Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Entity Registrant Name | Original Source Entertainment, Inc. | ||
Entity Central Index Key | 1500198 | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Document Fiscal Year Focus | 2014 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 5,073,000 | ||
Entity Public Float | $315,115 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||
Cash | $205 | $525 |
Total current assets | 205 | 525 |
Total Assets | 205 | 525 |
Current liabilities | ||
Accounts payable | 9,966 | |
Accrued liabilities | 3,000 | |
Advances - related party | 22,628 | 952 |
Notes payable - related parties | 22,000 | |
Convertible notes payable - related party, net of debt discount | 6,000 | |
Accrued interest payable - related party | 1,864 | |
Total current liabilities | 35,594 | 30,816 |
Total Liabilities | 35,594 | 30,816 |
Stockholders' Deficit | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value; 45,000,000 shares authorized; 5,073,000 and 5,073,000 shares issued and outstanding as at December 31, 2014 and 2013, respectively | 5,073 | 5,073 |
Additional paid in capital | 76,723 | 45,577 |
Retained deficit | -117,185 | -80,941 |
Total Stockholders' Deficit | -35,389 | -30,291 |
Total Liabilities and Stockholders' Deficit | $205 | $525 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred stock, par value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 5,073,000 | 5,073,000 |
Common stock, shares outstanding | 5,073,000 | 5,073,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Revenue | $773 | $1,249 |
Operating Expenses: | ||
General and administrative | 36,687 | 26,342 |
Total operating expenses | 36,687 | 26,342 |
Loss from Operations | -35,914 | -25,093 |
Other income (expense) | -330 | -5,461 |
Loss before provision for income taxes | -36,244 | -30,554 |
Income tax provision | ||
Net Loss | ($36,244) | ($30,554) |
Net Loss Per Common Share: | ||
Basic and Diluted | ($0.01) | ($0.01) |
Weighted Average Number of Common Shares Outstanding - Basic and Diluted | 5,073,000 | 5,073,000 |
CONSOLIDATED_STATEMENTS_CHANGE
CONSOLIDATED STATEMENTS CHANGES IN STOCKHOLDERS' DEFICIT (USD $) | Total | Common Stock [Member] | Paid in Capital [Member] | Retained (Deficit) [Member] |
Balances at Dec. 31, 2012 | ($17,237) | $5,073 | $28,077 | ($50,387) |
Balances, shares at Dec. 31, 2012 | 5,073,000 | |||
Capital contribution from shareholder | 13,500 | 13,500 | ||
Beneficial conversion feature of convertible note and loan payable related party | 4,000 | 4,000 | ||
Net income (loss) for the year | -30,554 | -30,554 | ||
Balances at Dec. 31, 2013 | -30,291 | 5,073 | 45,577 | -80,941 |
Balances, shares at Dec. 31, 2013 | 5,073,000 | 5,073,000 | ||
Beneficial conversion feature of convertible note and loan payable related party | 3,225 | 3,225 | ||
Gain on forgiveness of related party notes payable | 27,921 | 27,921 | ||
Net income (loss) for the year | -36,244 | -36,244 | ||
Balances at Dec. 31, 2014 | ($35,389) | $5,073 | $76,723 | ($117,185) |
Balances, shares at Dec. 31, 2014 | 5,073,000 | 5,073,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | ||
Net Loss | ($36,244) | ($30,554) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Accretion of debt discount | 330 | 4,000 |
Changes in Operating Assets and Liabilities- | ||
Accounts payable and accrued liabilities | 12,966 | |
Accounts payable and accrued liabilities - related party | -3,225 | 1,461 |
Net Cash Used in Operating Activities | -26,173 | -25,093 |
Investing Activities: | ||
Net Cash Used in Investing Activities | ||
Financing Activities: | ||
Advances - related party | 22,628 | |
Notes payable - related parties | 7,000 | |
Convertible notes payable - related party | 3,225 | 4,000 |
Capital contribution - related party | 13,500 | |
Net Cash Provided by Financing Activities | 25,853 | 24,500 |
Net Change in Cash | -320 | -593 |
Cash - Beginning of Period | 525 | 1,118 |
Cash - End of Period | 205 | 525 |
Non-Cash Financing and Investing Activities: | ||
Gain on forgiveness or related party notes payable | 28,146 | |
Supplemental Disclosures | ||
Cash paid in interest | ||
Cash paid for income taxes |
ORGANIZATION_OPERATIONS_AND_SU
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Original Source Entertainment, Inc. (the “Company”), was incorporated in the State of Nevada on August 20, 2009 (“Inception”). The Company's intent is to license songs to the television and music industry for use for use in television shows or movies. The Company has had limited activity and revenue to date. | |
Basis of Presentation | |
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company's year-end is December 31. | |
Principles of consolidation | |
The accompanying consolidated financial statements include the accounts of Original Source Entertainment, Inc. and its sole wholly owned subsidiary, Original Source Music, Inc. All intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Development Stage Company | |
