Original Source Music (OSMU) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2017shares
Document and Entity Information:
Entity Registrant Name	Original Source Music, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
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	5,273,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Original Source Music, Inc. - C

Original Source Music, Inc. - Condensed Consolidated Balance Sheets - USD ($)		Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents		$ 685	$ 842
Prepaid expenses		1,000
Total Currents Assets		1,685	842
Total Assets		1,685	842
Current Liabilities:
Accounts payable and accrued liabilities		100	100
Convertible notes payable, related parties	[1]		8,171
Total Current Liabilities		100	8,271
Notes payable, related parties		56,035	26,435
Total Liabilities		56,135	34,706
Stockholders' Deficit
Preferred stock	[2]
Common stock	[3]	5,273	5,073
Common stock payable			90
Additional paid-in capital		37,870	36,980
Accumulated deficit		(97,593)	(76,007)
Total Stockholders' Deficit		(54,450)	(33,864)
Total Liabilities and Stockholders' Deficit		$ 1,685	$ 842
[1]	Net of debt discount of $0 and $6,446, respectively
[2]	$0.001 par value; 5,000,000 shares authorized; none issued and outstanding
[3]	$0.001 par value; 45,000,000 shares authorized; 5,273,000 and 5,073,000 shares issued and outstanding, respectively

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position
Preferred Stock, Par Value	$ 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	$ 0.001	$ 0.001
Common Stock, Shares Authorized	45,000,000	45,000,000
Common Stock, Shares Issued	5,273,000	5,073,000
Common Stock, Shares Outstanding	5,273,000	5,073,000

Original Source Music, Inc. - 4

Original Source Music, Inc. - Condensed Consolidated Statements of Operations - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement
Revenue		$ 75	$ 50	$ 271	$ 244
Operating Expenses:
General and administrative		1,939	951	2,288	1,206
Professional fees		3,300	1,800	13,123	9,215
Total operating expenses		5,239	2,751	15,411	10,421
Loss from operations		(5,164)	(2,701)	(15,140)	(10,177)
Interest expense, related parties		(2,134)	(6,177)	(6,446)	(13,866)
Loss before income taxes		(7,298)	(8,878)	(21,586)	(24,043)
Provision for income taxes
Net loss		$ (7,298)	$ (8,878)	$ (21,586)	$ (24,043)
Net loss per common share basic and diluted	[1]	$ 0	$ 0	$ 0	$ 0
Weighted average shares outstanding basic and diluted		5,252,674	5,073,000	5,183,330	5,073,000
[1]	Denotes net loss per common share of less than $0.01 per share.

Original Source Music, Inc. - 5

Original Source Music, Inc. - Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (21,586)	$ (24,043)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	6,446	13,102
Accrued interest to related parties		764
Changes in operating assets and liabilities:
Prepaid expenses, increase decrease	(1,000)
Accounts payable and accrued liabilities, increase decrease	1,000	(5,702)
Net cash used in operating activities	(15,140)	(15,879)
Cash flows from investing activities:
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from issuance of convertible notes payable, related parties		17,117
Repayment of convertible notes payable, releated parties		(2,500)
Proceeds from issuance of notes payable, related party	14,983
Net cash provided by financing activities	14,983	14,617
Net decrease in cash and cash equivalents	(157)	(1,262)
Cash and cash equivalents at beginning of period	842	1,838
Cash and cash equivalents at end of period	685	576
Supplemental disclosure of cash flow information:
Cash paid during the period for interest
Cash paid during the period for income taxes
Supplemental schedule of non-cash financing activities:
Professional fees paid by related party	1,000
Convertible notes payable, related parties, exchanged for non-convertible notes payable, related parties	$ 14,617

Note 1 - Interim Financial Stat

Note 1 - Interim Financial Statements	9 Months Ended
	Sep. 30, 2017
Notes
Note 1 - Interim Financial Statements	Note 1 — Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes required for audited annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the condensed consolidated financial statements not misleading have been included. The balance sheet at December 31, 2016, has been derived from the Company’s audited consolidated financial statements as of that date. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and the notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, that was filed with the SEC on April 28, 2017. The results of operations for the nine months ended September 30, 2017, are not necessarily indicative of the results to be expected for the full year.

