ended June 30, 2021, have been prepared in accordance with accounting principles generally accepted in the United States ~~(“GAAP”~~("US GAAP") for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation ~~S-X.~~S-X of the Securities Act of 1933. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the ~~three~~six months ended ~~March 31, 2020~~June 30, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, ~~2020.~~ 2021.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, ~~2019~~2020 included in the Company’s ~~Current~~Annual Report on Form ~~8-K/A (Amendment No. 1),~~10-K filed with the Securities and Exchange Commission ~~(“SEC”~~("SEC") on ~~September 28, 2020.~~April 15, 2021.

Basis of Presentation and Principles of Consolidation

The unaudited condensed consolidated financial statements ~~include~~are prepared using the ~~accounts~~accrual basis of ~~the Company and its wholly owned subsidiary, Screenplay.~~accounting in accordance with US GAAP. All ~~inter-company~~intercompany transactions and balances have been eliminated on consolidation.

Business Combinations

The Company recognizes separately from goodwill the assets acquired and the liabilities assumed in a business combination at the acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company uses best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date,

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however, estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to the condensed consolidated statement of operations.

The Company issues cash, equity, or a combination thereof as consideration when consummating business combinations. The Company evaluates the nature of the consideration given and any restrictions on use to determine the appropriate accounting treatment. Cash consideration and equity awards without performance conditions are generally accounted for in accordance with ASC 805, Business Combinations.

Equity method investments

The Company accounts for investments in unconsolidated entities under the equity method of accounting if it could exercise significant influence over the operating and financial policies of an entity but does not have a controlling financial interest. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company’s proportionate share of the net income (loss) resulting from these investments are reported under the line-item captioned equity method investment income in our condensed consolidated statements of operations. The carrying value of our equity method investments is reported in equity method investments in the condensed consolidated balance sheets. The Company’s equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s income or loss and dividend paid, if any. The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include assumptions used in the fair value of stock-based compensation, the fair value of other equity and debt instruments, ~~right-to-use assets, lease liabilities,~~ fair value of intangible assets, recoverability of license content assets, and useful lives of ~~assets and allowance for doubtful accounts.~~assets.

~~Concentration of Credit Risk~~License Content Assets

The Company grants credit in the normal course of business to their customers. Periodically, the Company reviews past due accounts and makes decisions about future credit on a customer by customer basis. Credit risk is the risk that one party to a financial instrument will cause a loss for the other party by failing to discharge an obligation. As of March 31, 2020 and December 31, 2019, the Company is exposed to credit risk to the extent that its clients become unable to meet their payment obligations.

~~Induced Debt Extinguishment~~

On ~~February 5,~~January 1, 2020, the Company ~~issued 200,000 shares of Series B convertible preferred stock for $1,000,000 in cash and the exchange of a $1,000,000 loan to the Company plus accrued interest of $6,594. The Company applied~~adopted the guidance in ~~ASC 470-20 resulting~~Accounting Standards Update (“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 Films 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. 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 accordance with the ~~recording~~contractual terms of ~~an inducement charge of $3,793,406 in~~ the ~~unaudited condensed consolidated statement of operations for the three months ended March 31, 2020 (Note 8).~~arrangement.

Fair Value of Financial Instruments

~~FASB ASC 820,~~ ~~Fair Value Measurements and Disclosures~~~~, requires disclosure of~~The Company determines the fair value of ~~financial instruments held~~its assets and liabilities using a hierarchy established by the ~~Company. FASB ASC 825,~~ ~~Financial Instruments~~~~, defines~~accounting guidance that prioritizes the inputs to valuation techniques used to measure fair ~~value,~~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 ~~establishes a three-level~~the lowest priority to valuations based upon unobservable inputs that are significant to the valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.(Level 3 measurements). The three levels of valuation hierarchy are defined as follows:

	●
	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

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	●
	●	Level 2 inputs to the valuation methodology included quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●
	●	Level 3 inputs to the valuation methodology is one or more unobservable inputs which are significant to the fair value measurement.

The ~~fair value~~carrying amount of the Company’s financial instruments, including cash, accounts receivable, deposits, short-term portion of notes receivable and notes payable, ~~for acquisition,~~ and ~~accounts payable~~current liabilities approximate ~~their carrying~~fair value due to their short-term nature. The ~~fair value of the deposits, long-term portion of notes receivable and the amount due~~Company does not have financial assets or liabilities that are required under US GAAP to ~~stockholders, and convertible notes approximate their fair values and are measured using Level 2 of the fair value hierarchy. The Company’s cash is~~be measured at fair value ~~under the~~on a recurring basis. The Company has not elected to use fair value ~~hierarchy based on Level 1 quoted prices in active markets~~measurement option for ~~identical~~any assets or ~~liabilities.~~

~~Revenue Recognition~~

~~Accounting Standards Update (“ASU”) No. 2014-09,~~ ~~Revenue from Contracts with Customers~~ ~~(“Topic 606”), became effective~~liabilities 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 didwhich fair value measurement is 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 adjustmentpresently required. ~~The Company made no adjustments to its previously-reported total revenues, as those periods continue to be presented in accordance with its historical accounting practices under Topic 605,~~ ~~Revenue Recognition~~.

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:

●

~~executed contracts with the Company’s customers that it believes are legally enforceable;~~

●

~~identification of performance obligations in the respective contract;~~

●

~~determination of the transaction price for each performance obligation in the respective contract;~~

●

~~allocation of the transaction price to each performance obligation; and~~

●

~~recognition of revenue only when the Company satisfies each performance obligation.~~

~~Performance Obligations and Significant Judgments~~

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

●

~~Delivery of streaming services including content encoding and hosting. The Company recognizes revenue over the term of the service based on bandwidth usage.~~

●

~~Delivery of subscription content services in customized formats. The Company recognizes revenue over the term of the service.~~

●

~~Delivery of hardware for ongoing subscription content delivery through software. The Company recognizes revenue at the point of hardware delivery.~~

Transaction prices for performance obligations are explicitly outlined in relevant 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.

~~Disaggregation of Revenue~~

The Company’s revenues are disaggregated into the following revenue streams. The content and streaming services revenue including content encoding and hosting are recognized over the term of the service based on bandwidth usage. The content subscription services revenue in customized formats is recognized over the term of the service. The hardware for ongoing subscription content delivery is recognized at the point of hardware delivery. The following table represents revenue by category for the three months ended March 31, 2020 and 2019:

March 31,
2020

March 31,
2019

Content and streaming services $ 383,541 $ 433,272
Content subscription services 411,029 364,335
Hardware for ongoing subscription content 31,818 52,703
Total revenue $ 826,388 $ 850,310

~~Customer Acquisition Costs~~

The Company records ~~commission expense associated with subscription revenue. The Company has elected~~assets and liabilities at fair value on nonrecurring basis as required by US GAAP. Assets recognized or disclosed at fair value in the ~~practical expedient that allows the Company~~condensed consolidated financial statements on a nonrecurring basis include items such as property and equipment, operating lease assets, goodwill, and other intangible assets, which are measured at fair value if determined to ~~recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.~~be impaired.

~~Cost of revenue~~Net Loss per Share

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.

~~Deferred income~~

The Company bills subscription services in advance of when the service period is performed. The deferred income recorded at March 31, 2020 and December 31, 2019, represents the Company’s accounting for the timing difference in when the subscription fees are received and when the performance obligation is satisfied.

~~Net loss Per Share~~

The Company accounts for net loss per share in accordance with Accounting Standards Codification (“ASC”) ~~subtopic~~ASC 260-10, Earnings Per Share ~~(“ASC 260-10”)~~, which requires presentation of basic and diluted earnings per share ~~(“EPS”~~("EPS") on the face of the statement of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS.

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period. It excludes the dilutive effects of any potentially issuable common shares.

Diluted net loss per share is calculated by including any potentially dilutive share issuances in the denominator.

The following securities are excluded from the calculation of weighted average diluted shares at ~~March 31,~~June 30, 2021 and 2020, ~~and 2019,~~ respectively, because their inclusion would have been anti-dilutive.


	June 30,	June 30,
	2021	2020
Options to purchase common stock	17,708,356	8,312,307
Warrants to purchase common stock	8,891,240	8,217,376
Series A preferred stock	—	3,066,700
Series B preferred stock	20,000,000	20,000,000
Convertible debentures	6,854,219	6,788,027
Total common stock equivalents	53,453,815	46,384,410

Three Months Ended
March 31,

2020 2019
Options to purchase common stock 5,812,307 6,173,418
Warrants to purchase common stock 8,217,376 21,572,181
Series A preferred stock 3,066,700 —
Series B preferred stock 20,000,000 —
Convertible debentures 6,670,602 5,570,999
Total common stock equivalent 43,766,985 33,316,598

Application of New Accounting Standards

In ~~August 2018,~~December 2019, the ~~Financial Accounting Standards Board (FASB)~~FASB issued ASU ~~No. 2018-13,~~2019-12, ~~Fair Value Measurement~~Income Taxes (Topic ~~820)~~740): Simplifying the Accounting for Income Taxes, which ~~modifies~~is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the ~~disclosures on fair value measurements by removing the requirement~~general principles in Topic 740 and also clarifies and amends existing guidance to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). The ASUimprove consistent application. This guidance is effective for ~~public entities~~fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company elected adoption of this standard on its condensed consolidated financial statements and related disclosures effective January 1, 2021.

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Recent Accounting Pronouncements

In September 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for fiscal years beginning after December 15, ~~2019. The~~2022. While the Company ~~has not historically had any transfers between Level 1 and Level 2 or assets or liabilities measured at fair value under Level 3. The Company adopted~~is currently evaluating the ~~standard effective January 1, 2020 with no material effect~~impact that the adoption of this guidance will have on its condensed consolidated financial ~~statements.~~

~~Recent Accounting Pronouncements~~

~~There are various updates recently issued, most of which represented technical corrections~~statements, it does not expect the adoption to ~~the accounting literature or application to specific industries and are not expected to a~~ have a material impact on its condensed consolidated financial statements.

In August 2020, the ~~Company’s~~FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock. As well as amend the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related EPS guidance. The ASU is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted for periods beginning after December 15, 2020. Adoption of the ASU can either be on a modified retrospective or full retrospective basis. The Company is currently evaluating the impact of this standard on its condensed consolidated financial ~~position, results of operations or cash flows.~~statements and related disclosures.

NOTE 3 – ~~INVENTORY~~BUSINESS COMBINATION

Business acquisition of EON Media Group

The ~~Company’s inventory~~Company obtained control of EON Media Group through two investments, which ASC 805 refers to as a “business combination achieved in stages.” On December 1, 2020, the Company acquired from Ithaca EMG Holdco LLC (Ithaca) 1,350 ordinary shares and 1,084 preference shares issued by EON Media Group Pte. Ltd (EON Media Group). The first stage of the transaction resulted in Company acquiring a 20% equity interest in EON Media Group, and was recorded as an equity method investment. The purchase price consideration for the acquired shares consisted of $750,000 in cash and 454,463 shares of the ~~following~~Company’s common stock valued at ~~March 31, 2020~~$863,480. For the six months ended June 30, 2021, the Company recognized equity method income of $1,551.

On April 27, 2021, the Company acquired from Far West Entertainment 3,650 ordinary shares, from a private individual 3,650 ordinary shares and ~~December 31, 2019:~~from Ithaca EMG Holdco LLC (Ithaca) 1,350 ordinary shares and 1,084 preference shares issued by EON Media Group Pte. Ltd (EON Media Group). The second stage of the transaction resulted in the Company acquiring the remaining 80% equity interest in EON Media Group. The purchase price consideration for the acquired shares consisted of $750,000 in cash and 2,003,435 shares of the Company’s common stock valued at $5,689,755.

March 31,
2020

December 31,
2019

Computers $ 28,213 $ 8,623
Hasp keys 5,760 2,240
Loop player 17,532 17,532
Total inventory $ 51,505 $ 28,395

~~NOTE 4 – PROPERTY AND EQUIPMENT, NET~~

The ~~Company’s property and equipment consisted~~allocation of the ~~following at March 31, 2020~~purchase consideration is as follows:


	April 27,
	2021
Fair value of shares issued	$	5,689,755
Cash consideration		750,000
Fair value of prior investment in EON Media Group		1,615,030
Total consideration paid	$	8,054,785

For the period ended June 30, 2021, the Company incurred transaction costs of $42,507, included in Selling, general and ~~December 31, 2019:~~

March 31,
2020

December 31,
2019

Equipment $ 456,610 $ 456,610
Software 53,450 53,450
Less: accumulated depreciation (485,046 ) (482,033 )
Total $ 25,014 $ 28,027

~~Depreciation~~administrative expense ~~charged to operations amounted to $3,013 and $2,269~~on the unaudited condensed consolidated statement of operations. Certain estimated values for the ~~three months ended March 31, 2020~~acquisition, including intangible assets, goodwill and ~~2019, respectively.~~deferred taxes are not yet finalized.

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The preliminary purchase price allocation is as follows:


	April 27,
	2021
Cash and cash equivalents	$	63
Goodwill		5,829,722
Brand name intangible asset		2,300,000
Current liabilities		(75,000)
Total purchase price allocation	$	8,054,785

The proforma disclosures were not materially different from the historical results of the Company.

NOTE 54 – GOODWILL AND OTHER INTANGIBLE ASSETS

As of ~~March 31, 2020~~June 30, 2021, and December 31, ~~2019,~~2020, the ~~Company had~~balance of goodwill ~~recorded~~was $6,412,808 and $583,086, respectively. On April 27, 2021, the EON Media Group acquisition value of ~~$583,086.~~goodwill was $5,754,785 (see Note 3). EON Media Group’s post-acquisition adjustments were $74,937.

~~Other~~The Company’s other intangible assets consisted of the following at ~~March 31, 2020~~June 30, 2021 and December 31, ~~2019:~~2020:


		June 30,		December 31,
	Useful life	2021		2020
Screenplay brand	not applicable	$	—	$	130,000
Customer relationships	nine years		1,012,000		1,012,000
Content library	two years		198,000		198,000
Brand name	twenty years		2,300,000		—
Technology	two years		2,671,233		2,671,233
Total intangible assets, gross			6,181,233		4,011,233

Less: Impairment of intangible assets			—		(130,000)
Less: accumulated amortization			(1,439,683)		(711,967)
Total intangible accumulated amortization			(1,439,683)		(841,967)
Total intangible assets, net		$	4,741,550	$	3,169,266

March 31,
2020

December 31,
2019

Software acquired as intellectual property $ — $ 6,350,000
Screenplay brand 130,000 130,000
Customer relationships 1,012,000 1,012,000
Content library 198,000 198,000
Less: Impairment of intangible assets acquired in 2019 — (6,350,000 )
Less: accumulated amortization (267,736 ) (211,445 )
Total $ 1,072,264 $ 1,128,555

Amortization expense charged to operations amounted to ~~$56,291~~$373,933 and ~~$52,861~~$56,292 respectively, for the three months ended ~~March 31,~~June 30, 2021 and 2020, and ~~2019, respectively.~~$727,715 and $112,583, respectively, for the six months ended June 30, 2021 and 2020.

NOTE 5 – LICENSE CONTENT ASSETS

License Content Assets

To stream video content to the users, the Company generally secures intellectual property rights to such content by obtaining licenses from, and paying royalties or other consideration to, rights holders or their agents. The licensing arrangements can be for a fixed fee, variable fee, or combination of both. The licensing arrangements specify the period when the content is available for streaming. The license content assets are two years in duration and include prepayments to distributors for customer subscription revenues, per play usage fees, and ad supported fees.

