FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: April 30, 1998
Or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-23491
GLOBAL MEDIA CORP.
(Exact name of registrant as specified in its charter)
NEVADA 91-1842480
(State of incorporation) (IRS Employer ID No.)
83 Victoria Crescent
Nanaimo, British Columbia, Canada V9R 5B9
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (250) 716-9949
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
----- -----
As of May 15, 1998, the Registrant had 19,890,831 shares of Common
Stock outstanding.
Transitional Small Business Disclosure Format (check one);
Yes No X
----- -----
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION
AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
Part I Financial Information
------------------------------
Item 1 - Financial Statements.
For the nine months ended April 30, 1998, and 1997 (both unaudited)
and each of the years in the three year period ended July 31, 1997.
CONSOLIDATED FINANCIAL STATEMENTS
GLOBAL MEDIA CORP.
For the nine months ended April 30, 1998 and 1997
(both unaudited) and each of the years in the three year
period ended July 31, 1997
REPORT OF INDEPENDENT AUDITORS
To the Shareholders of
GLOBAL MEDIA CORP.
We have audited the consolidated balance sheets of Global Media Corp. as at
July 31, 1997 and 1996 and the consolidated statements of income (loss),
retained earnings (deficit) and cash flows for each of the years in the
three year period ended July 31, 1997. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation.
In our opinion, these consolidated financial statements present fairly, in
all material respects, the financial position of the company as at July 31,
1997 and 1996 and the results of its operations and the changes in its
financial position for each of the years in the three year period ended
July 31, 1997 in accordance with accounting principles generally accepted
in the United States of America.
Vancouver, Canada /s/
November 20, 1997 Chartered Accountants
Global Media Corp.
CONSOLIDATED BALANCE SHEETS
(in US dollars)
As at July 31,
As at ---------------------
April 30, 1998 1997 1996
$ $ $
- - -----------------------------------------------------------------------------
(Unaudited)
ASSETS
Current
Cash 12,846 121,890 15,905
Accounts receivable, net of
allowance for doubtful accounts
of $ 53342 ( July 31, 1997
13,307;1996 $ 4,058) 60,962 58,838 105,841
Inventory 6,194 15,469 35,628
Prepaid expenses 11,917 917 1,515
Advances to affiliated companies
[note 3] 75,449 77,778
Loan receivable from shareholder
[note 3] 18,203
- - -----------------------------------------------------------------------------
167,368 274,892 177,092
Capital assets [note 5] 169,687 20,566 11,420
- - -----------------------------------------------------------------------------
337,055 295,458 188,512
- - -----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued
liabilities 129,036 94,649 83,727
Accrued wages payable to
shareholder & spouse [note 3] 58,195
Taxes payable 41,700 30,124 25,195
Due to affiliated company [note 3] 1,872
Due to shareholder [note 3] 45,064 84,090 5,444
- - -----------------------------------------------------------------------------
215,800 208,863 174,433
Deferred revenue 12,062
- - -----------------------------------------------------------------------------
215,800 220,925 174,433
- - -----------------------------------------------------------------------------
Shareholders' equity
Share capital [note 6] 11,892 11,059
Additional paid in capital
[note 6] 543,525 128,641
Unissed share capital (note 6) 144,001 1
Retained earnings (deficit) (438,946) (209,145) 14,486
Cumulative translation
adjustment 4,784 (23) (408)
- - -----------------------------------------------------------------------------
121,255 74,533 14,079
- - -----------------------------------------------------------------------------
337,055 295,458 188,512
- - -----------------------------------------------------------------------------
See accompanying notes
Global Media Corp.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in US dollars)
Nine Months Ending
April 30, Years ended July 31,
---------------------- ----------------------------------
1998 1997 1997 1996 1995
$ $ $ $ $
- - --------------------------------------------------------------------------------------
(unaudited) (unaudited)
Revenue
