Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Nov. 21, 2016 | Jun. 30, 2015 | |
Document and Entity Information: | |||
Entity Registrant Name | Original Source Music, Inc. | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 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 | Q3 |
Original Source Music, Inc. - C
Original Source Music, Inc. - Condensed Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 576 | $ 1,838 |
Total current assets | 576 | 1,838 |
Total Assets | 576 | 1,838 |
Current liabilities: | ||
Accrued liabilities and accounts payable | 100 | 5,802 |
Accrued interest to a related party | 1,164 | 400 |
Current convertible notes payable - related party, net of debt discount | 22,442 | 13,619 |
Total current liabilities | 23,706 | 19,821 |
Long-Term Liabilities: | ||
Long-term convertible notes payable - related party, net of debt discount | 1,779 | 0 |
Total Long-Term Liabilities | 1,779 | 0 |
Total Liabilities | 25,485 | 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 | 35,561 | 18,444 |
Accumulated deficit | (65,543) | (41,500) |
Total stockholders' deficit | (24,909) | (17,983) |
Total Liabilities and Stockholders' Deficit | $ 576 | $ 1,838 |
Original Source Music, Inc. - B
Original Source Music, Inc. - Balance Sheets (Parentheticals)(USD $) - $ / shares | Sep. 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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement | ||||
Revenue | $ 50 | $ 48 | $ 244 | $ 461 |
Operating Expenses | ||||
General and administrative | 951 | 979 | 1,206 | 1,226 |
Professional fees | 1,800 | 2,500 | 9,215 | 11,500 |
Total Operating Expenses | 2,751 | 3,479 | 10,421 | 12,726 |
Income from Operations | (2,701) | (3,431) | (10,177) | (12,265) |
Interest (Expense) to a related party | (6,177) | (4,046) | (13,866) | (9,441) |
Income (Loss) before Provision for Income Taxes | (8,878) | (7,477) | (24,043) | (21,706) |
Income Tax Provisions | 0 | 0 | 0 | 0 |
Net Income (Loss) | $ (8,878) | $ (7,477) | $ (24,043) | $ (21,706) |
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 ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income (Loss) | $ (24,043) | $ (21,706) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Amortization of debt discount | 13,102 | 9,273 |
Accrued interest to a related party | 764 | 169 |
Movement in operating assets and liabilities: | ||
Accrued expenses | (5,702) | (3,000) |
Net cash (used in) provided by operating activities | (15,879) | (15,264) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used in investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment on convertible notes payable - related party | (2,500) | 0 |
Advances under convertible notes payable - related party | 17,117 | 15,260 |
Net cash provided by financing activities | 17,117 | 15,260 |
Net change in cash | 1,238 | (4) |
Cash - beginning of period | 1,838 | 205 |
Cash - end of period | 3,076 | 201 |
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 | 9 Months Ended |
Sep. 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 nine months ended September 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. 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 nine months ended September 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding. However, the share 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 nine months ended September 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and nine months ended September 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 | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 2: Going Concern | NOTE 2: GOING CONCERN The unaudited financial statements for the three and nine months ended September 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 | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 3: Convertible Notes Payable - Related Party | NOTE 3: CONVERTIBLE NOTES PAYABLE RELATED PARTY September 30, 2016 December 31, 2015 Convertible Note A Principal 3,255 3,255 Debt discount 0 (449) Convertible Note B Principal 6,000 6,000 Debt discount 0 (496) Convertible Note C Principal 6,000 6,000 Debt discount 0 (1,500) Convertible Note D Principal 3,260 3,260 Debt discount (652) (2,598) Convertible Note E Principal 1,500 1,500 Debt discount (529) (1,323) Convertible Note F Principal 5,703 0 Debt discount (2,535) 0 Convertible Note G Principal 7,114 0 Debt discount (5,335) 0 Convertible Note I Principal 300 0 Debt discount (189) 0 Convertible Note J Principal 1,500 0 Debt discount (1,171) 0 Total convertible notes payable - non related party, net of debt discount 24,221 13,619 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 itll 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 September 30, 2015 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 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 itll 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 September 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 September 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 ofSeptember30, 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 itll 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 September 30, 2016and 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 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 September 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. Convertible Note J: On July 7, 2016 a related party loaned the Company $1,500. The note is interest free until June 30, 2017 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 September 30, 2016 and matures on July 30, 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 $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. |
Note 4_ Subsequent Events
Note 4: Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 4: Subsequent Events | NOTE 4: SUBSEQUENT EVENTS In accordance with ASC 855-10, "Subsequent Events" the Company has analyzed its operations subsequent to September 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, Operati10
Note 1: Organization, Operations and Summary of Significant Accounting Policies: Basis of presentation (Policies) | 9 Months Ended |
Sep. 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 nine months ended September 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, Operati11
Note 1: Organization, Operations and Summary of Significant Accounting Policies: Basic and Diluted Earnings (loss) Per Share (Policies) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding. However, the share 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 nine months ended September 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and nine months ended September 30, 2016. |
Note 1_ Organization, Operati12
Note 1: Organization, Operations and Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 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 Pay13
Note 3: Convertible Notes Payable - Related Party: Schedule of Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Related Party Transactions | September 30, 2016 December 31, 2015 Convertible Note A Principal 3,255 3,255 Debt discount 0 (449) Convertible Note B Principal 6,000 6,000 Debt discount 0 (496) Convertible Note C Principal 6,000 6,000 Debt discount 0 (1,500) Convertible Note D Principal 3,260 3,260 Debt discount (652) (2,598) Convertible Note E Principal 1,500 1,500 Debt discount (529) (1,323) Convertible Note F Principal 5,703 0 Debt discount (2,535) 0 Convertible Note G Principal 7,114 0 Debt discount (5,335) 0 Convertible Note I Principal 300 0 Debt discount (189) 0 Convertible Note J Principal 1,500 0 Debt discount (1,171) 0 Total convertible notes payable - non related party, net of debt discount 24,221 13,619 |
Note 3_ Convertible Notes Pay14
Note 3: Convertible Notes Payable - Related Party: Schedule of Related Party Transactions (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Details | ||
Convertible Note A Principal | $ 3,255 | $ 3,255 |
Convertible Note A Debt Discount | 0 | (449) |
Convertible Note B Principal | 6,000 | 6,000 |
Convertible Note B Debt Discount | 0 | (496) |
Convertible Note C Principal | 6,000 | 6,000 |
Convertible Note C Debt Discount | 0 | (1,500) |
Convertible Note D Principal | 3,260 | 3,260 |
Convertible Note D Debt Discount | (652) | (2,598) |
Convertible Note E Principal | 1,500 | 1,500 |
Convertible Note E Debt Discount | (529) | (1,323) |
Convertible Note F Principal | 5,703 | 0 |
Convertible Note F Debt Discount | (2,535) | 0 |
Convertible Note G Principal | 7,114 | 0 |
Convertible Note G Debt Discount | (5,335) | 0 |
Convertible Note I Principal | 300 | 0 |
Convertible Note I Debt Discount | (189) | 0 |
Convertible Note J Principal | 1,500 | 0 |
Convertible Note J Debt Discount | (1,171) | 0 |
Total convertible notes payable - non related party, net of debt discount | $ 24,221 | $ 13,619 |