As of June 30, 2021, license content assets were $1,484,213 classified as $1,147,853 License content asset, net – current and $336,360 recorded as License content asset, net – noncurrent.

The Company recorded amortization expense of $610,397 and $0 for the periods ended June 30, 2021 and 2020, respectively, in cost of revenue, in the condensed consolidated statements of operations, related to capitalized license

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content assets. The amortization expense for the remaining six months ended December 31, 2021, is $627,353 and for year ended December 31, 2022, is $856,860.

License Content Liabilities

At June 30, 2021, the Company had $1,024,500 of obligations comprised of $1,024,500 in License content liability – current and $0 in License content liability – noncurrent on the condensed consolidated balance sheets. The expected timing of payments for these content obligations is $639,500 payable in 2021 and $385,000 payable by June 30, 2022 or thereafter.

NOTE 6 – LEASES

Operating leases

The Company has operating leases for office ~~space and office equipment and automobiles.~~space. Many leases include one or more options to renew, some of which include options to extend the leases for a long-term period, and some leases include options to terminate the leases within 30 days. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes.

Lease liability is summarized below:


	June 30,		December 31,
	2021		2020
Short term portion	$	161,662	$	145,271
Long term portion		119,178		208,625
Total lease liability	$	280,840	$	353,896

March 31,
2020 December 31,
2019
Total lease liability $ 460,485 $ 507,827
Less: short term portion (136,468 ) (147,458 )
Long term portion $ 324,017 $ 360,369

Maturity analysis under these lease agreements are as follows:



Six months ending December 31, 2021	$	84,390
2022		170,185
2023		53,233
Total undiscounted cash flows		307,808
Less: 10% Present value discount		(26,968)
Lease liability	$	280,840

Nine months ended December 31, 2020 $ 131,367
2021 180,420
2022 185,834
2023 37,584
Total undiscounted cash flows 535,205
Less: 10% Present value discount (74,720 )
Lease liability $ 460,485

Lease expense for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020 ~~and 2019~~ was comprised of the following:


	Six Months Ended
	June 30,
	2021		2020
Operating lease expense	$	88,888	$	88,888
Short-term lease expense		8,398		4,587
Total lease expense	$	97,286	$	93,475

Three Months Ended
March 31,

2020 2019
Operating lease expense $ 44,444 $ 71,891
Short-term lease expense 1,115 9,821
$ 45,559 $ 81,712

~~Operating lease~~Lease expense is included in selling, general and administration expenses in the condensed consolidated statement of operations.

For the six months ended June 30, 2021, cash payments against lease liabilities totaled $90,121, accretion on lease liability of $17,065.

For the ~~three~~six months ended ~~March 31,~~June 30, 2020, cash payments against lease liabilities totaled ~~$38,517,~~$87,976, accretion on lease liability of ~~$11,999~~$23,242 and non-cash transactions totaled $20,825 to recognize assumption of lease by a related party.

~~For the three months ended March 31, 2019, cash payments against lease liabilities totaled $70,708, accretion on lease liability~~Table of ~~$10,557 and non-cash transactions of $444,112 to bring on leases as part of the adoption of ASC 842 and an added lease during the period of $75,274.~~Contents

Weighted-average remaining lease term and discount rate for operating leases are as follows:


Weighted-average remaining lease term	1.69 years	~~2.93~~	~~years~~

Weighted-average discount rate	10	10	%

NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of ~~March 31, 2020~~June 30, 2021 and December 31, ~~2019:~~2020:


	June 30,		December 31,
	2021		2020
Accounts payable	$	422,484	$	683,845
Interest payable		43,482		59,818
Accrued liabilities		162,596		193,500
Payroll liabilities		19,940		27,113
Total accounts payable and accrued expenses	$	648,502	$	964,276

March 31,
2020

December 31,
2019

Accounts payable $ 263,533 $ 357,982
Interest payable 182,137 94,069
Accrued liabilities 377,663 566,696
Payroll liabilities 52,152 26,048
$ 875,485 $ 1,044,795

NOTE 8 – ~~LOANS~~NOTE PAYABLE

PPP loan round 1

On ~~December 18, 2019,~~May 10, 2021, the Company ~~entered to~~received a notification from the Small Business Association for the full forgiveness of the PPP loan of $573,500 received on April 27, 2020. The first round of PPP loans forgiven consisted of $573,500 principal and $5,986 accrued interest; are included in other income for the period ending June 30, 2021.

PPP loan round 2

On April 26, 2021, the Company received the proceeds from a loan ~~agreement with a related party for $1,000,000.~~in the amount of $486,638, pursuant to the Paycheck Protection Program of the CARES Act (“PPP”). The loan ~~provided an~~matures on April 19, 2026, and bears interest at a rate of ~~5% compounded annually and calculated on a 360-day basis. The principal and accrued unpaid interest will be due on June 30, 2020.~~1% per annum. The loan is ~~secured~~evidenced by a ~~secondary interest in all assets~~promissory note, dated as of ~~both Loop~~April 19, 2021, which contains customary events of default relating to, among other things, payment defaults and ~~ScreenPlay.~~

~~On February 5, 2020, the Company issued 200,000 shares~~breaches of ~~Series B convertible preferred stock for (i) $1,000,000 in cash (Note 12)~~representations and ~~(ii) the exchange of~~warranties. All or a $1,000,000 loan to the Company plus accrued interest of $6,594. The fair value of the common stock into which the Series B convertible preferred stock is convertible was $9,600,000 on the date of issuance. The Company applied the guidance in ASC 470-20.

~~The Company recognized an inducement expense equal to the excess of the allocated fair value of the Series B Convertible preferred stock and the carrying value~~portion of the loan ~~payable as~~may be forgiven by the U.S. Small Business Administration (the “SBA”) upon application by the Company beginning 8 weeks but not later than 24 weeks (“covered period”) after loan approval and upon documentation of expenditures in accordance with the ~~date~~SBA requirements. The loan may be prepaid by the ~~inducement offers were accepted.~~Company at any time prior to maturity with no prepayment penalties. Repayment begins 10 months after the covered period (any length between eight and 24 weeks) with payments to begin July 31, 2022. The ~~excess of the fair value of the Series B Convertible preferred stock over the carrying value~~current portion of the loan ~~payable was $3,793,406 which amount was included as an inducement~~is $0, assuming payments will begin on July 31, 2022. Principal payments are $0 in 2021, $57,330 in 2022, $127,295 in 2023, $128,566 in 2024, and $173,447 in 2025 and thereafter. Interest expense ~~in the statement of operations~~ for the ~~three months ended March 31, 2020.~~period ending June 30, 2021, is $960.

In the event the loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. While the Company intends to apply for the forgiveness of the loan, there is no assurance that the Company will obtain forgiveness of the loan in whole or in part. The Company intends to use the proceeds from the loan for qualifying expenses.

The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further requires the Company to consider its current business activity and its ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on its future adherence to the forgiveness criteria.

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NOTE 9 – CONVERTIBLE ~~NOTES~~DEBENTURES PAYABLE


Convertible debentures as of June 30, 2021:
				Unpaid	Contractual
		Net Carrying Value		Principal	Interest Rates		Contractual	Warrants
Related party convertible debentures:		Current	Long Term	Balance	Cash	PIK	Maturity Date	issued
$3,000,000 convertible debenture amended October 23, 2020	(1)	$ 599,456	$ 920,567	$ 2,980,855	10%		12/1/2023	3,550,709
$750,000 convertible debenture, December 1, 2020	(2)	-	216,781	750,000	4%	6%	12/1/2022	68,182
$800,000 convertible debenture, April 1, 2021	(2)	-	118,227	800,000	4%	6%	12/1/2022	72,727
$400,000 convertible debenture, May 1, 2021	(2)	-	41,451	400,000	4%	6%	12/1/2022	36,364
	(2)	-	20,475	400,000	4%	6%	12/1/2022	36,364
$400,000 convertible debenture, June 2, 2021		$ 599,456	$ 1,317,501	$ 5,330,855

Convertible debentures:
$287,000 convertible debenture amended October 22, 2020	(3)	$ 71,578	$ 123,383	$ 209,967	10%		12/1/2023
$400,000 convertible debenture converted January 8, 2021	(4)	-	-	-	11%		1/8/2021
$350,000 convertible debenture, January 12, 2021	(2)	-	85,974	350,000	4%	6%	12/1/2022	87,500
$250,000 convertible debenture, May 21, 2021	(2)	-	16,637	250,000	4%	6%	12/1/2022	22,727
Total convertible debentures, net		$ 71,578	$ 225,994	$ 809,967


Convertible debentures as of December 31, 2020:
				Unpaid	Contractual
		Net Carrying Value		Principal	Interest Rates		Contractual	Warrants
Related party convertible debentures:		Current	Long Term	Balance	Cash	PIK	Maturity Date	issued
$3,000,000 convertible debenture amended October 23, 2020	(1)	$ 279,705	$ 1,192,946	$ 3,232,235	10%		12/1/2023	3,550,709
$750,000 convertible debenture, December 1, 2020	(2)	-	30,822	750,000	4%	6%	12/1/2022	68,182
Total related party convertible debentures, net		$ 279,705	$ 1,223,768	$ 3,982,235

Convertible debentures:
$287,000 convertible debenture amended October 22, 2020	(3)	$ 67,800	$ 160,165	$ 246,044	10%		12/1/2023
$400,000 convertible debenture amended August 20, 2019	(4)	326,143	-	326,143	11%		1/8/2021
Total convertible debentures, net		$ 393,943	$ 160,165	$ 572,187

March 31,
2020

December 31,
2019

Convertible Debentures issued to related parties, amended on October 23, 2020, interest at 10% per annum, unpaid interest accrued at 18% per annum through October 23, 2020 amounting to $179,803 is paid by making a cash payment of $97,979 and increasing the principal amount of the convertible note by $81,824 on the date of this agreement. From October 23, 2020 through March 31, 2021, interest will be accrued at 12.5% per annum and payable monthly in arrears beginning November 1, 2020. Beginning April 1, 2021, the Company will pay equal monthly installments of principal and interest at 10% per annum through December 1, 2023 $ 3,000,000 $ 3,000,000

Convertible Debenture issued to a founder and former officer of the Company in conjunction with redemption of 20,000,000 shares of common stock, interest at 10% per annum, amended terms as of October 22, 2020 provided that the unpaid interest accrued through May 31, 2020 of $43,011 plus principal of $29,324 and interest of $11,490 that were due under the original agreement (described below) beginning June 1, 2020 to October 1, 2020 is paid on October 22, 2020. The November 1, 2020 payment per the amendment will be deferred until December 1, 2020 while the terms of the conversion are discussed further. If the convertible note is not converted into the Company’s common stock by November 30, 2020, then the terms of the original note will resume on December 1, 2020, if agreement is reached to convert by November 30, 2020, the remaining balance of the convertible debenture amounting to $257,676 will be converted to 429,459 shares of the Company’s common stock. This $287,000 convertible debenture is secured by 5,000,000 shares of the Company’s common stock owned by the Company’s CEO 287,000 287,000

Secured⁽¹⁾convertible debenture, interest at 11% per annum, accrued monthly and the outstanding principal and unpaid accrued interest is due January 8, 2021 326,143 326,143
Convertible debentures payable $ 3,613,143 $ 3,613,143
Less: debt discount associated with Convertible payables (2,234,137 ) (2,385,189 )
Total convertible debentures payable $ 1,379,006 $ 1,227,954

~~(1)~~

~~Secured by primary interest in all assets of both Loop and ScreenPlay.~~

~~Convertible debentures – related party $3,000,000~~

~~Original terms~~

~~On December 12, 2018, the Company issued $3,000,000 in~~1) Unsecured convertible debentures ~~which have a maturity date of December 1, 2023 (the “Maturity Date”). The debentures accrue~~(at $0.60 per common share) issued to related parties, amended October 23, 2020, interest ~~monthly~~ at ~~a rate of~~ 10% per annum ~~simple interest. Accrued~~beginning November 1, 2020, monthly payments of unpaid interest ~~became payable monthly~~accrued at 12.5% per annum will be paid in arrears through March 31, 2021, beginning February 1, 2019 through May 1, 2020. Any accrued unpaid interest outstanding at May 1, 2020 could be converted into shares or added to the face amount of the loan. Beginning June 1, 2020 through JanuaryApril 1, 2021, the Company ~~will make~~began paying equal monthly ~~installment of interest only payments. Beginning January 1, 2021, the Company will make monthly installment~~installments of principal and interest at 10% per annum through December 1, 2023. ~~At the option of the debenture holders, the~~The debentures are convertible at any time prior to the ~~Maturity Date~~maturity in whole or in parts into common shares of the Company at a price of $0.60 per common share.

The convertible debentures also provide that should the Company receive not less than $6,000,000 from the sale of its securities, it must either, at the discretion of the holders, make a $750,000 principal payment plus the balance of any accrued unpaid interest or convert that amount into the Company’s common stock. If the Company receives not less than $12,000,000 from the sale of its securities, the entire outstanding principal balance plus any accrued and unpaid interest must be either paid or converted in common stock.

~~In connection with the issuance of the convertible debentures, the~~ Company issued ~~27,032,208~~3,550,709 common share

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purchase warrants, with each warrant exercisable at ~~$0.001~~$0.86 for a period of 10 years. The Company evaluated the warrants in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging – Contracts in Entity’s Own Stock and determined that the underlying common stock is indexed to the Company’s common stock. The Company determined that the warrants did not meet the definition of a liability and therefore did not account for them as a separate derivative liability.

The allocation of the $3,000,000 in gross proceeds from issuance of convertible debentures based on the relative fair values resulted in an allocation of $2,387,687 to the warrants and $612,313 to the convertible debentures. The relative fair value of the warrants above was determined on the date of grant using the Black Scholes option-pricing model with the following parameters: (1) risk free interest rate of 2.00%; (2) expected life in years of 10.0; (3) expected stock volatility of 45.0%; and (4) expected dividend yield of 0%. In addition, because the effective conversion rate based on the $612,313 allocated to the convertible debentures was $0.08 per share which was less than the fair value of the Company’s stock price on the date of issuance, a beneficial conversion feature was present at the issuance date. The beneficial conversion feature totaled $612,313 and was recorded as a debt discount. The Company also recorded the allocated fair value of the warrants $2,387,687 as additional debt discount.

(2) 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 ~~total initial unamortized debt discount was $3,000,000 and is amortized to interest expense using effective interest method over the life of the convertible debentures.~~

~~As of March 31, 2020 and 2019, the amortized debt discount recorded as interest expenses was $149,507 and $147,864, respectively.~~

~~Settlement – October 31, 2019~~

~~The Company was not able to make the payments required~~Senior Secured Promissory Debentures under the ~~terms of~~offering accrue cash interest at 4% per annum and payment in kind (PIK) interest at 6% payable in the ~~convertible debentures and the holders filed suit~~Company’s common stock, determined on ~~July 11, 2019. The convertible debenture holders and the Company entered into~~ a ~~settlement agreement on October 31, 2019, and the lawsuit was dismissed as of October 31, 2019.~~

~~Pursuant to the settlement agreement the payment terms~~360-day basis. Cash interest is payable in advance for the ~~convertible debentures were amended~~period from the issue date to ~~provide for interest to be accrued from~~ November ~~1, 2019 through April 2020~~30, 2021, and at the sole discretion of the note holder to be paid either by common stock of the Company or added to the balance of the loan. The note holders elected to add the accrued interest to the balance of the loan. It further provided that beginningthen is payable six months in arrears on June 1, 2020, monthly payments of unpaid accrued interest will be made through December 2020 and beginning January 1, 2021, the Company will pay equal monthly installments of principal and interest through December 1, 2023 and any unpaid principal and interest outstanding will be immediately due and payable2022, then six months in arrears on December 1, ~~2023.~~

~~Also as part of the settlement agreement, the Company (i) issued 67,690~~2022. The accrued PIK interest is payable in shares of ~~Class B~~ common stock ~~to the convertible debenture holders for $30,000 cash; and (ii) issued 56,408 Class B common shares valued at $25,000 to the convertible debenture holders for the forgiveness of $5,221~~ in ~~liabilities owed by the Company, which resulted in a loss on settlement of obligations of $19,779 during the year ended December 31, 2019.~~

In addition, the settlement agreement further provided that the Company would be released from any liability for accrued unpaid interest and other convertible debentures costs from the date of the convertible debenturesan amount equal to the date of the settlement agreement. The Company was relieved of $192,557 of accrued interest as of October 31, 2019 and recorded a gain on settlement of obligations during the year ended December 31, 2019.