Sales 844,882 1,382,526 1,617,528 1,745,061 552,003
Commission earned 18,362 17,083 20,204 10,154 64,250
- - --------------------------------------------------------------------------------------
863,244 1,399,609 1,637,732 1,755,215 616,253
Cost of sales 413,124 529,692 755,446 764,619 289,519
Commission paid 139,352 507,594 621,597 543,894 150,932
- - --------------------------------------------------------------------------------------
Gross margin 310,768 362,323 260,689 446,702 175,802
- - --------------------------------------------------------------------------------------
General and administrative
expenses [note 3]
Advertising and marketing 8,123 14,298 22,452 100,485 61,906
Amortization 16,678 3,333 3,957 1,917 416
Bad debts 50,495 6,127 11,131 4,096 525
Bank charges, interest
and financing fees 14,484 10,488 15,766 38,734 12,085
Foreign Exchange 7,673
Professional fees 90,746 23,723 63,003 7,888 2,004
Office and miscellaneous 125,150 139,726 180,597 90,438 58,300
Travel 26,453 14,389 26,088 16,880 6,294
Wages and benefits 200,767 87,566 46,694 140,024 35,831
- - --------------------------------------------------------------------------------------
540,569 299,650 369,688 400,462 177,361
- - --------------------------------------------------------------------------------------
Income (loss) before
provision for income
taxes (229,801) 62,673 (108,999) 46,240 (1,559)
Income taxes [note 4] 10,354
- - --------------------------------------------------------------------------------------
Net income (loss) for the
year (229,801) 62,673 (108,999) 35,886 (1,559)
- - --------------------------------------------------------------------------------------
Net income (loss) per
common share (0.01) 0.00 (0.01) 0.00 0.00
- - --------------------------------------------------------------------------------------
See accompanying notes
Global Media Corp.
CONSOLIDATED STATEMENTS OF
RETAINED EARNINGS (DEFICIT)
(in US dollars)
Nine Months Ending
April 30, Years ended July 31,
---------------------- ----------------------------------
1998 1997 1997 1996 1995
$ $ $ $ $
- - --------------------------------------------------------------------------------------
(unaudited) (unaudited)
Balance, beginning of
year (209,145) 14,486 14,486 (21,400) (6,774)
Net income (loss) for
the year (229,801) 62,673 (108,999) 35,886 (1,559)
- - --------------------------------------------------------------------------------------
(438,946) 77,159 (94,513) 14,486 (8,333)
Dividends declared and
paid (114,632) (13,067)
- - --------------------------------------------------------------------------------------
Balance, end of year (438,946) 77,159 (209,145) 14,486 (21,400)
- - --------------------------------------------------------------------------------------
See accompanying notes
Global Media Corp.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in US dollars)
Nine Months Ending
April 30, Years ended July 31,
---------------------- ----------------------------------
1998 1997 1997 1996 1995
$ $ $ $ $
- - --------------------------------------------------------------------------------------
(unaudited) (unaudited)
OPERATING ACTIVITIES
Net income (loss) for
the year (229,801) 62,673 (108,999) 35,886 (1,559)
Items not requiring an
outlay of funds
Amortization 16,678 3,333 3,957 1,917 416
Services settled through
share issuance 50,449
- - --------------------------------------------------------------------------------------
(162,674) 66,006 (105,042) 37,803 (1,143)
Changes in non-cash
operating working capital
Accounts receivable (2,124) 52,804 47,216 (103,292) (3,495)
Inventory 9,275 14,981 20,233 (17,551) (18,203)
Prepaid expenses (11,000) 858 599 (1,291)
Accounts payable and
accrued liabilities 34,387 (30,477) 11,090 29,560 54,329
Accrued wages payable (58,195) (58,527) 58,737
Taxes payable 11,576 (10,962) 5,034 12,728 12,551
Advances from (repayments
to) shareholder (39,026) (28,722) 79,266 5,358 (6,993)
Advances to/from
affiliated companies 2,329 (28,506) (80,309) 23,204 (21,075)
Deferred revenue (12,062) 12,062
- - --------------------------------------------------------------------------------------
Cash provided by (used
in) operating
activities (169,319) (22,213) (68,378) 45,256 15,971
- - --------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of capital
assets (165,414) (7,317) (13,209) (9,652) (4,165)
Decrease (increase) in
