Original Source Music (OSMU) 10-Q 20 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended	6 Months Ended
	Jun. 30, 2018shares	Jun. 30, 2018shares
Document and Entity Information:
Entity Registrant Name		Original Source Music, Inc.
Document Type		10-Q
Document Period End Date		Jun. 30, 2018
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	5,073,000
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		2,018
Document Fiscal Period Focus		Q2
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Aug. 20, 2009

Original Source Music, Inc. - B

Original Source Music, Inc. - Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Prepayment		$ 500
Cash		567
Total Currents Assets		1,067
Total Assets		1,067
Current Liabilities:
Accounts payable and accrued expenses	$ 1,200	4,600
Due to a related party	14,320
Notes payable, related party		64,410
Total Liabilities	15,520	69,010
Stockholders' Deficit
Preferred stock
Common stock	5,073	5,073
Additional paid-in capital	37,070	37,070
Other reserve	64,410
Accumulated deficit	(122,073)	(110,086)
Total Stockholders' Deficit	$ (15,520)	(67,943)
Total Liabilities and Stockholders' Deficit		$ 1,067

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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	5,073,000	5,073,000
Common Stock, Shares Outstanding	5,073,000	5,073,000

Original Source Music, Inc. - S

Original Source Music, Inc. - Statements of Operations - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement
Revenue			$ 75	$ 10	$ 196
Other income				1,117
Operating Expenses:
General and administrative			174	594	349
Professional fees		$ 11,320	6,023	12,520	9,823
Total operating expenses		11,320	6,197	13,114	10,172
Loss from operations		(11,320)	(6,122)	(11,987)	(9,976)
Interest expense, related parties			(1,527)		(4,312)
Loss before income taxes		(11,320)	(7,649)	(11,987)	(14,288)
Income tax provision
Net loss		$ (11,320)	$ (7,649)	$ (11,987)	$ (14,288)
Net loss per common share basic and diluted	[1]	$ 0	$ 0	$ 0	$ 0
Weighted number of common shares outstanding - basic and diluted		5,073,000	5,073,000	5,073,000	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. - Statements of Cash Flows - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (7,649)	$ (11,987)	$ (14,288)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount			4,312
Changes in operating assets and liabilities:
Prepayment, increase decrease		500
Accounts payable and accrued expenses, increase decrease		(3,400)	1,000
Net cash used in operating activities		(14,887)	(8,976)
Cash flows from financing activities:
Advance from a related party		14,320
Proceeds from issuance of notes payable, related party			8,923
Net cash provided by financing activities		14,320	8,923
Net Decrease in Cash and Cash Equivalents		(567)	(53)
Cash and cash equivalents, beginning of period		567	842
Cash and cash equivalents, end of period	$ 789		789
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for income taxes