The Company is in the development stage as defined under the then current Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915-205 “Development-Stage Entities,” and among the additional disclosures required as a development stage company are that our financial statements were identified as those of a development stage company, and that the statements of operations, movement in stockholders' equity (deficit) and cash flows disclosed activity since the date of our inception (August 20, 2009) as a development stage company. Effective June 10, 2014 FASB changed its regulations with respect to Development Stage Entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2014 with the option for entities to early adopt these new provisions. The Company elected to early adopt these provisions and consequently these additional disclosures are not included in these financial statements. | |
Cash and cash equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. | |
Accounts receivable | |
The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At December 31, 2014 and 2013 the Company had no balance of accounts receivable. | |
Fair Value of Financial Instruments | |
FASB ASC 820-10 “Fair Value Measurements and Disclosures” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This ASC also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). | |
The three levels of the fair value hierarchy are described below: | |
Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |
Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable data by correlation or other means. | |
Level 3 Inputs that are both significant to the fair value measurement and unobservable. | |
The carrying value of cash, accrued liabilities and loan payable - related party approximates their fair value due to their short-term maturity. | |
Property and equipment | |
Property and equipment are recorded at cost and depreciated under accelerated and straight line methods over each item's estimated useful life. | |
Long-Lived Assets | |
In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value. | |
Income tax | |
The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as at December 31, 2014 and 2013. | |
Revenue recognition | |
The Company recognizes revenues in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. | |
Products and services, geographic areas and major customers | |
The company derives revenue from the licensing of songs to the television and music industry. All fee revenues each year were domestic and to external customers. | |
Advertising costs | |
Advertising costs are expensed as incurred. The Company incurred no advertising costs during the twelve months ended December 31, 2014 or 2013. | |
Stock-based compensation | |
The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. | |
The Company did not have a stock compensation plan in operation during the twelve months ended December 31, 2014 or 2013. | |
Basic and Diluted Earnings (Loss) Per Share | |
The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. | |
During the years ended December 31, 2014 and 2013, the Company did have potentially dilutive debt instruments outstanding that has been excluded from the earnings per share calculation, as such an inclusion would have been anti-dilutive due to losses incurred by the Company in both period and, therefore, basic and diluted earnings (loss) per share are equal in both periods. | |
Recent Accounting Pronouncements | |
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company other than those relating to Development Stage Entities as discussed above. | |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2014 | |
GOING CONCERN [Abstract] | |
GOING CONCERN | NOTE 2. GOING CONCERN |
The Company has suffered a loss from operations and has negative cash flows from operations, and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company's ability to continue as a going concern. | |
The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of licensing songs to the television and music industry for use for use in television shows or movies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. |
ADVANCES_PAYABLE_RELATED_PARTY
ADVANCES PAYABLE - RELATED PARTY | 12 Months Ended |
Dec. 31, 2014 | |
ADVANCES PAYABLE - RELATED PARTY [Abstract] | |
ADVANCES PAYABLE - RELATED PARTY | NOTE 3: ADVANCES PAYABLE - RELATED PARTY |
In support of the Company's efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. | |
During the twelve months ended December 31, 2014 a related party advanced to the Company $22,628 to pay for its operating expenses. As of December 31, 2014, the amount outstanding was $22,628. The note payable is non-interest bearing, due upon demand and unsecured. | |
The $952 loan balance at December 31, 2013 was forgiven in the year ended December 31, 2014. The gain on the forgiveness of this related party and recognized in additional paid in capital. | |