loan receivable from
shareholder 18,203 18,306 (18,372)
- - --------------------------------------------------------------------------------------
Cash provided by (used
in) investing
activities (165,414) 10,886 5,097 (28,024) (4,165)
- - --------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Dividends (114,632) (13,067)
Share subscriptions 221,267 283,700
Increase (decrease) in
bank indebtedness (6,318) 6,247
- - --------------------------------------------------------------------------------------
Cash provided by (used
in) financing
activities 221,267 0 169,068 (6,318) (6,820)
- - --------------------------------------------------------------------------------------
Effect of exchange rate
changes on cash 4,422 (736) 198 (143) 54
Increase in cash during
the year (109,044) (12,063) 105,985 10,771 5,040
Cash, beginning of
period 121,890 15,905 15,905 5,134 94
- - --------------------------------------------------------------------------------------
Cash, end of period 12,846 3,842 121,890 15,905 5,134
- - --------------------------------------------------------------------------------------
0
Cash is represented by:
Cash 12,846 121,890 121,890 15,905
Term Deposits 5,134
- - --------------------------------------------------------------------------------------
121,890 121,890 15,905 5,134
- - --------------------------------------------------------------------------------------
Interest - paid 4,470 331 357
Income taxes paid 9,278
- - --------------------------------------------------------------------------------------
See accompanying notes
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
1. NATURE OF BUSINESS AND BASIS OF PRESENTATION
Global Media Corp. (the "company") was incorporated on April 8, 1997 in the
State of Nevada and is engaged in providing internet-integrated call centre
services from its location in Nanaimo, Canada, and marketing of direct to
home satellite hardware and programming services to both commercial and
private individuals primarily in Western Canada. The Company commenced its
internet-integrated call centre operation in September of 1997.
On May 20, 1997 the Company issued 8,000,000 common shares and paid
$100,000 in cash for all of the outstanding shares of Westcoast Wireless
Cable Ltd. ("Westcoast Wireless"), a company which markets direct to home
satellite hardware and programming services.
Westcoast Wireless is contracted as an agent for the sales of certain
satellite hardware and programming services, therefore the majority of the
purchases are sourced from a single supplier.
These financial statements reflect the continuity of interests of the
former shareholder of Westcoast Wireless, due to the continuation of common
control, and are prepared on the following basis:
In the consolidated balance sheet at July 31, 1996 the assets, liabilities
and retained earnings of the Company represent the assets, liabilities and
retained earnings of Westcoast Wireless at that date.
The consolidated statements of income (loss), retained earnings (deficit),
and cash flows for the years ended July 31, 1995 and 1996 and for the
period from August 1, 1996 to May 20, 1997 (included in the results for the
year ended July 31, 1997) as well as the unaudited nine month period ended
April 30, 1997 represent the results of operations and changes in
financial position of Westcoast Wireless during that period.
References to "the Company" in these financial statements include Westcoast
Wireless (for events occurring prior to May 20, 1997).
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles in the United States of America.
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
2. SIGNIFICANT ACCOUNTING POLICIES
INVENTORY
Inventory is recorded at the lower of actual cost, using the first in,
first out method, and net realizable value.
CAPITAL ASSETS AND AMORTIZATION
Capital assets are recorded at cost. Amortization has been calculated
using the methods and rates as follows, except in the year of acquisition
when one half of the rate is used.
Call centre infrastructure 20% declining balance
Office furniture and equipment 20% declining balance
Software 20% declining balance
Computer equipment 30% declining balance
Leasehold improvements 5 year straight line
REVENUE RECOGNITION
Revenues are recorded at the time of installation for hardware sales, and
at contract inception for sales of programming.