Note 2 - Going Concern

Note 2 - Going Concern	9 Months Ended
	Sep. 30, 2017
Notes
Note 2 - Going Concern	Note 2 — Going Concern The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. 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 - Summary of Significant

Note 3 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Notes
Note 3 - Summary of Significant Accounting Policies	Note 3 — Summary of Significant Accounting Policies The significant accounting policies followed by the Company for interim reporting are consistent with those included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. There were no material changes to our significant accounting policies during the interim period ended September 30, 2017. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. However, entities reporting under U.S. GAAP are not permitted to adopt the standard earlier than the original effective date of December 15, 2016. An entity should apply the guidance either retrospectively to each prior reporting period presented or retrospectively with the cumulative adjustment at the date of the initial application. The Company is currently in the process of evaluating the impact of adoption of the new accounting guidance on its consolidated financial statements and has not determined the impact of adoption on its consolidated financial statements.

Note 4 - Convertible Notes Paya

Note 4 - Convertible Notes Payable - Related Parties	9 Months Ended
	Sep. 30, 2017
Notes
Note 4 - Convertible Notes Payable - Related Parties	Note 4 — Convertible Notes Payable – Related Parties September 30, 2017 December 31, 2016 Convertible Note F Principal $ – $ 5,703 Debt Discount – (1,267) Convertible Note G Principal $ – $ 7,114 Debt Discount – (4,269) Convertible Note I Principal $ – $ 300 Debt Discount – (95) Convertible Note J Principal $ – $ 1,500 Debt Discount – (815) Total convertible notes payable to related parties, net of debt discounts $ – $ 8,171 Convertible Note F In February 2016, a related party loaned the Company $5,703. The note would have matured on March 31, 2017, and was interest free until December 31, 2016. On December 31, 2016, the note was amended to extend the maturity date and the interest-free period to December 31, 2017. The note was convertible at the option of the holder into shares of the Company's common stock at a conversion price of $0.002 per share. 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 was accounted for as a debt discount and was amortized to interest expense, using the straight-line interest rate method, over the life of the note. Convertible Note G In May 2016, a related party loaned the Company $7,114. The note would have matured on December 31, 2017. The note was interest free until December 31, 2016. On December 31, 2016, the note was amended to extend the interest-free period to December 31, 2017. The note was convertible at the option of the holder into shares of the Company's common stock at a conversion price of $0.002 per share. 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 the note and, accordingly, recorded a beneficial conversion feature (capped at proceeds received) of $7,114. Such beneficial conversion feature was accounted for as a debt discount and was amortized to interest expense, using the straight-line interest rate method, over the life of the note. Convertible Note I In June 2016, a related party loaned the Company $300. The note would have matured on March 31, 2017, and was interest free until December 31, 2016. On December 31, 2016, the note was amended to extend the maturity date and the interest-free period to December 31, 2017. The note was convertible at the option of the holder into shares of the Company's common stock at a conversion price of $0.002 per share. 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 was accounted for as a debt discount and was amortized to interest expense, using the straight-line interest rate method, over the life of the note. In July 2017, Convertible Notes F, G, and I in the aggregate amount of $13,117 were exchanged for a non-convertible promissory note in the amount of $13,117 (see details of promissory note below in note 5) and 100,000 shares of common stock. Convertible Note J In July 2016, a related party loaned the Company $1,500. The note would have matured on July 30, 2017, and was interest free until June 30, 2017. On June 30, 2017, the note was amended to extend the maturity date and the interest-free period to December 31, 2017. The note was convertible at the option of the holder into shares of the Company's common stock at a conversion price of $0.002 per share. 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 was accounted for as a debt discount and was amortized to interest expense, using the straight-line interest rate method, over the life of the note. In July 2017, Convertible Note J was exchanged for a non-convertible promissory note in the amount of $1,500 (see details of promissory note below in note 5) and 10,000 shares of common stock.