NOTES_PAYABLE_RELATED_PARTY
NOTES PAYABLE - RELATED PARTY | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
NOTES PAYABLE - RELATED PARTY [Abstract] | ||||||||||
NOTES PAYABLE - RELATED PARTY | NOTE 4. NOTES PAYABLE - RELATED PARTY | |||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Balance due to a shareholder, unsecured, bears no interest until June 1, 2011, and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at June 1, 2012. | $ | - | $ | 1,500 | ||||||
Balance due to a shareholder, unsecured, bears no interest until December 31, 2012 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. | - | 20,500 | ||||||||
Total | $ | - | $ | 22,000 | ||||||
Effective March 5, 2014, both of the interest bearing notes payable - related party, together with accrued interest of $1,242, were forgiven by the holder. The gain arising on forgiveness of these liabilities has been recognized in additional paid in capital. |
CONVERTIBLE_NOTES_PAYABLE_RELA
CONVERTIBLE NOTES PAYABLE - RELATED PARTY | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
CONVERTIBLE NOTES PAYABLE - RELATED PARTY [Abstract] | |||||||||
CONVERTIBLE NOTES PAYABLE - RELATED PARTY | NOTE 5. CONVERTIBLE NOTES PAYABLE - RELATED PARTY | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Balance due to a shareholder, unsecured, bears no interest until December 31, 2010 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. The principal balance is convertible at the option of the holder into shares of the Company's common stock at 50% of the lowest bid price of the Company's common stock in the 5 days prior to conversion, if quoted on an exchange, or if not quoted, at double the par value. | $ | - | $ | 2,000 | |||||
Balance due to a shareholder, unsecured, bears no interest until December 31, 2013 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. Any unpaid balance of principal or interest is convertible at the option of the holder into shares of the Company's common stock at $0.01 per share. (1) | - | 4,000 | |||||||
On Balance due to a former related party who loaned the Company $3,225, net of $3,225 debt discount. The note is interest fee until June 30, 2015 after which time it bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock. The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). | |||||||||
Total | $ | - | $ | 6,000 | |||||
-1 | The convertible feature of the convertible note payable issued in the twelve months ended December 31, 2013 was valued at $16,000 on an intrinsic value basis. The valuation was based on the fact that 400,000 shares were issuable under the terms of note at $0.01 per share compared to the last cash price for the sale of the shares of $0.05. However, as the debt discount cannot exceed the face value of the loan note, $4,000 was recognized as a debt discount and amortized over the life of the loan note. | ||||||||
Effective March 5, 2014, both of these convertible notes payable - related party outstanding at December 31, 2013, were forgiven by the holder. The gain arising on forgiveness of these liabilities has been recognized in additional paid in capital. | |||||||||
On December 31, 2014 a former related party loaned the Company $3,255. The note is interest free until June 30, 2015 after which time it bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock. The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $3,225 as of December 31, 2014 and matures on February 28, 2016. The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $3,255. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the effective interest rate method, over the life of the note. |
STOCKHOLDERS_DEFICIT
STOCKHOLDERS' DEFICIT | 12 Months Ended |
Dec. 31, 2014 | |
STOCKHOLDERS' DEFICIT [Abstract] | |
STOCKHOLDERS' DEFICIT | NOTE 6. STOCKHOLDERS' DEFICIT |
Preferred Stock | |
The Company is authorized to issue 5,000,000 shares of preferred stock with a par value of $0.001 per share. | |
No shares of preferred stock were issued and outstanding during the twelve months ended December 31, 2014 and 2013. | |
Common Stock | |
The Company is authorized to issue 45,000,000 shares of common stock with a par value of $0.001 per share. | |
During the twelve months ended December 31, 2014 the Company issued no shares of common stock. | |
As at December 31, 2014 there were 5,073,000 shares of common stock issued and outstanding. | |
Additional Paid in Capital | |
During the twelve months ended December 31, 2014, as described in Note 3, 4 and 5, related party shareholders forgave Company liabilities totaling $28,146. The gain arising on forgiveness of these liabilities has been recognized in additional paid in capital. | |
During the twelve months ended December 31, 2013, a shareholder contributed $13,500 to fund the Company's ongoing activities. The shareholder did not receive any equity for the contribution and the contribution is not repayable. Accordingly this contribution has been credited to additional paid in capital. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES [Abstract] | |||||||||||