Revenues from the Call Centre are recognized on a straight line basis over
the length of the contract.
FOREIGN CURRENCY TRANSLATION
The assets and liabilities of the Company's foreign subsidiary, Westcoast
Wireless, are translated into US dollars at fiscal year and exchange rates.
Income and expense items are translated at average exchange rates
prevailing during the fiscal year. The resulting translation adjustments
are recorded as a separate component of shareholders' equity.
Monetary assets and liabilities of the Company denominated in a foreign
currency are translated at period end exchange rates. Other balances are
recorded at rates in effect on the dates of the transaction. Exchange
gains and losses arising are reflected in net income for the period.
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
2. SIGNIFICANT ACCOUNTING POLICIES (contend)
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires the Company's
management to make estimates and assumptions that affect the amounts
reported in the consolidated financial statements and related notes to the
financial statements. Actual results may differ from those estimates.
FINANCIAL INSTRUMENTS
The financial instruments of the Company are carried at values which
approximate fair value.
3. RELATED PARTY TRANSACTIONS
April 30, July 31,
1998 1997 1996
$ $ $
- - -----------------------------------------------------------------------------
(unaudited)
Loan receivable from shareholder
and spouse - - 18,203
Advances to affiliated companies 75,449 77,778 -
Due to affiliated company - - (1,872)
Due to shareholder (45,064) (84,090) (5,444)
Accrued wages payable to
shareholder and spouse - - (58,195)
- - -----------------------------------------------------------------------------
The loan receivable from the shareholder was non-interest bearing and was
fully repaid on January 31, 1997.
Other related party balances are non-interest bearing and without specific
terms of repayment.
The affiliated companies are related to Global Media Corp. through common
control. The fair value of the balances are not determinable since they
have no fixed repayment terms.
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
3. RELATED PARTY TRANSACTIONS (cont'd)
During the nine months ended April 30, 1998, the Company's consolidated
statement of income (loss) includes the following related party
transactions:
* wages and benefits expense $64,269 [1997 - $53,513], to a shareholder
and spouse.
* income from recharge of wages $ nil [1997 - $ 72,610], to a company
related through common control.
During the year ended July 31, 1997 the Company's statement of income
(loss) includes the following related party transactions:
* advertising and marketing expense $nil [1996 - $73,421; 1995 -
$20,237], to a company related through common control.
* wages and benefits expense $45,565 [1996 - $147,752; 1995 - $33,859],
to a shareholder and spouse.
* income from recharge of wages of $72,610 [1996 - $19,824; 1995 -
$nil], to a company related through common control.
4. INCOME TAXES
The actual income tax expense attributable to earnings for the years ended
July 31, 1997, 1996 and 1995 and the nine month periods ended April 30,
1998 and 1997 differed from the amounts computed by applying combined
statutory income tax rates to pretax earnings as a result of the following;
April 30, July 31,
--------------------- -----------------------------------
1998 1997 1997 1996 1995
$ $ $ $ $
- - --------------------------------------------------------------------------------------
(unaudited) (unaudited)
Tax provision at
combined statutory
income tax rate (37,923) (2,684) (16,694) 10,173 (343)
Benefit of operating
loss carryforwards - - - (719) -
Other, net - - - 900 -
Losses for which no
tax benefit has
been recognized 37,923 2,684 16,694 - 343
- - --------------------------------------------------------------------------------------
- - - 10,354 -
- - --------------------------------------------------------------------------------------
At July 31, 1997 the Company has operating loss carryforwards available to
reduce future taxable income. $ 24,857 expires in 2004 and $ 25,297
expires in 2005. A deferred tax asset has not been recognized in respect
of these amounts as their future utilization does not meet the more likely
than not' test prescribed by Financial Accounting Standard No. 109.