Additionally, the settlement agreement provided that the Company would merge the Class A common stock and Class B common stock into one class of common stock. On December 5, 2019, the Company merged Class A and Class B common stock.

On October 31, 2019, as part of the above mentioned settlement agreement, the Company issued 27,032,208 Class B common shares upon the exercise of warrants, with an exercise price of $0.001 per share, for a total value of $27,032. The exercise price was applied against the balance of accrued interest on the convertible debentures.

~~Second Amendment of terms~~

Subsequent to March 31, 2020, the Company did not make all of the payments due under the convertible loan agreement with the related party and entered into a second amendment of this convertible loan on October 23, 2020. The second amendment provides for payment to be made for the unpaid interest accrued at 18% per annum (default rate) through October 23, 2020 amounting to $179,803 by making a cash payment of $97,979 and increasing the principal amount of the convertible note by $81,824. The second amendment further provides that interest will accrue from October 23, 2020 to March 31, 2021 at 12.5% per annum and will be paid monthly in arrears beginning November 1, 2020. Beginning April 1, 2021, the Company will pay equal monthly installments of principal and interest computed at 10% per annum through December 1, 2023. The Company will preliminarily account for this amendment to the Note under ASC 470-50-40-10 as a debt extinguishment due to the present value of the cash flows under the new amendment terms is at least 10% different from the present value of the remaining cash flows of the current terms.

~~The following table presents the components of the convertible debenture as of March 31, 2020 and December 31, 2019:~~

March 31,
2020

December 31,
2019

Short term portion $ — $ —
Long term portion 3,000,000 3,000,000
Less: unamortized debt discount (2,211,391 ) (2,360,898 )
Balance, net $ 788,609 $ 639,102

~~Convertible debentures - $287,000~~

~~Original terms~~

On December 1, 2018, the Company entered into a redemption agreement with one of the former officers to repurchase 20,000,000 shares of Class A common stock. The terms of this agreement required that the Company issue a convertible debenture to this shareholder in the amount of ~~$287,000~~PIK Interest accrued as of such date, divided by the volume weighted average price (VWAP) of common stock during each trading day during the ten-trading day period ending one trading day prior to the PIK Interest Payment due dates of June 1, 2021, December 1, 2021, June 1, 2022, and ~~pay~~December 1, 2022. The debenture discount for each tranche was initially recorded as follows:

●

$750,000 December 1, 2020 debenture the beneficial conversion feature of $713,051 and the allocated fair value of the warrants of $36,949 were recorded as debenture discount.

●

$350,000 January 12, 2021 debenture the beneficial conversion feature of $306,346 and the allocated fair value of the warrants of $43,654 were recorded as debenture discount.

●

$800,000 April 1, 2021 debenture the beneficial conversion feature of $736,402 and the allocated fair value of the warrants of $63,598 were recorded as debenture discount.

●

$400,000 May 1, 2021 debenture the beneficial conversion feature of $366,972 and the allocated fair value of the warrants of $33,028 were recorded as debenture discount.

●

$250,000 May 21, 2021 debenture the beneficial conversion feature of $234,442 and the allocated fair value of the warrants of $15,558 were recorded as debenture discount.

●

$400,000 June 2, 2020 debenture the beneficial conversion feature of $367,893 and the allocated fair value of the warrants of $32,107 were recorded as debenture discount.

(3) Convertible debentures (at $0.60 per common share) issued to a former officer of the amount of accrued expenses owed to him of $134,000 in four quarterly payments beginning October 1, 2019. The first two quarterly payments totaled $67,000 were paid in January 2020 but the remaining $67,000 has not been paid. The convertible debenture originally provided forCompany, interest at 10% per annum, ~~interest to accrue through September 1, 2019, beginning~~amended as of October ~~1, 2019~~22, 2020, provides those monthly payments of ~~unpaid accrued interest will be made through May 1, 2020, beginning June 1, 2020, the Company will pay equal monthly installments of~~$7,939 including principal and interest ~~through~~are to be made beginning December 1, ~~2023.~~

2020 through its maturity date of December 1, 2023; secured by 5,000,000 shares of the Company’s common stock which are owned by the Company’s Chief Executive Officer. At the option of the debenture holder, the debenture ~~shall be~~is convertible at any time prior to December 1, 2023 in whole or in parts into common ~~shares~~stock of the Company at a price of $0.60 per common share. As the effective conversion rate based on the principal $287,000 was $0.60 per share which was less than ~~the fair value of~~ the Company’s stock price on the date of issuance, a beneficial conversion feature was present at the issuance date. The beneficial conversion feature totaled $30,996 and was recorded as a debt discount.

~~The discount is amortized to~~(4) Secured convertible debenture (primary interest ~~expense using effective~~in all Company assets), interest ~~method over~~at 11% per annum, accrued monthly and the ~~life of the convertible debentures. As of March 31, 2020~~outstanding principal and ~~2019, the amortized debt discount recorded as interest expenses was $1,545 and $1,528, respectively.~~

~~First Amendment~~

The Company did not make all of the payments due under the convertible loan agreement entered into with a founder and former officer of the Company and entered into a second agreement to modify the payment terms on October 22, 2020. At the date of this amendment, the Company owed unpaid accrued interest ~~through May 31, 2020 amounting to $43,011~~was due January 8, 2021. $326,143 total debenture and $50,213 of unpaid ~~principal~~accrued interest was converted into 1,003,618 shares of common stock on January 8, 2021. The lender received 1,003,618 shares of common stock from this conversion and ~~interest payments from June 1, 2020 to October 1, 2020 in the amount of $40,814 for a total of $83,825. In an effort to remove the default,~~ the Company ~~amended the terms~~recognized no gain or loss.

Table of the convertible note on October 22, 2020 to provide for the unpaid interest accrued through May 31, 2020 plus the unpaid principal and interest payments from June 1, 2020 to October 1, 2020 amounting to $83,825 to be paid on the date of this agreement. In addition, the amendment required that the Company pay on October 22, 2020, $28,587of the outstanding balance of accrued expenses due to the founder and former officer in the amount of $67,000 for a total payment of $112,412. The amendment further provides that the remaining balance of the $67,000 owed or $38,412 would be paid on March 31, 2021. Additionally, the amendment provides that the November 1, 2020 payment will be deferred to December 1, 2020 while the terms of the conversion are discussed further. If the convertible note is not converted into the Company’s common stock by November 30, 2020, then the terms of the original note will resume on December 1, 2020. If the convertible note of the founder and former officer is converted by November 30, 2020, the balance of $257,676 will convert into 429,460 shares of the Company’s stock based upon an exercise price of $0.60.Contents

The following table presents the ~~components~~interest expense related to the contractual interest coupon and the amortization of debt discounts on the convertible ~~debenture~~debentures:


		Three months ended June 30,				Six months ended June 30,
		2021		2020		2021		2020
Interest expense	$	142,066	$	93,001	$	274,463	$	189,387
Amortization of debt discounts		488,440		151,052		770,546		302,104
Total	$	630,506	$	244,053	$	1,045,009	$	491,491

Maturity analysis as of ~~March 31, 2020 and December 31, 2019:~~June 30, 2021 under total convertible debentures, net are as follows:


Six months remaining 2021	$	667,873
2022		4,202,270
2023		1,270,681
Convertible debentures payable, related and non related party		6,140,824
Less: Debt discount on convertible debentures payable		(3,926,294)
Total convertible debentures payable, related and non related party, net	$	2,214,530

March 31,
2020

December 31,
2019

Short term portion $ 287,000 $ —
Long term portion — 287,000
Less: unamortized debt discount (22,746 ) (24,291 )
Balance, net $ 264,254 $ 262,709

~~Convertible debentures - $326,143~~

~~Original terms~~

~~On July 12, 2019, the Company entered into a loan agreement with a lender for a loan amount up to $200,000. The loan provided an interest rate~~Table of 10% accrued monthly with principal and accrued unpaid interest due on January 8, 2021. The loan required the Company to pay a loan fee of 2% ($4,000) upon execution. The loan provides for a prepayment penalty of 4% of the amount prepaid plus all interest accrued to the date of the prepayment. The loan was secured by a primary interest in all assets of both Loop and ScreenPlay.Contents

~~Amendment 1~~

~~By August 20, 2019, the amount borrowed under the $200,000 loan agreement amounted to $252,473 and the loan agreement was amended to provide for an increase in the maximum loan amount to $400,000.~~

In addition, the loan was restructured as a convertible debenture. At the option of the debenture holder, the debenture is convertible at any time prior to the maturity date in whole or in parts into Class A common shares of the Company. The conversion price was deemed to be the lesser of $0.40 per common share or the offering price paid by unaffiliated investors for one share of the current merger target’s common stock, no par value under a planned private offering of such securities by the current merger target in connection with the proposed merger transaction with the Company. The proposed merger with merger target failed to close so the conversion price was deemed to be $0.40 per common share.

~~The Company evaluated the embedded conversion feature in accordance with ASC Topic No. 815 – 40,~~ ~~Derivatives and Hedging – Contracts in Entity’s Own Stock~~ and determined that the underlying common stock is indexed to the Company’s common stock. The Company determined that the embedded conversion feature did not meet the definition of a liability and therefore did not account for it as a separate derivative liability. The embedded conversion feature was fair valued at $146,678 using the Black Scholes Method and recorded as loss on extinguishment of debt and offset to additional paid-in capital. The Company also charged the additional loan fees of $6,473 to loss on extinguishment of debt.

The Company evaluated the embedded conversion feature as the effective conversion rate based on the principal $252,473 was $0.40 per share which was less than the fair value of the Company’s stock price on the date of issuance and determined that a beneficial conversion feature was present at the issuance date. The beneficial conversion feature totaled $29,967 and was recorded as a debt discount and offset to additional paid-in capital.

The amendment also provided that at the lender’s request, the Company will issue one share of its Class A common stock for every dollar loaned. The total amount borrowed under this loan as of December 31, 2019 is $326,143, the Company recorded the obligation to issue 326,143 Class A common shares with a value of $135,144 as Class A common stock subscribed but not yet issued and debt discount.

~~Amendment 2 – November 26, 2019~~

The Company changed its merger target to Interlink Plus, Inc. (Interlink). On November 26, 2019, the $400,000 convertible loan agreement was amended again to change the conversion price to the lesser of $0.25 per common share or the offering price paid by unaffiliated investors for one share of Interlink common stock.

As of November 26, 2019, the amortized debt discount recorded as interest expense was $23,448, and upon execution of Amendment 2, the Company wrote off the remaining unamortized debt discount of $141,663 as loss on extinguishment of debt.

Upon execution of Amendment 2, a new embedded conversion feature was re-calculated as $110,281 which was charged to additional paid-in capital. The difference of $36,397 was offset against loss on extinguishment of debt.

~~The following table presents the components of the convertible debenture as of March 31, 2020 and December 31, 2019:~~

March 31,
2020

December 31,
2019

Short term portion $ 326,143 $ —
Long term portion — 326,143
Total $ 326,143 $ 326,143

NOTE 10 – COMMITMENTS AND CONTINGENCIES

The Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. There are no ~~such~~ loss contingencies that are included in the financial statements as of ~~March 31, 2020.~~June 30, 2021.

NOTE 11 – RELATED PARTY TRANSACTIONS

Related parties are natural persons or other entities that have the ability, directly or indirectly, to control another party or exercise significant influence over the party making financial and operating decisions. Related parties include other parties that are subject to common control or that are subject to common significant influences.

The Company ~~has~~ borrowed funds for business operations from certain ~~stockholders~~shareholders through convertible ~~debt~~debenture agreements ~~that have~~and has remaining balances, including accrued interest amounting to ~~$3,124,932~~$5,370,729 and ~~$3,050,137~~$3,988,693 as of ~~March 31, 2020~~June 30, 2021, and December 31, ~~2019,~~2020, respectively. The Company incurred interest expense for these convertible notes in the amounts of ~~$74,795~~$125,251 and ~~$73,973~~$78,130 for the three months ended ~~March 31,~~June 30, 2021, and 2020, respectively, and ~~2019, respectively.~~

One of the above stockholders and convertible note holders also assumed the Company’s corporate apartment lease at the beginning of 2020 for their own personal use. The Company wrote off the remaining balance of the right of use asset and lease liability, both amounting to $20,825.

~~As part of the reverse merger with Interlink Plus, Inc. on February 5, 2020, the Company assumed a $180,000 debt to Interlink’s controlling stockholder who the Company was also indebted to~~ in the ~~amount~~amounts of ~~$1,000,000. The $1,000,000 was exchanged as part of his purchase of 200,000 shares of Series B preferred stock. The $180,000 debt was retired as part of~~$243,368 and $152,925 for the issuance to him of 2,666,667 warrants to purchase the Company’s common stock. The warrants were recorded at their fair value (see Note 13). Due to the transaction being with a related party the gain/loss is charged to additional paid in capitalsix months ended June 30, 2021 and ~~not to the statement of operations.~~2020, respectively.

NOTE 12 ~~– STOCKHOLDERS’~~–STOCKHOLDERS’ EQUITY

Convertible Preferred Stock

The Company is authorized to issue 16,666,667 shares of its $0.0001 par value preferred stock. As of March 31, 2020, and December 31, 2019, the Company had 30,667 and 0 shares of Series A convertible preferred stock issued and outstanding, respectively. As of March 31, 2020, and December 31, 2019, the Company had 200,000 and 0 shares of Series B convertible preferred stock issued and outstanding, respectively.

The Series A convertible preferred stock have a liquidation preference of $0.10 per share, have super voting rights of 100 votes per share, and each share of Series A may be converted into 100 shares of common stock.

The Series B Convertible Preferred Stock is convertible at any time at the discretion of the holder thereof into shares of common stock at a conversion rate of one hundred (100) shares of common stock for every one (1) share of Series B Convertible Preferred Stock. Furthermore, the holders of Series B Convertible Preferred Stock have the right to cast one hundred (100) votes for each one (1) share of Series B Convertible Preferred Stock held of record on all matters submitted to a vote of holders of the common stock, including the election of directors, and all other matters as required by law.

On January 31, 2020, the Company filed a certificate of designation with the Nevada Secretary of State and designated 3,333,334 shares of Series B Convertible Preferred Stock. The terms of the Series B Convertible Preferred Stock are substantially similar to those of the Series A Convertible Preferred Stock, except that in the event of the liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary, the holders of the Series B Convertible Preferred Stock then outstanding shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, an amount equal to $1.00 per share of Series B Convertible Preferred Stock before any payment shall be made or any assets distributed to the holders of common stock or Series A Convertible Preferred Stock.