NOTE 1 - NATURE OF OPERATIONS A

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
Notes
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Original Source Music, Inc was incorporated under the laws of the State of Nevada on August 20, 2009, and established a fiscal year ended of December 31. The Company was formed to license songs to the television and movie industry. The Company was a wholly owned subsidiary of Original Source Entertainment, Inc., a publicly traded Nevada corporation. On February 5, 2014, the board of directors of Original Source Entertainment authorized the spin-off of the registrant to shareholders of record as of February 25, 2014. On March 19, 2018, the Company’s board of directors and officer sold their interest in the Company to Big Emperor, Ltd. a British Virgin Islands company (“Big Emperor”). The total number of shares purchased was 3,500,000 shares of common stock (the “Shares”) of Original Source Music, Inc. (the “Company”) for $93,800.00 (the “Transaction”). Of the Shares, 3,000,000 were acquired from Lecia L. Walker (“Ms. Walker”), the Company’s chief executive officer and a director, and 500,000 were acquired from Esther Lynn Atwood (“Ms. Atwood”), a company director. The Shares represent approximately 69% of the Company’s issued and outstanding common stock. Along with the Transaction, the Company’s board of directors appointed Tsang Chi Hin, age 59, as its chief executive officer (the “CEO”), and as director to hold office until the next annual meeting of shareholders and until his successor is duly elected and qualified or until his resignation or removal. Following the appointment of Mr. Tsang as an officer and director of the Company, Ms. Walker resigned her position as our chief executive officer and director and Ms. Atwood resigned her position as director. Both resignations are effective as of March 19, 2018. With the proceeds from the acquisition of the Shares, Ms. Walker and Ms. Atwood agreed to pay $64,410 to holders of promissory notes issued by the Company in full satisfaction of principal and interest in all outstanding promissory notes issued by the Company. On March 19, 2018, all the Promissory Notes K through Promissory Note W, inclusive, were paid in full. Ms. Walker and Ms. Atwood have waived all amounts due by the Company at March 19, 2018. The Company has decided to not pursue its original business plan and is currently in the process of evaluating new business opportunities. The CEO of the Company is exploring such options. These condensed financial statements have been prepared on a going concern basis. The Company has incurred net operating losses of $11,987 from inception through June 30, 2018 and has not yet established on going source of revenues sufficient to cover its operating costs and allow it continue as a going concern. As of June 30, 2018, the Company had an accumulated deficit totaling $122,073. The ability of the Company to continue as a going concern is dependent on the Company obtaining the adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. This raises substantial doubts about its ability to continue as a going concern. Basis of Presentation The financial statements present the condensed balance sheets, condensed statements of operations and condensed statement of cash flows of the Company. These financial statements are presented in the United States dollars and have been prepared in accordance with generally accepted accounting principles in the United States of America. Unaudited Condensed Financial Statements The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The unaudited condensed financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Net Loss per Common Share Basic loss per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Fully diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the six months ended June 30, 2018 or June 30, 2017. Income Taxes The Company accounts for income taxes pursuant to FASB ASC 740. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statements classification of the assets and liabilities generating the differences. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. Fair Value of Financial Instruments The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts the Company could realize in a current market exchange. As of June 30, 2018 the carrying value of accounts payable and accrued expenses and due to a related party approximated to the fair value due to the short-term nature and maturity of these instruments. Estimates The financial statements are prepared on the basis of generally accepted accounting principles in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates made by management. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. The new standard requires that an entity 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. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a one-year deferral of the effective date of this standard to annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2017. The adoption of this guidance did not have a significant impact on the Company’s financial statements.

NOTE 2 - PROMISSORY NOTES PAYAB

NOTE 2 - PROMISSORY NOTES PAYABLE - RELATED PARTY	6 Months Ended
	Jun. 30, 2018
Notes
NOTE 2 - PROMISSORY NOTES PAYABLE - RELATED PARTY	NOTE 2 – PROMISSORY NOTES PAYABLE – RELATED PARTY Note K: On December 31, 2016, a related party loaned the Company $4,920. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note L: On December 31, 2016, a related party loaned the Company $1,500. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note M: On December 31, 2016 Convertible Promissory Note A in the amount of $3,255 dated December 31, 2014 and, Convertible Promissory Note B in the amount of $6,000 dated January 21, 2015 and Convertible Promissory Note D in the amount of $3,260 dated September 14, 2015, were cancelled and a new single note was issued to replace the three promissory notes in the amount of $12,515. The new note is payable to a related party, Venture Vest Capital Corporation and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 50,000 shares of the authorized but unissued common stock of the corporation will be issued to Venture Vest Capital Corporation within 30 days of the signing of the promissory note valued at par. During the year ended December 31, 2017, Venture Vest Capital Corporation declined to accept 50,000 shares of the authorized but unissued common stock of the Company. Accordingly, the paid-in capital was increased by $50. All are paid-in-full during the six months ended June 30, 2018. Note N: On December 31, 2016, Convertible Promissory Note C in the amount of $6,000 dated March 30, 2015 and, Convertible Promissory Note E in the amount of $1,500 dated June 11, 2015, were cancelled and a new single note was issued to replace the two promissory notes in the amount of $7,500. The new note is payable to Terayco Enterprises Ltd., a related party and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 40,000 shares of the authorized but unissued common stock of the corporation will be issued to Terayco Enterprises Ltd. within 30 days of the signing of the promissory note valued at par. During the year ended December 31, 2017, Terayco Enterprises Ltd. declined to accept 40,000 shares of the authorized but unissued common stock of the Company. Accordingly, the paid-in capital was increased by $40. All are paid-in-full during the six months ended June 30, 2018. Note P: On March 21, 2017, a related party loaned the Company $2,600. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note Q: On June 29, 2017, a related party loaned the Company $6,323. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note R: On December 31, 2017 Convertible Promissory Note F in the amount of $5,703 dated February 16, 2016 and, Convertible Promissory Note G in the amount of $7,114 dated May 6, 2016 and Convertible Promissory Note I in the amount of $300 dated June 13, 2016, were cancelled and a new single note was issued to replace the three promissory notes in the amount of $13,117. The new note is payable to a related party, Terayco Enterprises Ltd. and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 100,000 shares of the authorized but unissued common stock of the corporation will be issued to Terayco Enterprises Ltd. within 30 days of the signing of the promissory note valued at par. All are paid-in-full during the six months ended June 30, 2018. Note S: On December 31, 2017 Convertible Promissory Note J in the amount of $1,500 dated July 7, 2016 was cancelled and a new single note was issued to replace the promissory note. The new note is payable to a related party, Venture Vest Capital Corporation and is due on or before December 31, 2018. The note is interest free until December 31, 2018 after which time it shall bear interest at the rate of 6% per annum and requires no periodic payment until maturity. 10,000 shares of the authorized but unissued common stock of the corporation will be issued to Venture Vest Capital Corporation within 30 days of the signing of the promissory note valued at par. All are paid-in-full during the six months ended June 30, 2018. Note T: On July 22, 2017, a related party loaned the Company $3,800. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note U: On August 25, 2017, a related party loaned the Company $2,260. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note V: On October 4, 2017, a related party loaned the Company $3,875. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018. Note W: On December 24, 2017, a related party loaned the Company $4,500. The note is interest free until December 31, 2018 after which time it’ll bear interest at 6%. The note matures on December 31, 2018 and requires no periodic payment until maturity. All are paid-in-full during the six months ended June 30, 2018.

