Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Nov. 16, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | China Media Inc. | |
Entity Central Index Key | 1,434,674 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 39,750,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Consoldiated Balance Sheets (Un
Consoldiated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 106,126 | $ 75,612 |
Accounts receivable, net of allowance of $38,371 and $39,773 at September 30, 2015 and June 30, 2015, respectively | 1,265,384 | $ 1,320,457 |
Due from related party | 603,396 | |
Notes receivable | 4,472,363 | $ 4,667,012 |
Prepaid and other receivable | 222,583 | 227,683 |
Total current assets | 6,669,852 | 6,290,764 |
Fixed assets, net | 20,396 | 21,779 |
Film costs | 786,931 | 2,463,540 |
Total assets | 7,477,179 | 8,776,083 |
Current liabilities | ||
Accounts payable | 9,402 | 9,682 |
Accrued liabilities and other payable | $ 290,804 | 290,202 |
Due to related parties | 1,012,703 | |
Total current liabilities | $ 300,206 | 1,312,587 |
Total liabilities | 300,206 | 1,312,587 |
Stockholders' equity | ||
Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at September 30, 2015 and June 30, 2015, respectively | 398 | 398 |
Additional paid-in capital | 11,241,231 | 11,241,231 |
Accumulated other comprehensive income | 887,449 | 1,199,250 |
Accumulated deficit | (4,952,105) | (4,977,383) |
Total stockholders' equity | 7,176,973 | 7,463,496 |
Total liabilities and stockholders' equity | $ 7,477,179 | $ 8,776,083 |
Consoldiated Balance Sheets (U3
Consoldiated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 38,371 | $ 39,773 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 39,750,000 | 39,750,000 |
Common stock, shares outstanding | 39,750,000 | 39,750,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||
Revenues | ||
Cost of revenues | ||
Gross profit | ||
Selling, general and administrative | $ 36,538 | $ 42,309 |
Depreciation and amortization expense | 483 | 5,107 |
Total operating expenses | 37,021 | 47,416 |
Other income (expense) | ||
Interest income | $ 62,299 | 63,183 |
Interest expense | (15,865) | |
Net income before income taxes | $ 25,278 | $ (98) |
Income taxes | ||
Net income | $ 25,278 | $ (98) |
Net income (loss) | 25,278 | (98) |
Foreign currency translation gain | (311,801) | 2,153 |
Comprehensive income | $ (286,523) | $ 2,055 |
Net income per common share, basic and diluted | $ 0 | $ 0 |
Weighted average number of shares outstanding-basic and diluted | 39,750,000 | 39,750,000 |
Consoldiated Statements of Cash
Consoldiated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS OPERATING ACTIVITIES | ||
Net loss | $ 25,278 | $ (98) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Imputed interest | 15,865 | |
Amortization expense | 3,248 | |
Depreciation expense | $ 483 | $ 1,859 |
Changes in operating assets and liabilities: | ||
Due from related party | (799,386) | |
Prepaid and other receivable | 4,466 | $ (63,244) |
Accrued liabilities and other payable | 12,807 | (96,355) |
Net change in film costs | 1,598,772 | (1,624,009) |
Net cash used in operating activities | $ 842,420 | (1,762,734) |
CASH FLOW INVESTING ACTIVITIES | ||
Loans made to others | (487,203) | |
Collection of notes receivable | 1,786,410 | |
Net cash provided by investing activities | $ 1,299,207 | |
CASH FLOW FINANCING ACTIVITIES | ||
Repayments to related parties | $ (799,386) | |
Net cash provided by (used in) financing activities | (799,386) | |
Effect of exchange rate changes on cash | (12,520) | $ (132) |
NET CHANGE IN CASH | 30,514 | (463,659) |
CASH AT BEGINNING OF THE YEAR | 75,612 | 633,246 |
CASH AT END OF THE YEAR | $ 106,126 | $ 169,587 |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | ||
Income taxes paid | $ 106,906 |
Description of Business
Description of Business | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | NOTE 1. Description of Business China Media Inc. (the Company, China Media) was incorporated in the State of Nevada. The Company does not conduct any substantive operations of its own, rather, it conducts its primary business operations through Vallant Pictures Entertainment Co., Ltd., its wholly owned subsidiary incorporated under the laws of the British Virgin Islands, which in turn, conducts its business through Xian TV Media Co. Ltd. (XiAn TV). Effective control over XiAn Media was transferred to the Company through the series of contractual arrangements without transferring legal ownership in XiAn Media. As a result of these contractual arrangements, the Company maintained the ability to approve decisions made by XiAn Media and was entitled to substantially all of the economic benefits of XiAn Media. XiAn TV was incorporated in XiAn, ShaanXi Province, Peoples Republic of China (PRC) and is in the business of producing and developing television programming for the Chinese market. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited interim consolidated financial statements of China Media, Inc. (We or the Company), have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Companys annual financial statements for the year ended June 30, 2015 contained in the Company's Form 10-K field on September 25, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2015 included in this document have been omitted. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, estimates of product sales that will be returned and the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Companys financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Companys financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 3. Related Party Transactions Mr. Dean Li, the President and Chief Executive Office of the Company., had advanced $1,012,703 to the Company at June 30, 2015 and the loan was fully repaid by the Company in July 2015. The loans borrowed from Mr. Dean Li are non-secured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 5.94-6.56% with reference to one-year loan. On June 16, 2014, the Company and Hangzhou Yanse Advertising Production Company (Hangzhou Yanse) entered into an agreement in production and distribution of the film Dan Ta. In July 2015, the cooperation between the Company and Hangzhou Yanse was terminated. Hangzhou Yanse refunded RMB 10 million (approximately $1,643,466) to the Company for part of its investments on July 30, 2015. The remaining investment of RMB 5 million (approximately $791,402) was subsequently made to Mr. Dean Li on behalf of the Company, which was presented as Due from related party as of September 30, 2015, and received by the Company as of the filing date. |