~~The Series B Convertible Preferred Stock is~~In May, shareholders owning 30,667 shares of series A convertible ~~at any time at~~preferred stock converted the ~~discretion~~shares into 3,066,700 shares of the ~~holder thereof into~~Company’s common stock. As a result, the Company had 0 shares of ~~common~~Series A convertible preferred stock ~~at a conversion rate~~outstanding as of ~~one hundred (100)~~June 30, 2021. As of December 31, 2020, the Company had 30,667 shares of ~~common~~Series A convertible preferred stock ~~for every one (1) share~~issued and outstanding.

As of June 30, 2021, and December 31, 2020, the Company had 200,000 and 200,000 shares of Series B ~~Convertible Preferred Stock. Furthermore, the holders~~convertible preferred stock issued and outstanding, respectively.

Table of ~~Series B Convertible Preferred Stock have the right to cast one hundred (100) votes~~Contents

Change in Number of Authorized and Outstanding Shares

On June 8, 2020, a 1 for ~~each one (1) share of Series B Convertible Preferred Stock held of record on all matters submitted to a vote of holders~~1.5 reverse stock split of the Company’s common stock ~~including~~became effective. All share and per share information in the ~~election~~accompanying unaudited condensed consolidated financial statements and footnotes was retroactively adjusted for the effects of ~~directors, and~~the reverse split for all ~~other matters as required by law.~~periods presented.

The Company evaluated the features of Convertible Preferred Stock under ASC 480, and classified them as permanent because the Convertible Preferred stock is not being mandatorily or contingently redeemable at the shareholder’ option and the liquidation preference that exist does not fall within the guidance of ASR 268.

Common stock

The Company is authorized to issue 316,666,667 shares of its $0.0001 par value common stock. As of ~~March~~June 30, 2021 and December 31, 2020 ~~and December 31, 2019,~~, there were ~~112,131,578~~127,316,716 and ~~101,882,647,~~118,128,008, respectively, shares of common stock issued and ~~outstanding.~~outstanding

~~Three~~Six months ended ~~March 31, 2019~~June 30, 2021

~~During the three months ended March 31, 2019, the~~The Company issued an aggregate of ~~2,800,000 Class B Shares~~2,524,000 shares of its common stock for gross cash proceeds of $3,154,935. The Company recorded no offering costs.

The Company issued 497,429 shares of its common stock in satisfaction of a common stock subscription of $485,144.

The Company converted a convertible note plus accrued interest in the amount of $376,356 into 1,003,618 shares of its common stock.

The Company issued 2,003,435 shares of its common stock with a value of ~~$1,890,000 which were reserved~~$5,689,755 for ~~issuance as a~~the purchase of remaining 80% ownership in EON Media Group.

The Company issued 3,066,700 shares of its common stock ~~subscribed at December 31, 2018. These were~~in connection with the conversion of series A convertible preferred stock.

The Company issued 14,475 shares of its common stock for $41,978 payment in kind interest payable in the Company’s common stock.

The Company issued 79,051 shares of its common stock for consulting services ~~received during the year ended December 31, 2018.~~valued at $200,000.

~~During the three~~Six months ended ~~March 31, 2019, the Company issued an aggregate of 37,605 in satisfaction of common stock subscribed of $25,000.~~June 30, 2020

During the three months ended March 31, 2019, the Company issued 1,866,667 Class B Shares with a value of $1,240,960 in connection with a settlement with former employees upon the termination of their employment contracts.

~~Three months ended March 31, 2020~~

~~During the three months ended March 31, 2020, the~~The Company issued an aggregate of 1,040,000 shares of its common stock for gross cash proceeds of $390,000. The Company recorded no offering costs.

~~During the three months ended March 31, 2020, the~~The Company issued 40,000 shares of its common stock to satisfy common stock subscribed of $15,000.

~~During the three months ended March 31, 2020, the~~The Company issued 4,000,000 shares of its common stock for consulting services valued at $1,500,000.

~~During the three months ended March 31, 2020, the~~The Company issued 5,168,931 shares of its common stock and 30,667 shares of Preferred A shares as part of the merger with Interlink. The Company also assumed debt to a related party of $180,000 and accrued interest of $3,842 and charged $80,134 of legal expenses related to the reverse merger ~~charged~~ to additional paid in capital.

~~During the three months ended March 31, 2020, the~~The Company issued 200,000 shares of its Series B convertible preferred stock in exchange for (i) $1,000,000 in cash and (ii) cancellation of loan and accrued interest ~~forgiveness~~ of $1,006,594. The fair value of the common stock into which the Series B convertible preferred stock is convertible was $9,600,000 on the date of issuance. ~~The Company applied the guidance in ASC 470-20.~~

The allocated fair value of the Series B convertible preferred stock exceeded the $1,000,000 cash proceeds by $3,800,000 which was recorded by the Company as a deemed dividend.

~~During the three months ended March 31, 2020, the~~Table of Contents

The Company received $20,000 for common stock subscribed of 53,333 shares.

NOTE 13 – STOCK OPTIONS AND WARRANTS

Options

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company’s historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the ~~“simplified”~~"simplified" method, which is used for ~~“plain-vanilla”~~"plain-vanilla" options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.

The following table summarizes the stock option activity for the ~~three~~six months ended ~~March 31, 2020:~~June 30, 2021:

	Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2019		5,812,307	$	0.7		8.41	$	—

										Weighted		Weighted Average
										Average		Remaining	Aggregate
									Options	Exercise Price		Contractual Term	Intrinsic Value
Outstanding at December 31, 2020									8,312,307	$	0.76	8.03	$	20,397,450
Grants		—		—		—		—	9,520,216		1.27	9.43		12,678,074
Exercised		—		—		—		—	—		—	—		—
Expired		—		—		—		—	—		—	—		—
Forfeited		—		—		—		—	(124,167)		1.10	—		—
Outstanding at March 31, 2020		5,812,307	$	0.7		8.16	$	93,279
Exercisable at March 31, 2020		5,812,307	$	0.7		8.16	$	93,279
Outstanding at June 30, 2021									17,708,356	$	1.03	8.54	$	28,005,016
Exercisable at June 30, 2021									10,583,562	$	0.88	7.98	$	18,283,665

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of ~~$0.68~~$2.60 as of ~~March 31, 2020,~~June 30, 2021, which would have been received by the option holders had those option holders exercised their options as of that date.

The following table presents information related to stock options at June 30, 2021:


Options outstanding
		Weighted	Options
		average	exercisable
Exercise	Number of	remaining life	number of
price	options	in years	options
$0.86	1,148,372	5.17	1,148,372
0.66	4,663,935	7.34	4,663,935
0.89	2,500,000	8.96	1,504,000
0.57	300,000	9.67	300,000
1.10	8,046,049	9.37	2,700,588
2.84	450,000	9.83	250,000
2.75	600,000	9.85	16,667
Total	17,708,356	8.54	10,583,562

Stock-based compensation

The Company recognizes compensation expense for all stock options granted using the fair value-based method of accounting. During the six months ended June 30, 2021, the Company issued 9,520,216 options valued at $1.47 per option. The Company recorded stock-based compensation of $6,902,547 for the above options.

In March ~~31, 2020:~~2021, the Company awarded 16,045,216 options under its 2020 Equity Incentive Compensation Plan to certain employees and non-employees hired before March 5, 2021. Subsequently, the total number of options awarded

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was adjusted to 8,470,216. On April 27, 2021, the plan was approved by the Company’s shareholders and is fully effective and increased the underlying common stock of 14,600,000. Stock options cannot be exercised until nine months after the Company’s common stock is listed on a national exchange.

The Company calculated the fair value of options issued using the Black-Scholes option pricing model, with the following assumptions:

Options Outstanding
Weighted Options
Average Exercisable
Exercise Number of Remaining Life Number of
Price Options In Years Options

$ 0.86 1,148,372 6.53 1,148,372
$ 0.66 4,663,935 8.59 4,663,935
Total 5,812,307 8.16 5,812,307


	June 30, 2021

Weighted average fair value of options granted	$	1.47
Expected life		5.00 – 10.00 years
Risk-free interest rate		0.01 - 1.56	%
Expected volatility		50.00 - 58.65	%
Expected dividends yield		0	%
Forfeiture rate		0	%

The stock-based compensation expense related to option grants was $1,482,747 and $0 ~~and $27,898~~respectively for the three months ended ~~March 31,~~June 30, 2021, and 2020, and ~~2019, respectively.~~ $6,902,547 and $0 respectively for the six months ended June 30, 2021, and 2020.

Warrants

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock:

Warrants Outstanding						Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Remaining Contractual Life (Years)

Warrants outstanding												Warrants outstanding			Warrants exercisable
														Weighted				Weighted
														average				average
														remaining	Weighted			remaining
														contractual	average			contractual
													Number	life	exercise		Number	life
Exercise prices												Exercise prices	outstanding	(years)	price		exercisable	(years)
$	0.86		5,550,709		6.76	$	0.86		5,550,709		6.76	0.86	3,850,709	5.87	$	0.86	3,850,709	5.87
$	0.75		2,666,667		9.95		0.75		2,666,667		9.95
												0.38	2,000,000	5.44		0.38	2,000,000	5.44
												0.75	2,666,667	8.70		0.75	2,666,667	8.70
												2.75	323,864	1.42		2.75	323,864	1.42
												2.80	50,000	9.82		2.80	50,000	9.82

The following table summarizes the warrant activity for the ~~three~~six months ended ~~March 31, 2020:~~ June 30, 2021:


	Number of Shares		Weighted Average Exercise Price Per Share
Outstanding at December 31, 2019		5,550,709	$	0.86

						Weighted
						average
						exercise
					Number of	price per
					shares	share
Outstanding at December 31, 2020					8,585,558	$	0.73
Issued		2,666,667		0.75	305,682		2.76
Exercised		—		—	—		—
Expired		—		—	—		—
Outstanding at March 31, 2020		8,217,376	$	0.82
Outstanding at June 30, 2021					8,891,240	$	0.80

There was no intrinsic value for warrants as of June 30, 2021, and 2020, respectively.

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During ~~first quarter 2020,~~ the ~~Company assumed a related party note of $180,000 and associated accrued interest of $3,842 as part of the reverse merger with Interlink. On March 11, 2020,~~six months ended June 30, 2021, the Company issued ~~2,666,667~~110,227 warrants ~~valued at $702,219 to retire~~in conjunction with the ~~$180,000~~issues of senior secured convertible debentures in the total amount of $600,000 and recorded the allocated fair values of the warrants of $59,212 as additional debt discounts. Further, the Company issued 145,455 warrants in conjunction with the issues of related party senior secured convertible debentures in the total amount of $1,600,000 and ~~$5,563~~recorded the allocated fair values of ~~accrued liabilities.~~the related party warrants of $128,733 as additional related party debt discounts. Finally, the Company issued 50,000 warrants with a fair value of $82,000, as severance.

The Company calculated the fair value of ~~options~~warrants issued using the Black-Scholes option pricing model, with the following assumptions:


	June 30, 2021

Weighted average fair value of warrants granted	$	1.09
Expected life		1.75 - 10 years
Risk-free interest rate		0.15% to 1.58%
Expected volatility		57.30% to 61.43%
Expected dividends yield		0
Forfeiture rate		0

March 31, 2020
Weighted average fair value of options granted $ 0.2633
Expected life 10 years
Risk-free interest rate 0.82 %
Expected volatility 48.46 %
Expected dividends yield 0 %
Forfeiture rate 0 %

NOTE 14 – SUBSEQUENT EVENTS

~~Change in Number of Authorized and Outstanding Shares~~Securities private placement

On ~~June 8, 2020,~~July 16, 2021, the Company ~~filed~~offered, in a ~~Certificate~~private placement, the aggregate offering amount of ~~Change pursuant~~up to ~~NRS 78.209 (the “Certificate of Change”) with the Nevada Secretary of State to implement a reverse split of the Company’s authorized~~$10,000,000 for both 8,000,000 common stock and ~~outstanding shares of capital stock on a 1 to 1.5 basis (the “Reverse Split”). In connection with the Reverse Split, the number of shares of capital stock~~8,000,000 warrants, whereas the Company ~~shall have the authority to issue decreased from 500,000,000 to 333,333,334 shares,~~sells one share of common stock and ~~to correspondingly decrease the number~~one warrant excersiable at $2.75 for an aggregate purchase price of ~~issued and outstanding shares~~$1.25. As of ~~each class and series of capital stock. In accordance with and pursuant to the Reverse Split, the total number of shares of the class of capital stock designated as Common Stock that~~August 5, 2021, the Company ~~shall have authority to issue will be decreased~~raised $2,750,000 from ~~475,000,000 to 316,666,667 shares, and all issued and outstanding shares of Common Stock shall be correspondingly and proportionally decreased. In accordance with and pursuant to~~ the Reverse Split, the total number of shares of the class of capital stock designated as Preferred Stock that the Company shall have authority to issue will be decreased from 25,000,000 to 16,666,667 shares, and all issued and outstanding shares of Preferred Stock shall be correspondingly and proportionally decreased. In accordance with and pursuant to the Reverse Split, the total number of shares of the series of Preferred Stock designated as Series A Convertible Preferred Stock that the Company shall have authority to issue will be decreased from 1,000,000 to 666,667 shares, and all issued and outstanding shares of Series A Convertible Preferred Stock shall be correspondingly and proportionally decreased. In accordance with and pursuant to the Reverse Split, the total number of shares of the series of Preferred Stock designated as Series B Convertible Preferred Stock that the Company shall have authority to issue will be decreased from 5,000,000 to 3,333,334 shares, and all issued and outstanding shares of Series B Convertible Preferred Stock shall be correspondingly and proportionally decreased.offering.

~~In accordance with and pursuant to Nevada Revised Statutes (“~~~~NRS~~~~”) 78.207, the Reverse Split was undertaken by a resolution of the board of directors of the Company without obtaining the approval of the stockholders.~~

~~All share and per share amounts for the common stock have been retroactively restated to give effect to the reverse split.~~

~~Name Change in Connection with Merger~~Senior secured convertible promissory debentures

On ~~May 22,~~December 1, 2020, the Company entered into another Plan of Merger with its wholly owned subsidiary, Loop Media, Inc. Under the Plan of Merger, Loop Media, Inc. merged into the Company becoming one entity. In connection with the Merger, the Company changed its name to Loop Media, Inc. The Company was the surviving entityoffered, in the Merger, and as such is permitted under NRS 92A.180 to amend its Articles of Incorporation to change its name if the amendment is set forth in Articles of Merger filed with the Nevada Secretary of State.

~~Stock Option Plan~~

On June 15, 2020, the board of directors of the Company adopted the Loop Media, Inc. 2020 Equity Incentive Compensation Plan (the Plan). Awards that may be granted under the Plan include: (a) Incentive Stock Options; (b) Non-qualified Stock Options; (c) Stock Appreciation Rights; (d) Restricted Awards; (e) Performance Share Awards; (f) Cash Awards; and (g) Other Equity-Based Awards. The Plan allows a ~~total share reserve of no more than 12,000,000 shares of common stock for the grant of Awards. The Plan further provides that no more than 10,000,000 shares of Common Stock may be issued in~~private placement, the aggregate ~~pursuant to the exercise of Incentive Stock Options (the~~ ~~“ISO Limit”~~).

Under the Plan, stock option awards of 1,000,000 and 1,500,000 shares, respectively were granted to two key employees on June 15, 2020. The options are intended to be Incentive Stock Options up to the point the fair market value of the vested shares determined on the grant date exceed $100,000. The vested shares or portions of shares thereafter will be treated as Non-Qualified Stock Options. The vesting period for both awards begin on July 1, 2020. The award of 1,000,000 option shares will vest 500,000 shares on July 1, 2020 and the remaining 500,000 shares will vest on January 1, 2021. The award of 1,500,000 option shares will vest ratably each month over a 36-month period.