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
5. CAPITAL ASSETS
Accumulated Net Book
Cost Amortization Value
$ $ $
- - -----------------------------------------------------------------------------
APRIL 30, 1998 (unaudited)
Office furniture and equipment 19,440 4,292 15,148
Computer equipment 58,480 8,511 49,969
Leasehold improvements 8,640 1,081 7,559
Call Center Infrastructure 83,473 6,261 77,212
Software 22,019 2,220 19,799
- - -----------------------------------------------------------------------------
192,052 22,365 169,687
- - -----------------------------------------------------------------------------
JULY 31, 1997
Office furniture and equipment 9,794 2,576 7,218
Computer equipment 8,814 2,187 6,627
Leasehold improvements 2,029 709 1,320
Software 6,001 600 5,401
- - -----------------------------------------------------------------------------
26,638 6,072 20,566
- - -----------------------------------------------------------------------------
JULY 31, 1996
Office furniture and equipment 8,917 1,439 7,478
Computer equipment 3,404 510 2,894
Leasehold improvements 1,415 367 1,048
- - -----------------------------------------------------------------------------
13,736 2,316 11,420
- - -----------------------------------------------------------------------------
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
6. SHARE CAPITAL
Apr. 30, 1998 July 31, '97 July 31, '96
# # #
- - ------------------------------------------------------------------------------
AUTHORIZED
Common shares, par value
of $0.001 each 200,000,000 200,000,000 200,000,000
ISSUED
Common shares 19,890,831 11,059,400
Unissued common shares 8,288,000 8,000,000
- - ------------------------------------------------------------------------------
ISSUED:
Additional
Common Share Paid in
Shares Capital Capital
# $ $
- - ------------------------------------------------------------------------------
At April 30, 1998
Common Shares 11,059,400 11,059 128,641
Common shares issued for cash 730,533 731 364,536
Common shares issued for
other than cash consideration: - - -
Consideration for shares in
Westcoast Wireless (note 1) 8,000,000 1 -
In kind services 100,898 101 50,348
- - ------------------------------------------------------------------------------
At April 30, 1998 (unaudited)
Common shares 19,890,831 11,892 543,525
- - ------------------------------------------------------------------------------
As at July 31, 1997, 8,000,000 shares issued in consideration for the
shares in Westcoast Wireless and 288,000 of the shares issued for cash had
not been issued; however, legal agreement for the issue of these shares
were in place at July 31, 1997, therefore the amounts were recorded as
unissued share capital of $1 and $144,000 respectively as at July 31, 1997.
All of these shares were issued in the five month period ended December 31,
1997.
As at December 31, 1997, 42,898 common shares have been issued in kind for
rent of property while the remaining 58,000 have been issued in exchange
for professional services (8,000), consulting (14,200) and wiring the
computer and telephone infrastructure at the call centre (35,800). In
addition, 442,533 were issued for cash in the first five month period
ending December 31, 1997.
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
6. SHARE CAPITAL (con't)
Effective April 8, 1997 the company adopted, subject to shareholder
approval, the 1997 Directors and Officers Stock Option Plan (the "Plan).
The Plan is administered by the Board of Directors who have sole discretion
and authority to determine individuals eligible for awards under the Plan.
The Plan provides for issuance of a total of 500,000 options with an
exercise price of US$0.50 per share, within a period of 10 years from the
effective date. The conditions of exercise of each grant are determined
individually by the Board at the time of the grant.
At April 30, no options were outstanding under the Plan.
7. SEGMENTED INFORMATION
The Company's business operations are grouped into two industry segments:
Satellite Sales & Service - Westcoast Wireless Cable
Principally the marketing of direct to home satellite hardware and
programming services to both commercial and private individuals primarily
in Western Canada. Westcoast Wireless Cable commenced operations in the
1995 fiscal year.
CALL CENTER SERVICES - GLOBAL MEDIA CALL CENTER
Principally in providing internet integrated call centre services to US
based clients from its location in Nanaimo, Canada. The Global Medial Call
Centre commenced operations in September of 1997.