INCOME TAXES | NOTE 7 – INCOME TAXES | ||||||||||
The Internal Revenue Code (“IRC”) allows net operating losses (“NOL's”) to be carried forward and applied against future profits for a period of twenty years. | |||||||||||
We did not provide any current or deferred federal income tax provision or benefit for any of the periods presented in our consolidated financial statements because we have experienced losses since our inception. When it is more likely than not, that a tax asset cannot be realized through future income, we must record an allowance against any potential future tax benefit. We provided a full valuation allowance against our net deferred tax assets, consisting of net operating loss carry forwards, because we determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forward periods. | |||||||||||
We have not taken a tax position that, if challenged, would have a material effect on our consolidated financial statements for the years ended December 31, 2014 and 2013 as defined under ASC 740. We did not recognize any adjustment to our liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of our accumulated deficit on our consolidated balance sheets. | |||||||||||
Our provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
Income tax provision at the federal statutory rate | 39 | % | 39 | % | |||||||
Effect of operating losses | (39 | %) | (39 | %) | |||||||
— | % | — | % | ||||||||
Changes in our cumulative net deferred tax assets consist of the following: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Net loss carry forward | $ | 45,702 | $ | 31,567 | |||||||
Valuation allowance | (45,702 | ) | (31,567 | ||||||||
$ | — | $ | — | ||||||||
A reconciliation of our income taxes computed at the statutory rate is as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
Tax at statutory rate | $ | 14,135 | $ | 9,786 | |||||||
Valuation allowance | (14,135 | ) | (9,786 | ) | |||||||
$ | — | $ | — |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8. SUBSEQUENT EVENTS |
In accordance with ASC 855-10, “Subsequent Events” the Company has analyzed its operations subsequent to December 31, 2014 to the date these financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements. |
ORGANIZATION_OPERATIONS_AND_SU1
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation |
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company's year-end is December 31. | |
Principles of consolidation | Principles of consolidation |
The accompanying consolidated financial statements include the accounts of Original Source Entertainment, Inc. and its sole wholly owned subsidiary, Original Source Music, Inc. All intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Development Stage Company | Development Stage Company |
The Company is in the development stage as defined under the then current Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915-205 “Development-Stage Entities,” and among the additional disclosures required as a development stage company are that our financial statements were identified as those of a development stage company, and that the statements of operations, movement in stockholders' equity (deficit) and cash flows disclosed activity since the date of our inception (August 20, 2009) as a development stage company. Effective June 10, 2014 FASB changed its regulations with respect to Development Stage Entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2014 with the option for entities to early adopt these new provisions. The Company elected to early adopt these provisions and consequently these additional disclosures are not included in these financial statements. | |
Cash and cash equivalents | Cash and cash equivalents |
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. | |
Accounts receivable | Accounts receivable |
The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At December 31, 2014 and 2013 the Company had no balance of accounts receivable. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
FASB ASC 820-10 “Fair Value Measurements and Disclosures” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This ASC also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). | |
The three levels of the fair value hierarchy are described below: | |
Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |
Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable data by correlation or other means. | |
Level 3 Inputs that are both significant to the fair value measurement and unobservable. | |
The carrying value of cash, accrued liabilities and loan payable - related party approximates their fair value due to their short-term maturity. | |
Property and equipment | Property and equipment |