~~Subsequent Contractual Arrangements~~

On April 16, 2020, the Company’s wholly owned subsidiary, Loop Media, Inc. (Loop) entered into a Framework Digital Distribution Agreement with Sony Music Entertainment (“SME”) to digitally distribute audio-visual musical recordings that it owns or controls in agreed forms to consumers via certain approved distribution channels. This agreement requires Loop to pay royalties and make minimum guaranteed payments,or advances, and includes marketing commitments, advertising inventory, and financial and data reporting obligations. Rights to sound recordings granted pursuant to this agreement are expected to account for a significant part of its streams in the foreseeable future. This license agreement has a duration of two years, is not automatically renewable, and applies to the United States, Canada, and certain Latin American countries. The license agreement also allows for the record label to terminate the agreement in certain circumstances, including, for example, Loop’s failure to timely pay sums due within a certain period, a breach of material terms, and in some situations which could constitute a “change of control” of Loop. This agreement provides that SME has the right to audit Loop for compliance with the terms of the agreement. Further, it contains a “most favored nation” provision, which requires that certain material contract terms be at least as favorable as the terms agreed to or will agree with any other record label. Future minimum guarantee payments are material and represent a significant portion of Loop’s contractual obligations and commercial commitments.

~~Payroll Protection Program and Economic Injury Disaster Loan Grant~~

The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020 and provided for, among other things, the Payroll Protection Program (“PPP”). The CARES Act temporarily added the PPP Loan program to the U.S. Small Business Administration’s (“SBA”) 7(a) Loan Program and provides for the forgivenessoffering amount of up to ~~the full~~$3,000,000 of Senior Secured Promissory Debentures, with a minimum subscription amount of ~~qualifying loan plus accrued interest guaranteed under~~$250,000 and common stock warrants with an aggregate exercise price of $750,000 and aggregate exercisable warrant shares of 272,727 shares. In April 2021, the ~~program. Loop applied for and received on April 27, 2020, through a bank, $573,500 under this program. The loan provides for an annual interest rate~~Board of ~~1% and a term of two years from~~Directors increased the date the proceeds were received. Payments of principal and interest are deferred for the period up to the determination of the forgiveness amount by the SBA. The program further provides that the payment of certain qualified expenses from the proceeds received can be eligible for loan forgiveness. The qualified payments must consist of at least 60% for payroll costs and the remaining amount up to a maximum of 40% can be used for certain non-payroll related costs such as mortgage interest, rent and utilities. The bank that issued the loan will determine how much of the loan will be forgiven based upon the information provided by the Company along with evidence of such costs. The $573,500 has been accounted for as a liability on Loop’s balance sheet as of June 30, 2020. Any amount that is forgiven will be accounted for as other income at the time the forgiveness is determined. Any amount that is not forgiven will remain on the balance sheet as a long-term liability and accrued interest. The remaining balance will be repaid with interest over the remaining term of the loan.

The CARES Act also provided that businesses affected by the Coronavirus pandemic would be eligible to apply for a loan under the Economic Injury Disaster Loan (“EIDL”) Program of the SBA. However, a business can only apply for a loan under PPP or EIDL, not both. Loop applied for an EIDL loan as well but accepted the PPP Loan and therefore was no longer eligible to borrow under the EIDL Program. However, as part of the EIDL loan application process, Loop was able to request a $10,000 grant from the EIDL Program. The grant does not have to be repaid as a result of not getting the EIDL. However, the $10,000 grant will be reduced against theoffering amount of the ~~PPP loan qualifying~~Senior Secured Promissory Debentures to ~~be forgiven. The $10,000 EIDL grant has been recognized in Q2 2020.~~

~~COVID-19~~

~~The spread of a novel strain of coronavirus (COVID-19) around~~$3,100,000 and the ~~world in~~aggregate exercise price to $903,125 and the ~~first half of 2020 has caused significant volatility in U.S. and international markets. The Company experienced a 17% decline in revenues in the nine months ended September 30, 2020 as compared~~aggregate exercisable warrant shares to ~~the nine months ended September 30, 2019, which was directly related to business closures of key customers.~~

~~Share Purchase Agreement~~

328,409. The Company entered into a ~~Share Purchase Agreement dated August~~senior secured promissory debenture agreement with a related party under this offering on July 1, ~~2020 for~~2021, in the ~~private offer~~amount of $400,000. The related party received 36,364 warrants to ~~a limited number of accredited investors of up to $6,500,000 worth of restricted shares of~~purchase the Company’s common stock ofat $2.75 per share, in conjunction with the Company at an issue price of $1.25 per share. The offer is ongoing and will remain open until October 31, 2020, unless earlier terminated or extended for an additional thirty (30) days in the sole discretion of the Company. The Shares are subject to restriction on resales until that date that is 365 days following the relevant closing date for any individual investor. As of October 20, 2020, the Company had raised an aggregate of $2,950,000 and issued 2,360,000 shares under the Share Purchase Agreement, with all but 344,000 shares issued prior to October 1.promissory debenture.

~~Acquisition~~Convertible debenture conversion

On ~~October 13,~~July 1, 2020, ~~the Company acquired from SPKR INC.,~~ a ~~Delaware corporation (“Seller”), the Seller’s Website~~convertible debenture holder (see (3) in Note 9) converted principal of $216,156 and Internet Domain Name, Spkr.com (the “Website”) and a mobile application Seller developed (the “App”), available in the Apple Inc. IOS Store as Spkr: Curated Podcast Radio, and related assets (the Website, the App and all other assets associated with Seller’s audio network business that were acquired, the “Acquired Assets”) pursuant to an Asset Acquisition Agreement dated the same date (the “Purchase Agreement”) enteredaccrued interest of $1,750 into by and between the Company, Seller and PTK Investments, LLC, a Delaware limited liability company (dba PTK Capital), in its capacity as the Seller representative under the Purchase Agreement (the “Acquisition”). The purchase price for the Acquired Assets consisted of consideration of 1,369,863363,176 shares of ~~the Company’s~~ common stock, par value $0.0001 per share, (the “Shares”) valued at $3,000,000. The Shares were issued to the Seller on October 13, 2020. The Shares are subject to restriction on resales until that date that is one year following the closingstock.

Table of ~~the Acquisition, or, if sooner, the date that is 90 days after the Company’s securities begin trading on the NASDAQ which is binding on any holder receiving any of the Shares from Seller.~~Contents

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

STATEMENT ON FORWARD-LOOKING INFORMATION

This report on Form 10-Q contains certain forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management 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 foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.

These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs and risk 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 relevant 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 notes to the financial statements, which are included in this report.

Overview

Loop Media, Inc. ~~(f/k/a~~(the “Company” or “Loop” and formerly 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., a Delaware corporation (“Merger Sub”), ~~a Delaware corporation,~~ closed the Agreement and Plan of Merger (the “Merger Agreement”) with Loop Media, Inc.~~(“Loop”)~~, a Delaware ~~corporation.~~corporation (“Predecessor Loop”). Pursuant to the Merger Agreement, Merger Sub merged with and into Predecessor Loop with Predecessor 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 Predecessor Loop in exchange for 152,823,970 ~~(number of~~ shares ~~is pre-stock split amount, the post stock split amount would be 101,882,647 shares)~~ of the Company’s common stock at an exchange ratio of 1:1. Predecessor Loop was incorporated on May 18, ~~2015~~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.

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additional licenses and producing internally in our Loop Media Studios business division. This additional and diversified content offering is a large part of our business model going forward. We operate almost exclusively in the ~~Company’s two major~~United States but are looking at further overseas expansion, primarily in Latin America and Asia.

We are an early-stage media operating company, with limited historical revenue and negative cash flow from operations. Our revenue is generated by advertisers who pay for our ad inventory in order to have their advertisements viewed by the end users of our Ad-Supported Service and by business ~~segments: travel agency assistance services~~owners and ~~convention services (together, the “Business”). In consideration~~users who pay a subscription fee to access our Subscription Service without advertisements. Our revenue for the ~~assets~~fiscal year ended December 31, 2020, consists almost entirely of the Business, Buyer transferred to the Company 2,000,000 shares of its 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.

~~Loops owns 100% of the capital stock of ScreenPlay.~~revenue from our historic ScreenPlay business, which is a ~~combination of ScreenPlay, Inc. (“SPI”), a Washington corporation incorporated in 1991,~~subscription-based OOH focused business, with little to no advertising revenue and SPE, Inc. (“SPE”), a Washington corporation incorporated in 2008. ScreenPlay provides customized audiovisual environments that support integrated brand strategies for clients in the retail, hospitality,no consumer users, and which does not fully reflect revenues expected from our more recent product and Service offerings and business ~~services markets, and for online content providers.~~

~~On June 8, 2020, a 1 for 1.5 reverse stock split of the Company’s common stock became effective. All~~record increased revenue share ~~and per share information in the accompanying unaudited condensed consolidated financial statements and footnotes has been retroactively adjusted~~ for the ~~effects~~six months ended June 30, 2021, as our advertising business model has more recently been deployed and operating more fully.

Off-Balance Sheet Arrangements

We have no off balance sheet arrangements.

Recent Developments

Impact of ~~the reverse split for all periods presented.~~ COVID-19

~~Recent Developments~~

~~COVID-19~~

The spread of COVID-19 around the world is ~~affecting~~continuing to affect the United States and global economies and may affect our operations and those of third parties on which we rely, including by causing disruptions in staffing, order fulfillment, and demand for product. In addition, the COVID-19 pandemic may affect our revenue ~~significantly.~~significantly in 2021, as it had in 2020. Additionally, while the potential ongoing negative economic impact brought by, and the duration of, the COVID-19 pandemic is still difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce our ability to access capital, which could negatively impact our short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic in 2021 is highly uncertain and subject to change.

The Company has experienced a 17% decline in revenue in the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019, which was directly related to the impact our customers had from Covid-19 from business closures and reduced operations. We have implemented certain mitigation measures such as temporary salary reductions, staff reductions and other cost cutting activities.

As COVID-19 continues to evolve, the extent to which ~~the coronavirus impacts~~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 ~~the coronavirus~~COVID-19 or treat its impact. The Company continues to monitor the ongoing pandemic and, ~~particular,~~ the extent to which the continued spread of the virus adversely affects our customer base and therefore revenue. As the COVID-19 pandemic is complex and rapidly evolving, the Company’s plans as described above may change. At this point, the Company cannot reasonably estimate the duration and severity of ~~this~~the COVID-19 pandemic in 2021, which could have a material adverse impact on the business, results of operations, financial position, and cash flows.

~~First Amendment of terms of the convertible denture from a founder and former officer~~

The Company amended the terms of the convertible note on October 22, 2020 to provide for the unpaid interest accrued through May 31, 2020 plus the unpaid principal and interest payments from June 1, 2020 to October 1, 2020 amounting to $83,825 to be paid on the date of this agreement. In addition, the amendment required that the Company pay on October 22, 2020, $28,587 of the outstanding balance of accrued expenses due to the founder and former officer in the amount of $67,000 for a total payment of $112,412. The $112,412 was paid on October 22, 2020. The amendment further provides that the remaining balance of the $67,000 owed or $38,412 would be paid on March 31, 2021. Additionally, the amendment provides that the November 1, 2020 payment will be deferred to December 1, 2020 while the terms of the conversion are discussed further. If the convertible note is not converted into the Company’s common stock by November 30, 2020, then the terms of the original note will resume on December 1, 2020. If the convertible note of the founder and former officer is converted by November 30, 2020, the balance of $257,676 will convert into 429,459 shares of the Company’s stock based upon an exercise price of $0.60.

~~Second Amendment of terms of Convertible debentures with related parties~~

The Company entered into a second amendment of the convertible note on October 23, 2020. The second amendment provides for payment to be made for the unpaid interest accrued at 18% per annum (default rate) through October 23, 2020 amounting to $179,803 by making a cash payment of $97,979 and increasing the principal amount of the convertible note by $81,824. The second amendment further provides that interest will accrue from October 23, 2020 to March 31, 2021 at 12.5% per annum and will be paid monthly in arrears beginning November 1, 2020. Beginning April 1, 2021, the Company will pay equal monthly installments of principal and interest computed at 10% per annum through December 1, 2023.

~~Stock Option Plan~~

On June 15, 2020, the board of directors of Loop adopted the Loop Media, Inc. 2020 Equity Incentive Compensation Plan (the Plan). Awards that may be granted under the Plan include: (a) Incentive Stock Options; (b) Non-qualified Stock Options; (c) Stock Appreciation Rights; (d) Restricted Awards; (e) Performance Share Awards; (f) Cash Awards; and (g) Other Equity-Based Awards. The Plan allows a total share reserve of no more than 12,000,000 shares of common stock for the grant of Awards. The Plan further provides that no more than 10,000,000 shares of Common Stock may be issued in the aggregate pursuant to the exercise of Incentive Stock Options (the “ISO Limit”).

~~Subsequent Contractual Arrangements~~

On April 16, 2020, the Company entered into a license agreement with Sony Music Entertainment (“SME”) to digitally distribute audio-visual musical recordings that it owns or controls in agreed forms to consumers via certain approved distribution channels. This agreement requires the Company to pay royalties and make minimum guaranteed payments, and includes marketing commitments, advertising inventory, and financial and data reporting obligations. Rights to sound recordings granted pursuant to this agreement are expected to account for a significant part of its streams in the foreseeable future. This license agreement has a duration of two years, is not automatically renewable, and applies to the United States, Canada, and certain Latin American countries. The license agreement also allows for the record label to terminate the agreement in certain circumstances, including, for example, the Company’s failure to timely pay sums due within a certain period, a breach of material terms, and in some situations which could constitute a “change of control” of the Company. This agreement provides that SME has the right to audit the Company for compliance with the terms of the agreement. Further, it contains a “most favored nation” provision, which requires that certain material contract terms be at least as favorable as the terms agreed to or will agree with any other record label. Future minimum guarantee payments are material and represent a significant portion of the Company’s contractual obligations and commercial commitments.

~~Payroll Protection Program and Economic Injury Disaster Loan Grant~~

The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020 and provided for, among other things, the Payroll Protection Program (“PPP”). The CARES Act temporarily added the PPP Loan program to the U.S. Small Business Administration’s (“SBA”) 7(a) Loan Program and provides for the forgiveness of up to the full amount of qualifying loan plus accrued interest guaranteed under the program. Loop applied for and received on April 27, 2020, through a bank, $573,500 under this program. The loan provides for an annual interest rate of 1% and a term of two years from the date the proceeds were received. Payments of principal and interest are deferred for the period up to the determination of the forgiveness amount by the SBA. The program further provides that the payment of certain qualified expenses from the proceeds received can be eligible for loan forgiveness. The qualified payments must consist of at least 60% for payroll costs and the remaining amount up to a maximum of 40% can be used for certain non-payroll related costs such as mortgage interest, rent and utilities. The bank that issued the loan will determine how much of the loan will be forgiven based upon the information provided by the Company along with evidence of such costs. The $573,500 has been accounted for as a liability on Loop’s balance sheet as of June 30, 2020. Any amount that is forgiven will be accounted for as other income at the time the forgiveness is determined. Any amount that is not forgiven will remain on the balance sheet as a long-term liability and accrued interest. The remaining balance will be repaid with interest over the remaining term of the loan.

The CARES Act also provided that businesses affected by the Coronavirus pandemic would be eligible to apply for a loan under the Economic Injury Disaster Loan (“EIDL”) Program of the SBA. However, a business can only apply for a loan under PPP or EIDL, not both. Loop applied for an EIDL loan as well but accepted the PPP Loan and therefore was no longer eligible to borrow under the EIDL Program. However, as part of the EIDL loan application process, Loop was able to request a $10,000 grant from the EIDL Program. The grant does not have to be repaid as a result of not getting the EIDL. However, the $10,000 grant will be reduced against the amount of the PPP loan qualifying to be forgiven. The $10,000 EIDL grant has been recognized in Q2 2020.