Note 5 - Notes Payable - Relate

Note 5 - Notes Payable - Related Parties	9 Months Ended
	Sep. 30, 2017
Notes
Note 5 - Notes Payable - Related Parties	Note 5 — Notes Payable - Related Parties Note K In December 2016, a related party loaned the Company $4,920. The note is interest free until December 31, 2017, after which time bears interest at 6%. The note matures on December 31, 2018, and requires no periodic payment until maturity. Note L In December 2016, a related party loaned the Company $1,500. The note is interest free until December 31, 2017, after which time bears interest at 6%. The note matures on December 31, 2018, and requires no periodic payment until maturity. Note M In December 2016, three convertible notes payable, totaling $12,515, due to a related party were cancelled, and a new single promissory note payable in the amount of $12,515 was issued to replace the three convertible notes. The new promissory note is due on or before December 31, 2018. The note is interest free until December 31, 2017, after which time it bears interest at 6% per annum and requires no periodic payment until maturity. On January 30, 2017, 50,000 shares of the Company's common stock, valued at par, were issued to the related party in exchange for signing of the non-convertible promissory note. Note N In December 2016, two convertible notes payable, totaling $7,500, due to a related party were cancelled, and a new single promissory note payable in the amount of $7,500 was issued to replace the two convertible notes. The new promissory note is due on or before December 31, 2018. The note is interest free until December 31, 2017, after which time it bears interest at 6% per annum and requires no periodic payment until maturity. On January 30, 2017, 40,000 shares of the Company's common stock, valued at par, were issued to the related party in exchange for signing of the non-convertible promissory note. Note P In March 2017, a related party loaned the Company $2,600. The note is interest free until December 31, 2017, after which time bears interest at 6%. The note matures on December 31, 2018, and requires no periodic payment until maturity. Note Q In June 2017, a related party loaned the Company $6,323. The note is interest free and matures on December 31, 2018. The note requires no periodic payment until maturity. Note R In July 2017, three convertible notes payable, totaling $13,117, due to a related party were cancelled, and a new single promissory note payable in the amount of $13,117 was issued to replace the three convertible notes. The new promissory note is interest free and matures on December 31, 2018. The note requires no periodic payment until maturity. In exchange for signing of the non-convertible promissory note, 100,000 shares of the Company's common stock, valued at par, were issued to the related party. Note S In July 2017, a convertible note payable in the amount of $1,500 due to a related party was cancelled, and a new promissory note payable in the amount of $1,500 was issued to replace the convertible note. The new promissory note is interest free and matures on December 31, 2018. The note requires no periodic payment until maturity. In exchange for signing of the non-convertible promissory note, 10,000 shares of the Company's common stock, valued at par, were issued to the related party. Note T In July 2017, a related party loaned the Company $3,800. The note is interest free and matures on December 31, 2018. The note requires no periodic payment until maturity. Note U In August 2017, a related party loaned the Company $2,260. The note is interest free and matures on December 31, 2018. The note requires no periodic payment until maturity. All debt modifications were considered to have an immaterial impact on the fair value of the resulting debt instruments due to the nominal value of shares issued as inducements to exchange the convertible notes for non-convertible notes and the short time frames to maturity.

Note 6 - Other Related Party Tr

Note 6 - Other Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Notes
Note 6 - Other Related Party Transactions	Note 6 — Other Related Party Transactions Professional fees paid by related party In May 2017, $1,000 of professional fees associated with the preparation of the Company’s 2017 financial statements were paid by a related party on behalf of the Company. These fees were recorded as contributed capital by a related party since no consideration was paid, or will be paid, in exchange for these payments.

Note 7 - Subsequent Events

Note 7 - Subsequent Events	9 Months Ended
	Sep. 30, 2017
Notes
Note 7 - Subsequent Events	Note 7 — Subsequent Events The Company has evaluated subsequent events through the date of the filing of this interim report on Form 10-Q. Based on this evaluation, the Company did not identify any significant subsequent events that would have a material effect on the consolidated financial statements, which would require an adjustment and/or additional disclosure.

Note 3 - Summary of Significa13

Note 3 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. However, entities reporting under U.S. GAAP are not permitted to adopt the standard earlier than the original effective date of December 15, 2016. An entity should apply the guidance either retrospectively to each prior reporting period presented or retrospectively with the cumulative adjustment at the date of the initial application. The Company is currently in the process of evaluating the impact of adoption of the new accounting guidance on its consolidated financial statements and has not determined the impact of adoption on its consolidated financial statements.

Note 4 - Convertible Notes Pa14

Note 4 - Convertible Notes Payable - Related Parties: Convertible Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Convertible Debt	September 30, 2017 December 31, 2016 Convertible Note F Principal $ – $ 5,703 Debt Discount – (1,267) Convertible Note G Principal $ – $ 7,114 Debt Discount – (4,269) Convertible Note I Principal $ – $ 300 Debt Discount – (95) Convertible Note J Principal $ – $ 1,500 Debt Discount – (815) Total convertible notes payable to related parties, net of debt discounts $ – $ 8,171

Note 4 - Convertible Notes Pa15

Note 4 - Convertible Notes Payable - Related Parties: Convertible Debt (Details)	Dec. 31, 2016USD ($)
Convertible Notes Payable	$ 8,171
Convertible Note F
Convertible Notes Payable Principal	5,703
Convertible Debt Discount	(1,267)
Convertible Note G
Convertible Notes Payable Principal	7,114
Convertible Debt Discount	(4,269)
Convertible Note I
Convertible Notes Payable Principal	300
Convertible Debt Discount	(95)
Convertible Note J
Convertible Notes Payable Principal	1,500
Convertible Debt Discount	$ (815)