Property and equipment are recorded at cost and depreciated under accelerated and straight line methods over each item's estimated useful life. | |
Long-Lived Assets | Long-Lived Assets |
In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value. | |
Income tax | Income tax |
The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as at December 31, 2014 and 2013. | |
Revenue recognition | Revenue recognition |
The Company recognizes revenues in accordance with Accounting Standards Codification No. 605, “Revenue Recognition” ("ASC-605"), ASC-605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. | |
Products and services, geographic areas and major customers | Products and services, geographic areas and major customers |
The company derives revenue from the licensing of songs to the television and music industry. All fee revenues each year were domestic and to external customers. | |
Advertising costs | Advertising costs |
Advertising costs are expensed as incurred. The Company incurred no advertising costs during the twelve months ended December 31, 2014 or 2013. | |
Stock-based compensation | Stock-based compensation |
The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. | |
The Company did not have a stock compensation plan in operation during the twelve months ended December 31, 2014 or 2013. | |
Basic and Diluted Earnings (Loss) Per Share | Basic and Diluted Earnings (Loss) Per Share |
The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive. | |
During the years ended December 31, 2014 and 2013, the Company did have potentially dilutive debt instruments outstanding that has been excluded from the earnings per share calculation, as such an inclusion would have been anti-dilutive due to losses incurred by the Company in both period and, therefore, basic and diluted earnings (loss) per share are equal in both periods. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company other than those relating to Development Stage Entities as discussed above. | |
NOTES_PAYABLE_RELATED_PARTY_Ta
NOTES PAYABLE - RELATED PARTY (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
NOTES PAYABLE - RELATED PARTY [Abstract] | ||||||||||
Schedule of Notes Payable | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Balance due to a shareholder, unsecured, bears no interest until June 1, 2011, and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at June 1, 2012. | $ | - | $ | 1,500 | ||||||
Balance due to a shareholder, unsecured, bears no interest until December 31, 2012 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. | - | 20,500 | ||||||||
Total | $ | - | $ | 22,000 |
CONVERTIBLE_NOTES_PAYABLE_RELA1
CONVERTIBLE NOTES PAYABLE - RELATED PARTY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
CONVERTIBLE NOTES PAYABLE - RELATED PARTY [Abstract] | |||||||||
Schedule of Convertible Notes Payable | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Balance due to a shareholder, unsecured, bears no interest until December 31, 2010 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. The principal balance is convertible at the option of the holder into shares of the Company's common stock at 50% of the lowest bid price of the Company's common stock in the 5 days prior to conversion, if quoted on an exchange, or if not quoted, at double the par value. | $ | - | $ | 2,000 | |||||
Balance due to a shareholder, unsecured, bears no interest until December 31, 2013 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. Any unpaid balance of principal or interest is convertible at the option of the holder into shares of the Company's common stock at $0.01 per share. (1) | - | 4,000 | |||||||
On Balance due to a former related party who loaned the Company $3,225, net of $3,225 debt discount. The note is interest fee until June 30, 2015 after which time it bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock. The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). | |||||||||
Total | $ | - | $ | 6,000 | |||||
-1 | The convertible feature of the convertible note payable issued in the twelve months ended December 31, 2013 was valued at $16,000 on an intrinsic value basis. The valuation was based on the fact that 400,000 shares were issuable under the terms of note at $0.01 per share compared to the last cash price for the sale of the shares of $0.05. However, as the debt discount cannot exceed the face value of the loan note, $4,000 was recognized as a debt discount and amortized over the life of the loan note. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES [Abstract] | |||||||||||
Schedule of sources and tax effects of the differences for the periods | Years Ended December 31, | ||||||||||
2014 | 2013 | ||||||||||
Income tax provision at the federal statutory rate | 39 | % | 39 | % | |||||||
Effect of operating losses | (39 | %) | (39 | %) | |||||||
— | % | — | % | ||||||||
Schedule of changes in our cumulative net deferred tax assets | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Net loss carry forward | $ | 45,702 | $ | 31,567 | |||||||