~~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. The offer is ongoing and will remain open until October 31, 2020, unless earlier terminated or extended for an additional thirty (30) days in the sole discretion of the Company. The Shares are subject to restriction on resales until that date that is 365 days following the relevant closing date for any individual investor. As of October 20, 2020 the Company had raised an aggregate of $2,950,000 and issued 2,360,000 shares under the Share Purchase Agreement, with all but 344,000 shares issued prior to October 1.

~~Acquisition~~

On October 13, 2020, the Company acquired from SPKR INC., a Delaware corporation (“Seller”), the Seller’s Website and Internet Domain Name, Spkr.com (the “Website”) and a mobile application Seller developed (the “App”), available in the Apple Inc. IOS Store as Spkr: Curated Podcast Radio, and related assets (the Website, the App and all other assets associated with Seller’s audio network business that were acquired, the “Acquired Assets”) pursuant to an Asset Acquisition Agreement dated the same date (the “Purchase Agreement”) entered into by and between the Company, Seller and PTK Investments, LLC, a Delaware limited liability company (dba PTK Capital), in its capacity as the Seller representative under the Purchase Agreement (the “Acquisition”). The purchase price for the Acquired Assets consisted of consideration of 1,369,863 shares of the Company’s common stock, par value $0.0001 per share, (the “Shares”) valued at $3,000,000. The Shares were issued to the Seller on October 13, 2020. The Shares are subject to restriction on resales until that date that is one year following the closing of the Acquisition, or, if sooner, the date that is 90 days after the Company’s securities begin trading on the NASDAQ which is binding on any holder receiving any of the Shares from Seller.

~~Off Balance sheet arrangements~~

~~We have no off balance sheet arrangements.~~

Critical Accounting Policies and Use of Estimates

Use of ~~Estimates~~estimates and ~~Assumptions~~assumptions

The preparation of the ~~unaudited condensed consolidated~~ financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include assumptions used in the fair value of stock-based compensation, the fair value of other equity and debt instruments, right-of-use assets, lease liabilities, and allowance for doubtful accounts.

~~Revenue Recognition~~

~~Accounting Standards Update (“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 made no adjustments to its previously-reported total revenues, as those periods continue to be presented in accordance with its historical accounting practices under Topic 605, ~~Revenue Recognition~~.

●

~~executed contracts with the Company’s customers that it believes are legally enforceable;~~

●

~~identification of performance obligations in the respective contract;~~

●

~~determination of the transaction price for each performance obligation in the respective contract;~~

●

~~allocation the transaction price to each performance obligation; and~~

●

~~recognition of revenue only when the Company satisfies each performance obligation.~~

~~Performance Obligations and Significant Judgments~~

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

●

~~Delivery of streaming services including content encoding and hosting. The Company recognizes revenue over the term of the service based on bandwidth usage.~~

●

~~Delivery of subscription content services in customized formats. The Company recognizes revenue over the term of the service.~~

●

~~Delivery of hardware for ongoing subscription content delivery through software. The Company recognizes revenue at the point of hardware delivery.~~

~~Cost of revenue~~

~~Stock Based Compensation~~

~~Share-based compensation issued to employees is measured at the grant date, based on the fair~~Fair value of the award, and is recognized as an expense over the requisite service 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 considered to be 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.

~~Leases~~measurements

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 lease liabilities represent an obligation to make lease payments arising from the lease. ROU~~fair value of its assets and ~~lease~~ 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

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measurements) and the lowest priority to valuations based upon unobservable inputs that are ~~recognized at~~significant to the ~~lease commencement date based on the present value~~valuation (Level 3 measurements). The three levels of ~~lease payments over the lease term. As most~~valuation hierarchy are defined as follows:


	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets;


	●	Level 2 inputs to the valuation methodology included quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and


	●	Level 3 inputs to the valuation methodology is one or more unobservable inputs which are significant to the fair value measurement.

The carrying amount of the Company’s ~~leases do~~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 ~~provide an implicit interest rate,~~have financial assets or liabilities that are required under the ~~Company uses its incremental borrowing rate based on the information available~~US GAAP to be measured at ~~commencement date in determining the present~~fair value of lease payments. The ROU asset 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 terminate 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.~~recurring basis. The Company has ~~lease agreements which require payments for lease and non-lease components and has~~not elected to ~~account~~use fair value measurement option for ~~these as a single lease component.~~

~~Results of Operations~~

~~For the Three Months Ended March 31, 2020 compared to the Three Months Ended March 31, 2019~~

Three months ended March 31, 2020 2019 $ variance % variance

Content and streaming services $ 383,541 $ 433,272 $ (49,731 ) -11 %
Content subscription services 411,029 364,335 46,694 13 %
Hardware for ongoing subscription content 31,818 52,703 (20,885 ) -40 %
Total revenue 826,388 850,310 (23,922 ) -3 %
Cost of revenue 212,259 205,321 6,938 3 %
Gross Profit 614,129 644,989 (30,860 ) -5 %
Operating expenses:
Selling, general administration 3,058,653 2,959,559 99,094 3 %
Total Operating expenses 3,058,653 2,959,559 99,094 3 %
Loss from Operations (2,444,524 ) (2,314,570 ) (129,954 ) 6 %
Other income (expense)
Interest income 1,284 1,245 39 3 %
Interest expense (247,441 ) (237,641 ) (9,800 ) 4 %
Gain on settlement of obligations — 6,416 (6,416 ) -100 %
Inducement expense
(3,793,406 ) — (3,793,406 ) 100 %
Total Other income (expense) (4,039,563 ) (229,980 ) (3,809,583 ) 1656 %
Provision for income taxes — — — 0 %
Net loss $ (6,484,087 ) $ (2,544,550 ) $ (3,939,537 ) 155 %

~~Revenues~~any assets or liabilities for which fair value measurement is not presently required.

The Company ~~experienced a 3% decline in revenue~~records assets and liabilities at fair value on nonrecurring basis as required by the US GAAP. Assets recognized or disclosed at fair value in the ~~first quarter~~condensed consolidated financial statements on a nonrecurring basis include items such as property and equipment, operating lease assets, goodwill, and other intangible assets, which are measured at fair value if determined to be impaired.

License Content Assets

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 ~~2020 versus 2019. This decrease is~~Films and License Agreements for Program Materials, on a ~~primarily a result~~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 reasonably estimable, no asset or liability is recorded, and licensing costs are expenses as incurred. The Company ~~billing its customers for~~amortizes licensed content assets into cost of revenue, using the straight-line method over the contractual period of availability. The liability is paid in accordance with the contractual terms of the arrangement.

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Results of Operations

For the three months ended June 30, 2021 compared to the three months ended June 30, 2020


Three months ended June 30,	2021		2020		$ variance		% variance

Content and streaming services	$	719,458	$	376,216	$	343,242	91	%
Content subscription services		409,984		234,212		175,772	75	%
Hardware for ongoing subscription content		31,351		25,312		6,039	24	%
Total revenue		1,160,793		635,740		525,053	83	%

Cost of revenue		763,359		172,661		590,698	342	%

Gross Profit		397,434		463,079		(65,645)	(14)	%

Operating expenses:
Selling, general and administration		4,269,169		1,638,038		2,631,131	161	%
Total Operating expenses		4,269,169		1,638,038		2,631,131	161	%

Loss from Operations		(3,871,735)		(1,174,959)		(2,696,776)	230	%

Other income (expense):
Interest income		—		1,175		(1,175)	(100)	%
Interest expense		(632,094)		(245,104)		(386,990)	158	%
Other income		—		10,000		(10,000)	(100)	%
Gain on extinguishment of debt		579,486		—		579,486	0	%

Total Other income (expense)		(52,608)		(233,929)		181,321	(78)	%

Provision for income taxes		—		—		—	0	%

Net loss	$	(3,924,343)	$	(1,408,888)	$	(2,515,455)	179	%

Revenues

Content and streaming services ~~based~~increased $343,242 and 91% quarter over quarter primarily due to advertising revenue share of $365,835. Content subscription services increased $175,772 and 75% quarter over quarter due to the introduction of Loop Stick revenues of $58,076 and the increase in ScreenCast subscription revenues of $140,813. In Q2 2021 two larger bar and gym chain customers resulted in increase in ScreenCast subscription revenues.

Cost of revenue

The increase of $590,698 and 342% in Cost of revenues was due to $308,590 in license content asset amortization, not amortized in previous year, in addition to $110,791 in licensing cost actuals, as well as Loop player inventory costs of sales of $134,286.

Total Operating Expenses

Total operating expenses increased $2,631,131 Q2 21 vs Q2 20 primarily due to personnel costs along with increased marketing activities.

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Other income and expenses

The interest expense increased $ (386,990) quarter over quarter due to the increase in convertible debenture borrowings period over period. The $579,486 gain on ~~bandwidth rather than subscriptions~~extinguishment is due to loan forgiveness on ~~demand and advertising on demand which is~~ the ~~direction~~first PPP loan (see Note 8).

For the ~~industry is moving to. Revenue~~six months ended June 30, 2021 compared to the six months ended June 30, 2020


Six months ended June 30,	2021		2020		$ variance		% variance

Content and streaming services	$	1,094,873	$	759,757	$	335,116	44	%
Content subscription services		800,274		645,241		155,033	24	%
Hardware for ongoing subscription content		59,689		57,130		2,559	4	%
Total revenue		1,954,836		1,462,128		492,708	34	%

Cost of revenue		1,487,937		384,920		1,103,017	287	%

Gross Profit		466,899		1,077,208		(610,309)	(57)	%

Operating expenses:
Selling, general and administration		12,175,453		4,696,691		7,478,762	159	%
Total Operating expenses		12,175,453		4,696,691		7,478,762	159	%

Loss from Operations		(11,708,554)		(3,619,483)		(8,089,071)	223	%

Income from equity investment		1,551		—		1,551	100	%
Interest income		5,657		2,459		3,198	130	%
Interest expense		(1,048,012)		(492,545)		(555,467)	113	%
Gain on extinguishment of debt		579,486		—		579,486	100	%
Other income		—		10,000		(10,000)	(100)	%
Inducement expense		—		(3,793,406)		3,793,406	(100)	%
Total Other income (expense)		(461,318)		(4,273,492)		3,812,174	(89)	%

Provision for income taxes		(1,586)		—		(1,586)	—	%

Net loss	$	(12,171,458)	$	(7,892,975)	$	(4,278,483)	54	%

Revenues

The Company’s revenue increased for the six months ended June 30, 2021, from ~~content~~June 30, 2020, by $492,708 or 34%. Content and streaming services ~~fell from $433,272 recognized in 2019 to $383,541 in 2020, or 11%. The Company is starting to move in this direction~~increased $335,116 and ~~recognized $27,500 in~~44% driven by advertising revenue share of $365,835. The year over year increase of $155,033 and 24% in ~~2020. The Company’s customer base for~~Content subscription services ~~includes restaurants, bars~~is due to Screencast subscription revenue increase due to bar and ~~to a lesser extent cruise ships~~gym customer revenue growth and casinos and demand for this service remains high. Revenue from this service has grown to $411,029 in 2020 from $364,335 in 2019, or 13%. Hardware sales has decreased from $52,703 recognized in 2019 to $31,818 in 2020 or 40%. This is to be expected as the Company transitions from providing the streaming service on on-site PC equipment to an internet-based service.Loop stick subscription revenues of $42,506 verses $0 year over year.

Cost of revenue

The cost of revenue increased ~~from $205,321 in 2019~~by 287% and $1,103,017 for the six months ended June 30, 2021, compared to ~~$212,259~~the same comparable period in 2020 ~~or 3%. The cost~~primarily due license content asset amortization, contractor costs, and inventory costs. License content amortization was $610,397 verses $0 over the same period last year. Actual licensing costs increased $104,648 as well. Loop player equipment inventory costs increased $193,156 versus $0 period over period due to the introduction of ~~production and content licensing increased by $55,662 from 2019 to 2020 as more emphasis has been placed on service delivery and production capabilities. Hosting expense fell from $51,702~~the product in ~~2019 to $24,778 in 2020 and the cost~~Q3 2020.

Table of ~~equipment sold for hardware sales decreased by $17,521 from 2019 to 2020.~~Contents

Total Operating Expenses

Total ~~operating~~Selling, General and Administration increased in the six months ended June 30, 2021, over the same comparable period in prior year by $7,478,762 or 159% because of significant increase in non-cash stock compensation expense ~~increased by $99,094 from 2019 to 2020.~~and personnel costs.

Other income and expenses

There was a decrease in other income and expense of $3,812,174. This was primarily due to ~~an increase in accounting fees by $201,411 for fees incurred for the audit~~recording of 2019 and 2018 which were not incurred in 2019. The Company recognized $231,142 more in share-based compensation in 2020 than 2019, primarily due to shares issued to contractors for services received and option expense recognized in 2019 and not in the first quarter of 2020. In 2019, the Company incurred acquisition expenses of $262,200 associated with the Company’s acquisition of ScreenPlay, Inc. and SPE, Inc. that was not recognized in 2020. Payroll cost decreased $67,054 from 2019 due to employee turnover. In addition, marketing expenses declined in the first quarter of 2020 by almost $4,635 from the same period in 2019.

~~Other income and expenses~~

There was an increase in other expense of $3,809,583 from 2019 to 2020. This occurred because in 2020 the Company had an additional $1,326,000 of loans outstanding in the first quarter 2020 than in the first quarter 2019 resulting in more interest expense of $9,800, gain recognized from the settlement of obligations of $6,416 in 2019 that did not occur in 2020 and an inducement expense of $3,793,406 related to the issuance ~~of 200,000 shares~~ of Series B convertible preferred stock for cash and induced debt ~~extinguishment.~~

~~Net Loss~~

extinguishment in 2020. Interest expense increased $ (555,467) and 113% due to additional debt raised from a related party. The ~~Company’s net loss in~~$579,486 gain on extinguishment is due to loan forgiveness on the first quarter of 2020 increased an additional $3,939,537 over the net loss for the same period in 2019 partly due to an increase in operating expenses of $99,094 for costs incurred to have an audit of the 2018 and 2019 financial statements performed, legal fees to raise capital and costs to subcontractors to develop the Company’s consumer based platform. Also impacting the net loss is the $3,809,583 increase in other income and expense as described above as well as the reduction in gross profit of $30,860.PPP loan (see Note 8).

Liquidity and Capital Resources

As of ~~March 31, 2020,~~June 30, 2021, the Company had cash of ~~approximately $1,174,000.~~$929,403. The following table provides a summary of the Company’s net cash flows from operating, investing, and financing activities.

	Three months ended
	March 31, 2020			March 31, 2019

							Six months ended
							June 30,		June 30,
							2021		2020
Net cash used in operating activities	$	(1,168,905	)	$	(992,348	)	$	(4,713,000)	$	(2,257,822)
Net cash used in investing activities		1,434			(11,342	)
Net cash provided by investing activities								(749,937)		(7,727)
Net cash provided by financing activities		1,329,866			(2,373,286	)		5,554,179		1,903,366
Change in cash		162,395			(3,376,976	)		91,242		(362,183)

Cash, beginning of period		1,011,445			3,838,661			838,161		1,011,445
Cash, end of period	$	1,173,840		$	461,685		$	929,403	$	649,262

The Company has historically sought and continues to seek financing from private sources to ~~move~~implement its business ~~plan forward.~~plans. In order to satisfy ~~the~~its financial commitments, the Company ~~had~~has historically relied ~~upon~~on private party financing, but that has inherent risks in terms of availability and adequacy of funding.

