Original Source Music (OSMU) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016	Jun. 30, 2015
Document and Entity Information:
Entity Registrant Name	Original Source Music, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Trading Symbol	osmu
Amendment Flag	false
Entity Central Index Key	1,639,836
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		5,073,000
Entity Public Float			$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Original Source Music, Inc. - C

Original Source Music, Inc. - Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 4,277	$ 1,838
Total current assets	4,277	1,838
Total Assets	4,277	1,838
Current liabilities:
Accrued liabilities and accounts payable	100	5,802
Accrued interest to a related party	873	400
Current convertible notes payable - related party, net of debt discount	20,122	13,619
Total current liabilities	21,095	19,821
Long-Term Liabilities:
Long-term convertible notes payable - related party, net of debt discount	712	0
Total Long-Term Liabilities	712	0
Total Liabilities	21,807	19,821
Stockholders' Deficit:
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.001 par value; 45,000,000 shares authorized; 5,073,000 shares issued and outstanding	5,073	5,073
Additional paid-in capital	34,061	18,444
Accumulated deficit	(56,664)	(41,500)
Total stockholders' deficit	(17,530)	(17,983)
Total Liabilities and Stockholders' Deficit	$ 4,277	$ 1,838

Original Source Music, Inc. - B

Original Source Music, Inc. - Balance Sheets (Parentheticals)(USD $) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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 (in dollars per share)	$ 0.001	$ 0.001
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

Original Source Music, Inc. - 4

Original Source Music, Inc. - Condensed Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement
Revenue	$ 91	$ 300	$ 193	$ 413
Operating Expenses
General and administrative	130	123	255	247
Professional fees	7,114	0	7,414	9,000
Total Operating Expenses	7,244	123	7,669	9,247
Income from Operations	(7,153)	177	(7,476)	(8,834)
Interest (Expense) to a related party	(3,438)	(3,697)	(7,688)	(5,395)
Income (Loss) before Provision for Income Taxes	(10,591)	(3,520)	(15,164)	(14,229)
Income Tax Provisions	0	0	0	0
Net Income (Loss)	$ (10,591)	$ (3,520)	$ (15,164)	$ (14,229)
Net loss per common share basic and diluted	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted	5,073,000	5,073,000	5,073,000	5,073,000

Original Source Music, Inc. - 5

Original Source Music, Inc. - Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (15,164)	$ (14,229)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of debt discount	7,215	5,395
Accrued interest to a related party	473	0
Movement in operating assets and liabilities:
Accrued expenses	(5,702)	(3,000)
Net cash (used in) provided by operating activities	(13,178)	(11,834)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances under convertible notes payable - related party	15,617	12,000
Net cash provided by financing activities	15,617	12,000
Net change in cash	2,439	166
Cash - beginning of period	1,838	205
Cash - end of period	4,277	371
Supplemental cash flow information
Interest	0	0
Income taxes	0	0
Non-cash Activities
Beneficial conversion feature	$ 0	$ 0

Note 1_ Organization, Operation

Note 1: Organization, Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Notes
Note 1: Organization, Operations and Summary of Significant Accounting Policies	NOTE 1: ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Original Source Music, Inc. (“the Company”, “we”, “us” or “our’) was incorporated in the State of Nevada on August 20, 2009 ("Inception"). The Company licenses songs to the television and music industry for use in television shows or movies. The Company has had limited activity and revenue to date. Basis of Preparation of Financial Statements The accompanying financial statements of Original Source Music, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 included in our registration statement filed with the SEC. Income tax The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as of June 30, 2016 or December 31, 2015. 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 three and six months ended June 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding. However, the shares potentially issuable under these notes have been excluded from the calculation of loss per share as the inclusion of such shares would have been anti-dilutive as the Company recognized a loss during the three and six months ended June 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and six months ended June 30, 2016. 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.