Valuation allowance | (45,702 | ) | (31,567 | ||||||||
$ | — | $ | — | ||||||||
Schedule of reconciliation of income taxes computed at the statutory rate | Years Ended December 31, | ||||||||||
2014 | 2013 | ||||||||||
Tax at statutory rate | $ | 14,135 | $ | 9,786 | |||||||
Valuation allowance | (14,135 | ) | (9,786 | ) | |||||||
$ | — | $ | — |
ORGANIZATION_OPERATIONS_AND_SU2
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Accounts receivable | ||
Tax assets (liabilities) | ||
Advertising cost |
ADVANCES_PAYABLE_RELATED_PARTY1
ADVANCES PAYABLE - RELATED PARTY (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
ADVANCES PAYABLE - RELATED PARTY [Abstract] | ||
Advances from related party | $22,628 | |
Amount outstanding | 22,628 | |
Gain on forgiveness of related party debt | $952 |
NOTES_PAYABLE_RELATED_PARTY_De
NOTES PAYABLE - RELATED PARTY (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 05, 2014 | |
Related Party Transaction [Line Items] | |||
Notes payable | $22,000 | ||
Forgiven accrued interest on related party notes payable | 1,242 | ||
Related Party Note Payable One [Member] | |||
Related Party Transaction [Line Items] | |||
Notes payable | 1,500 | ||
Interest rate | 6.00% | 6.00% | |
Due date | 1-Jun-12 | 1-Jun-12 | |
Related Party Note Payable Two [Member] | |||
Related Party Transaction [Line Items] | |||
Notes payable | $20,500 | ||
Interest rate | 6.00% | 6.00% | |
Due date | 31-Dec-13 | 31-Dec-13 |
CONVERTIBLE_NOTES_PAYABLE_RELA2
CONVERTIBLE NOTES PAYABLE - RELATED PARTY (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Related Party Transaction [Line Items] | ||||
Convertible notes payable | $6,000 | |||
Related Party Convertible Note Payable One [Member] | ||||
Related Party Transaction [Line Items] | ||||
Convertible notes payable | 2,000 | |||
Interest rate | 6.00% | |||
Due date | 31-Dec-13 | |||
Percentage of lowest bid price | 50.00% | |||
Number of days prior to conversion | 5 days | |||
Related Party Convertible Note Payable Two [Member] | ||||
Related Party Transaction [Line Items] | ||||
Convertible notes payable | [1] | 4,000 | [1] | |
Interest rate | 6.00% | |||
Due date | 31-Dec-13 | |||
Shares issuable upon conversion | 400,000 | |||
Conversion price | $0.01 | |||
Price per share for the sale of shares | $0.05 | |||
Beneficial conversion feature | 16,000 | |||
Debt discount | 4,000 | |||
Related Party Convertible Note Payable Three [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 6.00% | |||
Due date | 28-Feb-16 | |||
Conversion price | $0.00 | |||
Convertible notes payable | 3,225 | |||
Beneficial conversion feature | 3,255 | |||
Debt discount | 3,225 | |||
Amount of loan | $3,225 | |||
[1] | The convertible feature of the convertible note payable issued in the twelve months ended December 31, 2013 was valued at $16,000 on an intrinsic value basis. The valuation was based on the fact that 400,000 shares were issuable under the terms of note at $0.01 per share compared to the last cash price for the sale of the shares of $0.05. However, as the debt discount cannot exceed the face value of the loan note, $4,000 was recognized as a debt discount and amortized over the life of the loan note. |
STOCKHOLDERS_DEFICIT_Details
STOCKHOLDERS' DEFICIT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Preferred Stock | ||
Authorized | 5,000,000 | 5,000,000 |
Par value per share | $0.00 | $0.00 |
Issued | 0 | 0 |
Outstanding | 0 | 0 |
Common Stock | ||
Authorized | 45,000,000 | 45,000,000 |
Par value per share | $0.00 | $0.00 |
Issued during the period | 0 | |
Issued | 5,073,000 | 5,073,000 |
Outstanding | 5,073,000 | 5,073,000 |
Additional Paid in Capital | ||
Capital contribution from shareholder | $13,500 | |
Amount of notes payable, convertible notes payable and the related accrued interest forgave by related party shareholder | $28,146 |
INCOME_TAXES_Schdeule_of_sourc
INCOME TAXES (Schdeule of sources and tax effects of the differences) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Sources and tax effects of the differences for the periods | ||
Income tax provision at the federal statutory rate | 39.00% | 39.00% |
Effect of operating losses | -39.00% | -39.00% |
Income tax rate, percentage |
INCOME_TAXES_Schdeule_of_chang
INCOME TAXES (Schdeule of changes in our cumulative net deferred tax assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in our cumulative net deferred tax assets | ||
Net loss carry forward | $45,702 | $31,567 |
Valuation allowance | -45,702 | -31,567 |
Net deferred tax assets |
INCOME_TAXES_Schdeule_of_recon
INCOME TAXES (Schdeule of reconciliation of income taxes computed at the statutory rate) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of income taxes computed at the statutory rate | ||
Tax at statutory rate | $14,135 | $9,786 |
Valuation allowance | -14,135 | -9,786 |
Income tax expenses |