NOTE 3 - CAPITAL STOCK

NOTE 3 - CAPITAL STOCK	6 Months Ended
	Jun. 30, 2018
Notes
NOTE 3 - CAPITAL STOCK	NOTE 3 – CAPITAL STOCK The Company’s capitalization is 5,073,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued. During the six months ended June 30, 2018 and June 30, 2017, the Company did not issue any additional common stock shares.

NOTE 4 - SUBSEQUENT EVENTS

NOTE 4 - SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2018
Notes
NOTE 4 - SUBSEQUENT EVENTS	NOTE 4 – SUBSEQUENT EVENTS Subsequent to the balance sheet date, the Company did not have any material recognizable events.

NOTE 1 - NATURE OF OPERATIONS10

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Basis of Presentation	Basis of Presentation The financial statements present the condensed balance sheets, condensed statements of operations and condensed statement of cash flows of the Company. These financial statements are presented in the United States dollars and have been prepared in accordance with generally accepted accounting principles in the United States of America.

NOTE 1 - NATURE OF OPERATIONS11

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Unaudited Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Unaudited Financial Statements	Unaudited Condensed Financial Statements The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The unaudited condensed financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.

NOTE 1 - NATURE OF OPERATIONS12

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Net Loss Per Common Share (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Net Loss Per Common Share	Net Loss per Common Share Basic loss per share is computed by dividing the net loss attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the period. Fully diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the six months ended June 30, 2018 or June 30, 2017.

NOTE 1 - NATURE OF OPERATIONS13

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Income Taxes (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Income Taxes	Income Taxes The Company accounts for income taxes pursuant to FASB ASC 740. Deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statements classification of the assets and liabilities generating the differences. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the realizability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.

NOTE 1 - NATURE OF OPERATIONS14

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Fair Value of Financial Instruments (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company estimates the fair value of financial instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value. Accordingly, the estimates of fair value may not be indicative of the amounts the Company could realize in a current market exchange. As of June 30, 2018 the carrying value of accounts payable and accrued expenses and due to a related party approximated to the fair value due to the short-term nature and maturity of these instruments.

NOTE 1 - NATURE OF OPERATIONS15

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Estimates (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Estimates	Estimates The financial statements are prepared on the basis of generally accepted accounting principles in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates made by management.

NOTE 1 - NATURE OF OPERATIONS16

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION: Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2018
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. The new standard requires that an entity 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. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a one-year deferral of the effective date of this standard to annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2017. The adoption of this guidance did not have a significant impact on the Company’s financial statements.

NOTE 1 - NATURE OF OPERATIONS17

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details)	3 Months Ended
	Jun. 30, 2018
Details
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Aug. 20, 2009

NOTE 3 - CAPITAL STOCK (Details

NOTE 3 - CAPITAL STOCK (Details) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Details
Common Unit, Outstanding	5,073,000
Common Stock, Par Value	$ 0.001	$ 0.001