Note 2_ Going Concern

Note 2: Going Concern	6 Months Ended
	Jun. 30, 2016
Notes
Note 2: Going Concern	NOTE 2: GOING CONCERN The unaudited financial statements for the three and six months ended June 30, 2016 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has suffered a loss from operations and has negative cash flows from operations, and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of licensing songs to the television and music industry for use in television shows or movies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

Note 3_ Convertible Notes Payab

Note 3: Convertible Notes Payable - Related Party	6 Months Ended
	Jun. 30, 2016
Notes
Note 3: Convertible Notes Payable - Related Party	NOTE 3: CONVERTIBLE NOTES PAYABLE – RELATED PARTY June 30, 2016 June 30, 2015 Convertible Note A Principal 3255 3255 Debt discount 0 -1860 Convertible Note B Principal 6000 6000 Debt discount 0 -3500 Convertible Note C Principal 6000 6000 Debt discount 0 -4500 Convertible Note D Principal 3260 0 Debt discount -1304 0 Convertible Note E Principal 1500 0 Debt discount -794 0 Convertible Note F Principal 5703 0 Debt discount -3802 0 Convertible Note G Principal 7114 0 Debt discount -6402 0 Convertible Note H Principal 2500 0 Debt discount -2212 0 Convertible Note I Principal 300 0 Debt discount -284 0 Total convertible notes payable - non related party, net of debt discount 20834 5395 Convertible Note A: On December 31, 2014 a related party loaned the Company $3,255. The note is interest free until June 30, 2015 after which time it’ll 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 $3,255 as of June 30, 2016 and matured on February 28, 2016 but was extended to December 31, 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 straight line interest rate method, over the life of the note. Convertible Note B: On January 21, 2015 a related party loaned the Company $6,000. The note is interest free until June 30, 2015 after which time it bears 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 $6,000 as of June 30, 2016 and matured on January 30, 2016 but was extended to December 31, 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 a beneficial conversion feature (capped at proceeds received) of $6,000. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. Convertible Note C: On March 30, 2015 a related party loaned the Company $6,000. The note is interest free until August 31, 2015 after which time it bears 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 $6,000 as of June 30, 2016 and matured on March 30, 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 a beneficial conversion feature (capped at proceeds received) of $6,000. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. This note is currently in default. Convertible Note D: On September 14, 2015 a related party loaned the Company $3,260. The note is interest free until June 30, 2016 after which time it’ll 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 $3,260 as of June 30, 2016 and matures on December 31, 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 $3,260. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. Convertible Note E: On November 6, 2015 a related party loaned the Company $1,500. The note is interest free until December 31, 2016 after which time it bears 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 $1,500 as of June 30, 2016 and matures on December 31, 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 a beneficial conversion feature (capped at proceeds received) of $1,500. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. Convertible Note F: On February 16, 2016 a related party loaned the Company $5,703. The note is interest free until December 31, 2016 after which time it bears 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 $5,703 as of June 30, 2016 and matures on March 31, 2017. 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 a beneficial conversion feature (capped at proceeds received) of $5,703. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. Convertible Note G: On May 6, 2016 a related party loaned the Company $7,114. The note is interest free until December 31, 2016 after which time it’ll 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 $7,114 as of June 30, 2016 and matures on December 31, 2017. 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 $7,114. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. Convertible Note H: On May 20, 2016 a related party loaned the Company $2,500. The note is interest free until December 31, 2016 after which time it bears 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 $2,500 as of June 30, 2016 and matures on June 13, 2017. 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 a beneficial conversion feature (capped at proceeds received) of $2,500. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note. Convertible Note I: On June 13, 2016 a related party loaned the Company $300. The note is interest free until December 31, 2016 after which time it bears 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 $300 as of June 30, 2016 and matures on March 31, 2017. 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 a beneficial conversion feature (capped at proceeds received) of $300. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Note 4 - Spin-off

Note 4 - Spin-off	6 Months Ended
	Jun. 30, 2016
Notes
Note 4 - Spin-off	NOTE 4 – SPIN-OFF On February 5, 2014, the board of directors of Original Source Entertainment authorized the spin-off of the Company to shareholders of record as of February 25, 2014. The spin-off was done in connection with a change of control of Original Source Entertainment. Under the terms of the spin-off, the Company’s common shares, par value $0.001 per share, will be distributed on a pro-rata basis to each holder of Original Source Entertainment’s common shares on the record date without any consideration or action on the part of such holders, and the holders of Original Source Entertainment’s common shares as of the record date will become owners of 100 percent of our common shares. On May 13, 2016, the spin-off was completed due to the satisfactory resolution of all comments from the Securities and Exchange Commission to the Form 10 and the Form 10’s effectiveness.