For the next twelve months, the Company anticipates that it will need to supplement its cash from revenues with additional ~~capital~~cash raised from equity investment or debt transactions to ensure that the Company will have adequate cash to ~~provide the~~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 ~~has~~may have to significantly ~~scale back,~~reduce, or discontinue its operations.

Net Cash Flow from Operating Activities

Net cash flows used in operating activities for the six months ended June 30, 2021, were $ (4,713,000) primarily due to the net loss of $ (12,171,458) offset by amortization of debt discount of $770,546, depreciation and amortization of $733,651, amortization of license contract assets of $610,397, amortization of right-of-use assets of $72,388, stock-based compensation expense of $6,902,547, bad debt expense of $146,637, and net decrease in operating assets and liabilities of $1,278,671.

~~There was approximately $176,000 more~~Net cash ~~spent~~flows used in operating activities for ~~operations~~the six months ended June 30, 2020, were $2,257,822 primarily due to the net loss of $7,892,975 offset by amortization of debt discount of $302,104, depreciation and amortization expense of $118,363, amortization of right-of-use assets of $66,165, stock-based compensation expense of $1,671,798, inducement expense of $3,793,406, and net decrease in ~~the first quarter~~operating assets and liabilities of 2020 than in the same period in 2019. This was necessary to pay for additional accounting fees associated with the merger into a public company and the requirements that come with that such as having an audit done for two years. Additional funds were also spent on building up the operations$316,683.

Table of ~~the Company to provide the necessary support to sustain the expected future revenue growth.~~Contents

Net Cash Flow from Investing Activities

~~Investing~~Net cash flows used in investing activities ~~consisted~~for the six months ended June 30, 2021, was $749,937 due to the cash portion of the ~~receiving payments on Note receivable in both 2020 and 2019. In 2019 the Company spent $12,719~~acquisition for ~~the purchase of equipment.~~EON Media Group.

Net Cash Flow from Financing Activities

Net cash provided by financing activities for the six months ended June 30, 2021, was $5,554,179 primarily due to $3,155,000 of cash proceeds received from issuance of common stock, repayment of $ (251,380) of a stockholder’s loan, and cash proceeds of $2,200,000 received for issuance of convertible promissory notes and $486,638 from the second PPP loan.

InNet cash provided by financing activities for the six months ended June 30, 2020, was $1,903,366 primarily due to $390,000 of cash proceeds received from issuance of common stock, cash payment of reverse merger costs of $80,134, cash proceeds of $20,000 received from issuance of common stock subscriptions, proceeds from the first ~~quarter~~PPP loan of ~~2020,~~$573,500, and cash proceeds of $1,000,000 received for preferred shares.

As a result of the above activities, the Company ~~raised $1,410,000~~recorded a net increase in ~~new~~cash of $91,242 for the six months ended June 30, 2021. The Company reported a cash balance of $929,403 at June 30, 2021.

Future Capital Requirements

Our current available cash and cash equivalents are insufficient to satisfy our liquidity requirements. Our capital requirements for the fiscal year ending December 31, 2021 will depend on numerous factors, including management’s evaluation of the timing of projects to ~~continue strengthening its~~pursue. Subject to our ability to generate revenues and cash flow from operations and ~~building its organization, less $80,134~~our ability to ~~pay for~~raise additional ~~legal fees and other~~capital (including through possible joint ventures and/or partnerships), we expect to incur substantial expenditures to carry out our business plan, as well as costs associated with ~~the merger into~~our capital raising efforts and being a public company. ~~In first quarter 2019, the company repaid stockholders loans in the amount of $348,286 and also paid down on the payable on acquisition in the amount of $2,025,000.~~

~~Going Concern~~Our plans to finance our operations include seeking equity and debt financing, alliances or other partnership agreements, or other business transactions, that would generate sufficient resources to ensure continuation of our operations.

AsThe sale of ~~March 31, 2020,~~additional equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through the ~~Company had cash~~issuance of ~~$1,173,840~~debt securities or preferred stock, these securities could have rights senior to those of our common stock and ~~an accumulated deficit~~could contain covenants that would restrict our operations. Any such required additional capital may not be available on reasonable terms, if at all. If we were unable to obtain additional financing, we may be required to reduce the scope of, ~~$28,815,933. During~~delay or eliminate some or all of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and results of operations.

Going Concern

The accompanying unaudited condensed financial statements have been prepared on a going concern basis. For the ~~three~~six months ended ~~March 31, 2020, the Company used~~June 30, 2021, we had a net loss of $ (12,171,458), had net cash used in operating activities of ~~$1,168,905. The Company has incurred net losses since inception.~~$(4,713,000), had working capital of $500,341, and accumulated deficit of $ (53,715,602). These ~~conditions~~matters raise substantial doubt about ~~the Company’s~~our ability to continue as a going ~~concern.~~

~~The Company’s primary source~~concern for a period of ~~operating funds since inception has been cash proceeds~~one year from ~~debt and equity financing. The~~the date of this filing. Our ability ~~of the Company~~ to continue as a going concern is dependent upon ~~its~~our ability to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due, to fund possible future acquisitions, and to generate ~~sufficient revenue and its ability to raise additional funds by way of a debt and equity financing.~~

~~Accordingly, the accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted~~profitable operations in the ~~United States~~future. Management plans to provide for our capital requirements by continuing to issue additional equity and debt securities. The outcome of ~~America (“GAAP”), which contemplate continuation of the Company as a going concern~~these matters cannot be predicted at this time and ~~the realization of assets and satisfaction of liabilities in the normal course of business.~~there are no assurances that, if achieved, we will have sufficient funds to execute our business plan or generate positive operating results. The ~~carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The unaudited condensed consolidated~~ financial statements do not include any ~~adjustment~~adjustments that might result from the outcome of this uncertainty.

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Recent Accounting Pronouncements

See the Company’s discussion under Note 2-Significant Accounting Policies in its financial statements.

Item 3.Quantitative and Qualitative Disclosure About Market ~~Risk~~

Risk.

Not required.

Item 4.Controls and ~~Procedures~~Procedures.

~~(i)~~

(i)Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of ~~March 31, 2020.~~June 30, 2021. Our disclosure controls and procedures are designed to provide reasonable assurance that information we are required to disclose in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosures, and is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.

Based on this evaluation, and as a result of the material weaknesses described below, our CEO and CFO have concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of ~~March 31, 2020.~~June 30, 2021. Notwithstanding the material weaknesses that ~~was~~were identified ~~as of December 31, 2019~~ and continued to exist at ~~March 31, 2020,~~June 30, 2021, management believes that the financial statements included in this report present fairly in all material respects our financial position, results of operations and cash flows for the period presented.

Material Weaknesses and Management’s Remediation Plan

A material weakness is a deficiency, or a combination of deficiencies, within the meaning of Public Company Accounting Oversight Board (“PCAOB”) Auditing Standard AS 2201, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with ~~U.S.~~US GAAP. The following material weaknesses in our internal control over financial reporting were identified in the normal course ~~as of December 31, 2019~~ and continued to exist as of ~~March 31, 2020:~~

June 30, 2021:

	●	~~The Company failed to maintain an effective control environment~~
	●	the Company’s management and the governance had insufficient oversight of the design and operating effectiveness of the Company’s disclosure controls and internal controls over financial reporting;

	●	~~The~~
	●	the Company failed to maintain effective controls over the period-end financial reporting process, including controls with respect to preparation and disclosure of provision for income taxes, ~~journal entries,~~valuation and ~~account reconciliations. Journal~~presentation of asset acquisition, content assets and liabilities, and investments; and

	●	the Company failed to maintain effective controls over journal entries, both recurring and nonrecurring, and account reconciliations and did not maintain proper segregation of duties. Journal entries were not always accompanied by sufficient supporting documentation and were not adequately reviewed and approved for validity, completeness and ~~accuracy;~~

●

~~The Company did not maintain proper segregation of duties.~~accuracy. In ~~certain~~most instances, persons responsible ~~to review transactions~~for reviewing journal entries and account reconciliations for validity, completeness and accuracy were also responsible for ~~preparation; and~~preparation.

●

The Company’s financial reporting team did not possess the requisite skill sets, knowledge, education or experience to prepare the financial statements and notes to the financial statements in accordance with US GAAP, or to review the financial statements and notes to the financial statements prepared by the external consultants and professionals to ensure accuracy and completeness.

We have concluded that these material weaknesses arose because, as previously a ~~previously~~ private company, we did not have the necessary business processes, systems, personnel, and related internal controls. ~~During the year ended December~~

31 ~~2019, we began~~

Table of Contents

We have conducted an evaluation of third parties to ~~undertake measures to address material weaknesses in~~assist us with formalizing our internal ~~controls. In particular, during March 2020, we~~control documentation and implementation of enhancements to our internal control over financial reporting and have recently engaged ~~an outside advisory and consulting~~a qualified firm ~~with expertise~~who has started work in ~~preparation of financial statements. We will continue to take steps to remediate these material weaknesses, including:~~July, 2021.

●

We intend to implement a procedure that ensures timely review of the financial statements, notes to our financial statements, and our Annual and Quarterly Reports on Forms 10-K and 10-Q by our chief executive officer, chief financial officer, and our board of directors, prior to filing with the SEC;

●

We intend to design and implement a formalized financial reporting process that includes balance sheet reconciliations, properly prepared, supported and reviewed journal entries, properly segregated duties, and properly completed and approved close checklist and calendar;

	●	~~We intend to hire additional experienced individuals to prepare and approve the consolidated financial statements and footnote disclosures in accordance with US GAAP;~~

●

~~We have relied and will continue to rely upon outside professionals to assist with our external reporting requirements to ensure timely filing of our required reports with the SEC; and~~

●

~~We intend to initiate efforts to ensure our employees understand the continued importance of internal controls and compliance with corporate policies and procedures.~~

~~(ii)~~

~~Changes in Internal Controls over Financial Reporting~~

(ii)Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management intends to implement certain remediation steps to address the material weaknesses described above. However, management has not yet implemented those remediation steps and expects remediation efforts to continue through the remainder of fiscal year ~~2020.~~2021.

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PART II — OTHER INFORMATION

Item 1.Legal ~~Proceedings.~~

Proceedings

We are currently not involved in any litigation that we believe could have a material 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 the knowledge of the executive officers of our Company, threatened against or affecting our Company, or our common stock, in which an adverse decision could have a material adverse effect.

Item 1A. Risk Factors

There have been no material changes to the factors disclosed in Item 1A. Risk ~~Factors.~~Factors in our Annual Report on Form 10-K for the year ended December 31, 2020.

We are not required to provide the information required by this Item due to the fact we are a “smaller reporting company.” However, as a result of the merger in February 2020, our business is different and we believe our new business, and ownership of our common stock, is subject to numerous risks and uncertainties, including, but not limited to, the following:

●

~~your ability to sell your common shares at or above the price you bought them for due to the failure of an active, liquid, and orderly market for our common shares to develop or be sustained;~~

●

~~our ability to attract prospective business and users and to retain existing business and users;~~

●

~~our dependence upon third-party licenses for video recordings and musical compositions;~~

●

~~our ability to comply with the many complex license agreements to which we are a party;~~

●

~~our ability to generate enough revenue to be profitable or to generate positive cash flow on a sustained basis;~~

●

~~our lack of control over the providers of our content and their effect on our access to music videos and other content;~~

●

~~our ability to accurately estimate the amounts payable under our license agreements;~~

●

~~the limitations on our operating flexibility due to the minimum guarantees required under certain of our license agreements;~~

●

~~our ability to obtain accurate and comprehensive information about music compositions in order to obtain necessary licenses or perform obligations under our existing license agreements;~~

●

~~potential breaches of our security systems; and~~

●

~~assertions by third parties of infringement or other violations by us of their intellectual property rights.~~

~~Item 2.~~

Item 2.Unregistered Sales of Equity Securities ~~and Use of Proceeds.~~

~~Between February 12~~ and ~~20, 2020,~~Use of Proceeds.

For the six months ended June 30, 2021, we sold and issued an aggregate of ~~860,000~~2,524,000 shares of our common stock ~~to a total of seven accredited investors~~ at a price of ~~$0.25~~$1.25 per share for an aggregate ~~purchase price~~cash proceeds of ~~$215,000.~~$3,155,000. 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.

The recipients of securities in each of these transactions acquired the securities for investment purposes only and not with a view to or for sale in connection with any distribution thereof and represented to us that they could bear the risks of the investment and could hold the securities for an indefinite period of time, and appropriate legends were affixed to the securities issued in these transactions. Each of the recipients of securities in these transactions represented to us in connection with their purchase that they were an accredited investor within the meaning of Rule 501 of Regulation D under the Securities Act.

As part of the reverse merger on February 5, 2020, we assumed a promissory note in favor of the Bruce A Cassidy 2013 Irrevocable Trust (the “Trust”) in the principal amount of $180,000, which accrued interest at 10% per annum and was payable in full on May 20, 2020 (the “Note”). On March 11, 2020, the Trust agreed to cancel the Note and we agreed to grant the Trust a warrant to purchase 2,666,667 shares of our common stock at an exercise price of $0.75 per share (the “Warrant”) in lieu of repaying any principal or accrued and unpaid interest due under the Note. As of March 11, 2020, the outstanding principal and accrued and unpaid interest owed under the Note was $185,563. The offer and grant of the Warrant 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. The Trust acquired the Warrant for investment purposes only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were affixed to the Warrant. Bruce Cassidy, a member of our board of directors, is the sole beneficiary, with his wife, under the Trust and is therefore an accredited investor within the meaning of Rule 501 of Regulation D under the Securities Act.

~~Item 3.~~

Item 3.Defaults Upon Senior Securities.

There were no material defaults regarding payments of principal and interest that exceeded 5% of the total assets of the Company.

~~Item 4.~~

Item 4.Mine Safety Disclosure.

Not applicable.

~~Item 5.~~

Item 5.Other Information.

None.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, as amended, the registrant has duly caused this quarterly report to be signed on its behalf by the undersigned thereunto duly authorized on ~~November 5, 2020.~~

August 9, 2021.