Nine Months Ended Nine months Year
April 3, 1998 ended ended
- - --------------------------------------------------------------------------------------
Call Center Cable Consolidated April 30, July 31,
1997 1997
$ $ $ $ $
- - --------------------------------------------------------------------------------------
(unaudited)(unaudited)
Total revenue 261,954 601,290 863,244 1,399,608 1,637,732
Net Income (loss) (22,758) (207,043) (229,801) (62,673) (108,999)
Amortization 14,093 2,585 16,678 3,333 3,957
Identifiable assets 219,157 117,898 337,055 120,057 295,458
Capital expenditures 161,310 4,104 165,414 7,032 13,209
- - --------------------------------------------------------------------------------------
Global Media Corp.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
All amounts as of April 30, 1998 and for the nine (in US dollars)
months ended April 30, 1998 and 1997 are unaudited.
8. COMMITMENTS AND CONTINGENCIES
(a) Global Media entered into a commercial lease for office space
effective October 1, 1997, and will pay a total of $ 31,972 per year for
the next five years ending September 30, 2002.
(b) Following a decision by the Federal Court of Appeal of Canada in
November 1997, with respect to the sale of US satellite and programming
services in Canada, the management of Westcoast Wireless decided to
withdraw from this business, and to terminate its existing warranty
agreements for such equipment. It is management's opinion that fulfillment
of the warranty agreements would involve the Company transacting in illegal
business, and that any liability resulting for this decision would not have
a significant adverse effect on the financial position of the Company.
Item 2 - Management's Discussion and Analysis or Plan of Operation.
(a) Liquidity
In the quarter, the Company made strides toward improving its liquidity.
The call center operation was able to reach a break-even level for the
third quarter ending April 30, 1998. The Company was able to reduce
overhead by approximately $25,000/month by closing the Aldergrove office.
The Aldergrove office was no longer required because the Company was no
longer importing US satellite dishes for sale in Canada; operations were
centralilzed at the Nanaimo office.
(b) Capital Resources
The Company continues to meet its obligations. The decrease in cash flow
for the nine months ended April 30, 1998 was $109,044. The Company has
continued to invest in developing its communications center. Purchase of
capital assets for the nine months ended April 30, 1998 totaled $165,414.
The Company is in the process of seeking long term debt financing using its
wholly owned assets of the call center as collateral under a lease/buy-back
program. If favorable terms can be obtained, the proceeds, not expected to
exceed $100,00, be will be used to purchase new equipment and for working
capital. The Company has been able to meet its current cash needs through
operations. The Company has not sought funding thorugh any outside sources
for the third quarter ending April 30, 1998.
(c) Results of Operations
For the three months ending April 30, 1998, the Company incurred a net loss
of $1,801 and now has a net loss for the nine months ending April 30, 1998,
of $229,801. Sales for the quarter ending April 30, 1998 were $152,000
contributing to total revenue of $863,000 for the nine month period ending
April 30, 1998. While the Company continues to invest in its call center
infrastructure and add strength to its existing database, the Company has
been able to reach a break even stage of operations during the third
quarter.
Part II - Other Information
---------------------------
Item 1 - Legal Proceedings.
There are no proceedings to report.
Item 2. - Changes in Securities.
There are no changes to report.
Item 3. - Default Upon Senior Securities.
There are no defaults to report.
Item 4. - Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of Security holders during the
third quarter of fiscal 1998.
Item 5. - Other Information.
The Registrant filed its Amendment Number 1 to Form 10-SB on May 16,
1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
GLOBAL MEDIA CORP.
Dated: June 17, 1998
/s/Michael Metcalfe
Michael Metcalfe
Chairman, President, Secretary and Treasurer
/s/Robert Fuller
Robert Fuller
Director, Chief Executive Officer
/s/Winston V. Barta
Winston V. Barta
Director, Vice President of Marketing and
Business Development
/s/Dennis Morgan
Dennis Morgan
Director
/s/Jack D. McDonald
Jack D. McDonald
Director