Note 5_ Income Taxes

Note 5: Income Taxes	6 Months Ended
	Jun. 30, 2016
Notes
Note 5: Income Taxes	NOTE 5: INCOME TAXES As of June 30, 2015 the Company had net operating loss carry forwards of approximately $23,781 that may be available to reduce future years’ taxable income through 2035. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $23,781 for Federal income tax reporting purposes are subject to annual limitations should a change in ownership occur.

Note 6_ Subsequent Events

Note 6: Subsequent Events	6 Months Ended
	Jun. 30, 2016
Notes
Note 6: Subsequent Events	NOTE 6: SUBSEQUENT EVENTS In accordance with ASC 855-10, "Subsequent Events" the Company has analyzed its operations subsequent to June 30, 2016 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 other than as disclosed above.

Note 1_ Organization, Operati12

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Basis of presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Policies
Basis of presentation	Original Source Music, Inc. (“the Company”, “we”, “us” or “our’) was incorporated in the State of Nevada on August 20, 2009 ("Inception"). The Company licenses songs to the television and music industry for use in television shows or movies. The Company has had limited activity and revenue to date. Basis of Preparation of Financial Statements The accompanying financial statements of Original Source Music, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 included in our registration statement filed with the SEC.

Note 1_ Organization, Operati13

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Income Tax (Policies)	6 Months Ended
	Jun. 30, 2016
Policies
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 carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as of June 30, 2016 or December 31, 2015.

Note 1_ Organization, Operati14

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Basic and Diluted Earnings (loss) Per Share (Policies)	6 Months Ended
	Jun. 30, 2016
Policies
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 three and six months ended June 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding. However, the shares potentially issuable under these notes have been excluded from the calculation of loss per share as the inclusion of such shares would have been anti-dilutive as the Company recognized a loss during the three and six months ended June 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and six months ended June 30, 2016.

Note 1_ Organization, Operati15

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2016
Policies
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.

Note 3_ Convertible Notes Pay16

Note 3: Convertible Notes Payable - Related Party: Schedule of Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2016
Tables/Schedules
Schedule of Related Party Transactions	June 30, 2016 June 30, 2015 Convertible Note A Principal 3255 3255 Debt discount 0 -1860 Convertible Note B Principal 6000 6000 Debt discount 0 -3500 Convertible Note C Principal 6000 6000 Debt discount 0 -4500 Convertible Note D Principal 3260 0 Debt discount -1304 0 Convertible Note E Principal 1500 0 Debt discount -794 0 Convertible Note F Principal 5703 0 Debt discount -3802 0 Convertible Note G Principal 7114 0 Debt discount -6402 0 Convertible Note H Principal 2500 0 Debt discount -2212 0 Convertible Note I Principal 300 0 Debt discount -284 0 Total convertible notes payable - non related party, net of debt discount 20834 5395

Note 3_ Convertible Notes Pay17

Note 3: Convertible Notes Payable - Related Party: Schedule of Related Party Transactions (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Details
Convertible Note A Principal	$ 3,255	$ 3,255
Convertible Note A Debt Discount	0	(1,860)
Convertible Note B Principal	6,000	6,000
Convertible Note B Debt Discount	0	(3,500)
Convertible Note C Principal	6,000	6,000
Convertible Note C Debt Discount	0	(4,500)
Convertible Note D Principal	3,260	0
Convertible Note D Debt Discount	(1,304)	0
Convertible Note E Principal	1,500	0
Convertible Note E Debt Discount	(794)	0
Convertible Note F Principal	5,703	0
Convertible Note F Debt Discount	(3,802)	0
Convertible Note G Principal	7,114	0
Convertible Note G Debt Discount	(6,402)	0
Convertible Note H Principal	2,500	0
Convertible Note H Debt Discount	(2,212)	0
Convertible Note I Principal	300	0
Convertible Note I Debt Discount	(284)	0
Total convertible notes payable - non related party, net of debt discount	$ 20,834	$ 5,395

Note 5_ Income Taxes (Details)

Note 5: Income Taxes (Details)	Jun. 30, 2015USD ($)
Details
Net operating loss carry forwards	$ 23,781