Film Costs
Film Costs | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Film Costs | NOTE 4. Film Costs Film costs consist of the following: September 30, 2015 June 30, 2015 Completed and not released: In development - Film $ 786,931 $ 2,463,540 Film costs $ 786,931 $ 2,463,540 The decrease of film costs is primarily due to the termination of film Dan Ta that was discussed in Note 3. |
Notes Receivable
Notes Receivable | 3 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Notes Receivable | NOTE 5. Notes Receivable On March 20, 2013, the Company lent RMB 946,500 (approximately $155,000) in the form of an interest free loan to China Fengde Movie and TV Copyright Agency (Zhongshi Fengde), one of the Companys business partners. The Company collected RMB 530,000 (approximately $86,305) as of June 30, 2014. No repayment was collected during the year ended June 30, 2015 and the three months ended September 30, 2015. The outstanding balance was RMB 416,500 (approximately $65, 551) as of September 30, 2015. On June 13, 2014, the Company lent RMB 18M (approximately $2,931,119) to ShaanXi Hushi Culture Communication Company (SHCC), a company owned by a business friend of Dean Li, the President and Chief Executive Officer of the Company. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at 200% of the prevailing PRC prime rate if SHCC repays the loan after 30 days. In July 2014, the Company received repayment of RMB 11M (approximately $1,786,410) and SHCC orally promised to pay off the remaining balance no later than December 31, 2015. On January 8, 2015, the Company received interest of RMB 455,000 (approximately $74,165) on the loan. The Outstanding balance was RMB 7M (approximately $1,101,703) as of September 30, 2015. On July 1, 2014, the Company lent an additional RMB 3M (approximately $487,203) to SHCC with three months term. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at four times of the current bank loan rate if SHCC repays the loan after 30 days. No collection has been received as of the filing date and SHCC orally promised to pay off the loan before December 31, 2015. On January 19, 2015, the Company received interest of RMB 360,000 (approximately $58,694) on the loan. The outstanding balance was RMB 3M (approximately $472,158) as of September 30, 2015. On November 30, 2012, the Company entered into an agreement with Zhongshi Fengde to co-purchase copyrights of two TV series with the Companys total investment is RMB 18 million (approximately $2.86 million at the time of investment). On January 28, 2015, both parties agreed to transfer the Companys payment in these two TV series to a short-term loan to Zhongshi Fengde as the copyrights purchase was not successfully completed. As a result, film costs of approximately $2.83 million were reclassified to notes receivable as of September 30, 2015. No collection has been received as of the filing date. Interest income for the three months ended September 30, 2015 and 2014 was 62,299 and nil, respectively, for the notes discussed above. |
Summary of Significant Accoun11
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited interim consolidated financial statements of China Media, Inc. (We or the Company), have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Companys annual financial statements for the year ended June 30, 2015 contained in the Company's Form 10-K field on September 25, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2015 included in this document have been omitted. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, estimates of product sales that will be returned and the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Companys financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Companys financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis. |
Film Costs (Tables)
Film Costs (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Film Cost | September 30, 2015 June 30, 2015 Completed and not released: In development - Film $ 786,931 $ 2,463,540 Film costs $ 786,931 $ 2,463,540 |
Description of Business (Detail
Description of Business (Details) - shares | Sep. 17, 2011 | Jul. 07, 2010 | Sep. 16, 2011 |
Shares, Outstanding | 39,750,000 | 39,743,000 | |
Stock Issued During Period, Shares, Issued for Noncash Consideration | 7,000 | ||
Fullead Overseas Limited | |||
Number of Shares Purchased of Company's common stock | 32,500,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Dean Li, President and Shareholder | |
Advance from Related party | $ 1,012,703 |
Maximum [Member] | |
Range of Annual Imputed Interest Rate (as a percentage) | 6.56% |
Minimum [Member] | |
Range of Annual Imputed Interest Rate (as a percentage) | 5.94% |
Film Costs (Details)
Film Costs (Details) - USD ($) | Sep. 30, 2015 | Jun. 30, 2015 |
Accounting Policies [Abstract] | ||
In development - TV Series | $ 786,931 | $ 2,463,540 |
Film costs | $ 786,931 | $ 2,463,540 |
Notes Receivable (Details Narra
Notes Receivable (Details Narrative) - Zhongshi Fengde [Member] - Business Partner [Member] - USD ($) | Jun. 30, 2015 | Mar. 20, 2013 |
Amount lent | $ 155,000 | |
Notes Receivable | $ 86,305 |