	Loop Media, Inc., a Nevada corporation
	(Registrant)

	~~By:~~
	By:	/s/ Jon Niermann
		Jon Niermann
		Chief Executive Officer
		(Principal Executive Officer)

	~~By:~~
	By:	/s/ James Cerna
		James Cerna
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

		~~Page No.~~
			Page No.
PART I — FINANCIAL INFORMATION
Item 1.	Financial ~~Statements~~Statements.		2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of ~~Operations~~Operations.		23 24
Item 3.	Quantitative and Qualitative Disclosure About Market ~~Risk~~Risk.		30 31
Item 4.	Controls and ~~Procedures~~Procedures.		30 31

PART II — OTHER INFORMATION
Item 1.	Legal ~~Proceedings~~Proceedings.		32 33
Item 1A.	Risk ~~Factors~~Factors.		32 33
Item 2.	Unregistered Sale of Equity Securities and Use of ~~Proceeds~~Proceeds.		32 33
Item 3	Defaults Upon Senior ~~Securities~~Securities.		33
Item 4.	Mine Safety ~~Disclosures~~Disclosures.		33
Item 5.	Other ~~Information~~Information.		33
Item 6.	~~Exhibits~~Exhibits.		34
Signature			35

	March 31, 2020			December 31, 2019
ASSETS	(Unaudited)
Current assets
Cash	$	1,173,840		$	1,011,445
Accounts receivable		568,470			673,971
Inventory		51,505			28,395
Prepaid expenses and other current assets		81,517			13,697
Prepaid income taxes		118,543			118,283
Operating lease right-of-use assets – current		137,817			155,868
Note receivable – current		10,215			10,215
Total current assets		2,141,907			2,011,874

Non-current assets
Deposit		19,831			19,831
Property and equipment, net		25,014			28,027
Operating lease right-of-use assets		311,339			347,076
Intangible assets, net		1,072,264			1,128,555
Note receivable		100,884			102,318
Goodwill		583,086			583,086
Total non-current assets		2,112,418			2,208,893
Total assets	$	4,254,325		$	4,220,767

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	875,485		$	1,044,795
Payable on acquisition		250,125			250,125
Loans payable		—			1,000,000
Deferred income		68,098			116,440
Convertible debt – current, net of unamortized discount of $22,746 and $0 as of March 31, 2020 and December 31, 2019, respectively		590,397			—
Lease liability - current		136,468			147,458
Total current liabilities		1,920,573			2,558,818

Non-current liabilities
Convertible debt – related party, net of unamortized discount of $2,211,391 and $2,360,898 as of March 31, 2020 and December 31, 2019, respectively		788,609			639,102
Convertible debt, net of unamortized discount of $0 and $24,291 as of March 31, 2020 and December 31, 2019, respectively		—			588,852
Lease liability		324,017			360,369
Total non-current liabilities		1,112,626			1,588,323
Total liabilities		3,033,199			4,147,141

Commitments and Contingencies (Note 10)

STOCKHOLDERS’ EQUITY
Series A Convertible Preferred stock, $0.0001 par value, 666,667 shares authorized, 30,667 and 0 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively		3			—
Series B Convertible Preferred stock, $0.0001 par value, 3,333,334 shares authorized, 200,000 and 0 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively		20			—
Common Stock, $0.0001 par value, 316,666,667 shares authorized, 112,131,578 and 101,882,647 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively		11,213			10,188
Common stock subscribed and not yet issued		155,144			150,144
Additional paid-in capital		33,664,085			26,038,546
Accumulated deficit		(32,609,339	)		(26,125,252	)
Total stockholders’ equity		1,221,126			73,626
Total liabilities and stockholders’ equity	$	4,254,325		$	4,220,767

	For the Three Months Ended March 31,
	2020			2019
Total revenue	$	826,388		$	850,310
Cost of revenue		212,259			205,321
Gross profit		614,129			644,989

Operating expenses
Selling, general and administrative		3,058,653			2,959,559
Total operating expenses		3,058,653			2,959,559

Loss from operations		(2,444,524	)		(2,314,570	)

Other income (expense)
Interest income		1,284			1,245
Interest expense		(247,441	)		(237,641	)
Gain on settlement of obligations		—			6,416
Inducement expense		(3,793,406	)		—
Total other expense		(4,039,563	)		(229,980	)

Income tax expense		—			—

Net loss		(6,484,087	)		(2,544,550	)

Deemed dividend		(3,800,000	)		-

Net loss attributable to common shareholders	$	(10,284,087	)	$	(2,544,550	)

Net loss per common share – basic and diluted	$	(0.09	)	$	(0.04	)
Weighted average number of common shares outstanding – basic and diluted		108,716,567			62,196,016

	Preferred Stock A				Preferred Stock B				Common Stock				Common Stock Subscribed					Additional Paid-in			Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Class A			Class B		Capital			Deficit			Total
BALANCES, January 1, 2020		—	$	—		—	$	—		101,882,647	$	10,188	$	150,144		$	—	$	26,038,546		$	(26,125,252	)	$	73,626
Shares issued for cash		—		—		—		—		1,040,000		104					—		389,896			—			390,000
Cash received for common stock subscribed		—		—		—		—		—		—		20,000			—		—			—			20,000
Common stock subscribed issued		—		—		—		—		40,000		4		(15,000	)		—		14,996			—			—
Shares issued for consulting fees		—		—		—		—		4,000,000		400		—			—		1,499,600			—			1,500,000
Shares issued in connection with reverse merger		30,667		3		—		—		5,168,931		517		—			—		(264,496	)		—			(263,976	)
Shares issued for cash		—				100,000		10		—		—		—			—		4,799,990			—			4,800,000
Shares issued for debt settlement		—		—		100,000		10		—		—		—			—		4,799,990			—			4,800,000
Warrants issued for settlement of debt		—		—		—		—		—		—		—			—		185,563			—			185,563
Deemed dividend																			(3,800,000	)		-			(3,800,000)
Net loss		—		—		—		—		—		—		—			—		—			(6,484,087	)		(6,484,087	)
BALANCES, March 31, 2020		30,667	$	3		200,000	$	20		112,131,578	$	11,213	$	155,144		$	—	$	33,664,085		$	(32,609,339	)	$	1,221,126

	Common Stock - Class A				Common Stock - Class B				Common Stock Subscribed						Additional Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Class A			Class B			Capital		Deficit			Total
BALANCES, January 1, 2019		50,907,418	$	5,091		9,755,304	$	976	$	92,000		$	1,890,000		$	15,191,173	$	(14,613,510	)	$	2,565,730
Common stock subscribed issued		37,605		4		—		—		(25,000	)		—			24,996		—			—
Shares issued for services		—		—		2,800,000		280		—			(1,890,000	)		1,889,720		—			—
Shares issued for employment settlement		—		—		1,866,667		187		—			—			1,240,773		—			1,240,960
Share-based compensation		—		—						—			—			27,898		—			27,898
Net loss		—		—						—			—			—		(2,544,550	)		(2,544,550	)
BALANCES, March 31, 2019		50,945,023	$	5,095		14,421,971	$	1,443	$	67,000		$	—		$	18,374,560	$	(17,158,060	)	$	1,290,038

	Three months ended March 31,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(6,484,087	)	$	(2,544,550	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount		151,052			149,392
Depreciation and amortization expense		59,304			55,130
Amortization of right-of-use asset		32,963			61,334
Stock-based compensation		1,500,000			1,268,858
Inducement expense		3,793,406			—
Changes in operating assets and liabilities:
Accounts receivable		105,501			69,249
Inventory		(23,110	)		(2,968	)
Prepaid expenses and other current assets		(67,820	)		2,813
Prepaid income tax		(260	)		(800	)
Accounts payable and accrued liabilities		(160,995	)		68,900
Income tax payable		—			(800	)
Operating lease liabilities		(26,517	)		(60,151	)
Deferred income		(48,342	)		(58,755	)
NET CASH USED IN OPERATING ACTIVITIES		(1,168,905	)		(992,348	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		—			(12,719	)
Collection of note receivable		1,434			1,377
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		1,434			(11,342	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares		390,000			—
Cash paid on payable on acquisition		—			(2,025,000	)
Repayment of stockholder loans		—			(348,286	)
Reverse merger costs charged to equity		(80,134	)		—
Proceeds received for common stock subscribed		20,000			—
Proceeds received for preferred shares		1,000,000			—
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,329,866			(2,373,286	)

Change in cash and cash equivalents		162,395			(3,376,976	)

Cash, beginning of period		1,011,445			3,838,661

Cash, end of period	$	1,173,840		$	461,685

SUPPLEMENTAL DISCLOSURES
Cash paid for interest	$	—		$	12,623
Cash paid for income taxes	$	4,360		$	5,712

NON-CASH TRANSACTIONS
Shares issued in connection with reverse merger	$	517		$	—
Preferred shares issued in connection with reverse merger	$	3		$	—
Preferred Shares issued for debt settlement	$	20		$	—
Debt and accrued interest exchanged as part of debt settlement	$	1,006,594		$	—
Assumption of lease by related party	$	20,825		$	—
Assumption of debt as part of reverse merger	$	183,842		$	—
Warrants issued to extinguish debt with related party	$	185,563		$	—
Right of use assets upon the adoption of ASC 842	$	—		$	444,112
Addition of new leases accounted for under ASC 842	$	—		$	75,274
Shares issued for common stock subscribed	$	15,000		$	1,915,000
Deemed dividend	$	3,800,000		$	—

	March 31, 2020		March 31, 2019
Content and streaming services	$	383,541	$	433,272
Content subscription services		411,029		364,335
Hardware for ongoing subscription content		31,818		52,703
Total revenue	$	826,388	$	850,310

	March 31, 2020		December 31, 2019
Computers	$	28,213	$	8,623
Hasp keys		5,760		2,240
Loop player		17,532		17,532
Total inventory	$	51,505	$	28,395

	March 31, 2020			December 31, 2019
Equipment	$	456,610		$	456,610
Software		53,450			53,450
Less: accumulated depreciation		(485,046	)		(482,033	)
Total	$	25,014		$	28,027

	March 31, 2020			December 31, 2019
Software acquired as intellectual property	$	—		$	6,350,000
Screenplay brand		130,000			130,000
Customer relationships		1,012,000			1,012,000
Content library		198,000			198,000
Less: Impairment of intangible assets acquired in 2019		—			(6,350,000	)
Less: accumulated amortization		(267,736	)		(211,445	)
Total	$	1,072,264		$	1,128,555

Nine months ended December 31, 2020	$	131,367
2021		180,420
2022		185,834
2023		37,584
Total undiscounted cash flows		535,205
Less: 10% Present value discount		(74,720	)
Lease liability	$	460,485

	March 31, 2020			December 31, 2019
Convertible Debentures issued to related parties, amended on October 23, 2020, interest at 10% per annum, unpaid interest accrued at 18% per annum through October 23, 2020 amounting to $179,803 is paid by making a cash payment of $97,979 and increasing the principal amount of the convertible note by $81,824 on the date of this agreement. From October 23, 2020 through March 31, 2021, interest will be accrued at 12.5% per annum and payable monthly in arrears beginning November 1, 2020. Beginning April 1, 2021, the Company will pay equal monthly installments of principal and interest at 10% per annum through December 1, 2023	$	3,000,000		$	3,000,000

Convertible Debenture issued to a founder and former officer of the Company in conjunction with redemption of 20,000,000 shares of common stock, interest at 10% per annum, amended terms as of October 22, 2020 provided that the unpaid interest accrued through May 31, 2020 of $43,011 plus principal of $29,324 and interest of $11,490 that were due under the original agreement (described below) beginning June 1, 2020 to October 1, 2020 is paid on October 22, 2020. The November 1, 2020 payment per the amendment will be deferred until December 1, 2020 while the terms of the conversion are discussed further. If the convertible note is not converted into the Company’s common stock by November 30, 2020, then the terms of the original note will resume on December 1, 2020, if agreement is reached to convert by November 30, 2020, the remaining balance of the convertible debenture amounting to $257,676 will be converted to 429,459 shares of the Company’s common stock. This $287,000 convertible debenture is secured by 5,000,000 shares of the Company’s common stock owned by the Company’s CEO		287,000			287,000

Secured⁽¹⁾convertible debenture, interest at 11% per annum, accrued monthly and the outstanding principal and unpaid accrued interest is due January 8, 2021		326,143			326,143
Convertible debentures payable	$	3,613,143		$	3,613,143
Less: debt discount associated with Convertible payables		(2,234,137	)		(2,385,189	)
Total convertible debentures payable	$	1,379,006		$	1,227,954

Options Outstanding
				Weighted		Options
				Average		Exercisable
Exercise		Number of		Remaining Life		Number of
Price		Options		In Years		Options

$	0.86		1,148,372		6.53	1,148,372
$	0.66		4,663,935		8.59	4,663,935
Total			5,812,307		8.16	5,812,307

	March 31, 2020
Weighted average fair value of options granted	$	0.2633
Expected life		10 years
Risk-free interest rate		0.82	%
Expected volatility		48.46	%
Expected dividends yield		0	%
Forfeiture rate		0	%

Three months ended March 31,	2020			2019			$ variance			% variance

Content and streaming services	$	383,541		$	433,272		$	(49,731	)		-11	%
Content subscription services		411,029			364,335			46,694			13	%
Hardware for ongoing subscription content		31,818			52,703			(20,885	)		-40	%
Total revenue		826,388			850,310			(23,922	)		-3	%
Cost of revenue		212,259			205,321			6,938			3	%
Gross Profit		614,129			644,989			(30,860	)		-5	%
Operating expenses:
Selling, general administration		3,058,653			2,959,559			99,094			3	%
Total Operating expenses		3,058,653			2,959,559			99,094			3	%
Loss from Operations		(2,444,524	)		(2,314,570	)		(129,954	)		6	%
Other income (expense)
Interest income		1,284			1,245			39			3	%
Interest expense		(247,441	)		(237,641	)		(9,800	)		4	%
Gain on settlement of obligations		—			6,416			(6,416	)		-100	%
Inducement expense		(3,793,406	)		—			(3,793,406	)		100	%
Total Other income (expense)		(4,039,563	)		(229,980	)		(3,809,583	)		1656	%
Provision for income taxes		—			—			—			0	%
Net loss	$	(6,484,087	)	$	(2,544,550	)	$	(3,939,537	)		155	%


Exhibit No.		Exhibit Description
~~2.1~~
10.1+		Employment Agreement by and ~~Plan of Merger with Interlink Plus, Inc., Loop Media Acquisition, Inc.~~between Jon Niermann and Loop Media, Inc. ~~dated January 3, 2020~~, effective March 1, 2021 (previously filed on ~~January 6, 2020~~April 15, 2021 as Exhibit ~~2.1~~10.4 of the ~~Current~~Company’s Annual Report on Form ~~8-K)~~10-K)
~~2.2~~
10.2		~~Purchase~~Employment Agreement by and between ~~Interlink Plus,~~Liam McCallum and Loop Media, Inc. ~~and Zixiao Chen, dated February 6, 2020~~, effective April 1, 2021 (previously filed on ~~February 7, 2020~~April 15, 2021 as Exhibit ~~2.2~~10.5 of the ~~Current~~Company’s Annual Report on Form ~~8-K)~~10-K)

~~2.3~~ 10.3		~~Plan of Merger between Interlink Plus, Inc. and Loop Media, Inc. dated May 22, 2020 (previously filed on June 11, 2020 as Exhibit 2.1 of the Current Report on Form 8-K)~~

~~2.4~~		~~Certificate of Ownership and Merger filed with the Delaware Secretary of State on June 8, 2020 (previously filed on June 11, 2020 as Exhibit 2.2 of the Current Report on Form 8-K)~~

~~2.5~~		~~Articles of Merger filed with the Nevada Secretary of State on June 9, 2020 (previously filed on June 11, 2020 as Exhibit 3.2 of the Current Report on Form 8-K)~~

~~3.1~~		~~Articles of Incorporation, as amended to date~~

~~3.2~~		~~Bylaws (previously filed on July 31, 2015 as Exhibit 3.3 of the Form S-1 Registration Statement)~~

~~4.1~~		~~Form of Warrant (previously filed on February 7, 2020 as Exhibit 4.1 of the Current Report on Form 8-K)~~

~~4.2~~		~~Form of First Amended and Restated Convertible Promissory Note (previously filed on February 7, 2020 as Exhibit 4.2 of the Current Report on Form 8-K)~~

~~10.1~~		~~Restricted Stock Purchase~~Employment Agreement by and between ~~Interlink Plus,~~Andy Schuon and Loop Media, Inc. ~~and Bruce A Cassidy 2013 Irrevocable Trust, dated February 5, 2020 (previously~~, effective April 1, 2021(previously filed on ~~February 7, 2020~~April 15, 2021 as Exhibit ~~10.1~~10.6 of the ~~Current~~Company’s Annual Report on Form ~~8-K)~~10-K)

~~10.2~~ 31.1

~~10.3~~

~~10.4~~

~~31.1~~		Certification of Principal Executive ~~Office~~Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350

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