Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2021 | Jan. 10, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | ALMOST NEVER FILMS INC. | |
Entity Central Index Key | 0001422768 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Dec. 31, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 5,798,765 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation State Country Code | NV | |
Entity Interactive Data Current | No | |
Entity Tax Identification Number | 26-1665960 | |
Entity Address Address Line 1 | 8605 Santa Monica Blvd #98258 | |
Entity Address City Or Town | West Hollywood | |
Entity Address State Or Province | CA | |
Entity Address Postal Zip Code | 90069-4109 | |
Local Phone Number | 296-3005 | |
City Area Code | 213 | |
Security 12g Title | Common Stock, $.001 par vale | |
Trading Symbol | HLWD |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 18,782 | $ 138,482 |
Total Current Assets | 18,782 | 138,482 |
Property and equipment, net | 6,115 | 0 |
Film costs | 85,496 | 85,496 |
TOTAL ASSETS | 110,393 | 223,978 |
Current Liabilities | ||
Accounts payable and accrued expenses | 87,548 | 75,708 |
Due to related party | 31,189 | 83,799 |
Interest payable | 121,713 | 122,673 |
Deferred film revenue - related party | 100,000 | 100,000 |
Promissory note payable | 78,820 | 78,820 |
Promissory note payable - related party | 60,000 | 60,000 |
Total Current Liabilities | 479,270 | 521,000 |
TOTAL LIABILITIES | 479,270 | 521,000 |
Stockholders' Equity (Deficit) | ||
Preferred stock: no par value, 5,000,000 authorized; Series A Preferred stock: 2,000,000 authorized; No shares issued and outstanding | 0 | 0 |
Common stock: 25,000,000 authorized; $0.001 par value, 5,798,765 shares issued and outstanding | 5,799 | 5,799 |
Additional paid in capital | 1,895,486 | 1,895,486 |
Accumulated deficit | (2,270,162) | (2,196,358) |
Total stockholders' deficit attributable to Almost Never Films Inc. shareholders | (368,877) | (295,073) |
Non-controlling interest | 0 | (1,949) |
Total stockholders' deficit | (368,877) | (297,022) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 110,393 | $ 223,978 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Jun. 30, 2021 |
Stockholders' Equity (Deficit) | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 5,798,765 | 5,798,765 |
Common stock, shares outstanding | 5,798,765 | 5,798,765 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Expenses | ||||
General and administration expenses | $ 21,224 | $ 26,562 | $ 37,073 | $ 47,539 |
Professional fees | 20,714 | 504 | 66,543 | 21,504 |
Total operating expenses | 41,938 | 27,066 | 103,616 | 69,043 |
Loss from operations | (41,938) | (27,066) | (103,616) | (69,043) |
Other (Expense) Income | ||||
Gain on investment | 30,000 | 30,000 | 0 | 0 |
Interest expense | (6,212) | (8,665) | (12,156) | (17,555) |
Loss on disposal of subsidiaries | (776) | 0 | (776) | 0 |
Gain on interest payable waived | 0 | 0 | 12,726 | 0 |
Total other income (expense), net | (23,012) | (8,665) | 29,704 | (17,555) |
Net loss before income taxes | (18,926) | (35,731) | (73,822) | (86,598) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (18,926) | (35,731) | (73,822) | (86,598) |
Net loss attributable to: | ||||
Almost Never Films Inc. | (18,908) | (35,731) | (73,804) | (86,286) |
Non-controlling interest | (18) | 0 | (18) | (312) |
Comprehensive Loss | (18,926) | (35,731) | (73,822) | (86,598) |
Loss from continuing operations | (18,646) | (35,371) | (73,422) | (82,763) |
Loss from discontinued operations, net of tax | (280) | (360) | (400) | (3,835) |
Net loss | $ (18,926) | $ (35,731) | $ (73,822) | $ (86,598) |
Net Loss from continuing operations Per Common Share - Basic and Diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Net Loss from discontinued operations Per Common Share - Basic and Diluted | 0 | 0 | 0 | 0 |
Net Loss per share attributable to Common stockholders of the Company -Basic and Diluted | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted Average Common Shares Outstanding - Basic and Diluted | 5,798,765 | 5,798,765 | 5,798,765 | 5,798,765 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Non-controlling Interest [Member] |
Balance, shares at Jun. 30, 2020 | 5,798,765 | ||||
Balance, amount at Jun. 30, 2020 | $ (168,873) | $ 5,799 | $ 1,895,486 | $ (2,068,521) | $ (1,637) |
Net loss | (50,867) | $ 0 | 0 | (50,555) | (312) |
Balance, shares at Sep. 30, 2020 | 5,798,765 | ||||
Balance, amount at Sep. 30, 2020 | (219,740) | $ 5,799 | 1,895,486 | (2,119,076) | (1,949) |
Balance, shares at Jun. 30, 2020 | 5,798,765 | ||||
Balance, amount at Jun. 30, 2020 | (168,873) | $ 5,799 | 1,895,486 | (2,068,521) | (1,637) |
Net loss | (86,598) | ||||
Balance, shares at Dec. 31, 2020 | 5,798,765 | ||||
Balance, amount at Dec. 31, 2020 | (255,471) | $ 5,799 | 1,895,486 | (2,154,807) | (1,949) |
Balance, shares at Sep. 30, 2020 | 5,798,765 | ||||
Balance, amount at Sep. 30, 2020 | (219,740) | $ 5,799 | 1,895,486 | (2,119,076) | (1,949) |
Net loss | (35,731) | $ 0 | 0 | (35,731) | 0 |
Balance, shares at Dec. 31, 2020 | 5,798,765 | ||||
Balance, amount at Dec. 31, 2020 | (255,471) | $ 5,799 | 1,895,486 | (2,154,807) | (1,949) |
Balance, shares at Jun. 30, 2021 | 5,798,765 | ||||
Balance, amount at Jun. 30, 2021 | (297,022) | $ 5,799 | 1,895,486 | (2,196,358) | (1,949) |
Net loss | (54,896) | $ 0 | 0 | (54,896) | 0 |
Balance, shares at Sep. 30, 2021 | 5,798,765 | ||||
Balance, amount at Sep. 30, 2021 | (351,918) | $ 5,799 | 1,895,486 | (2,251,254) | (1,949) |
Balance, shares at Jun. 30, 2021 | 5,798,765 | ||||
Balance, amount at Jun. 30, 2021 | (297,022) | $ 5,799 | 1,895,486 | (2,196,358) | (1,949) |
Net loss | (73,822) | ||||
Balance, shares at Dec. 31, 2021 | 5,798,765 | ||||
Balance, amount at Dec. 31, 2021 | (368,877) | $ 5,799 | 1,895,486 | (2,270,162) | 0 |
Balance, shares at Sep. 30, 2021 | 5,798,765 | ||||
Balance, amount at Sep. 30, 2021 | (351,918) | $ 5,799 | 1,895,486 | (2,251,254) | (1,949) |
Net loss | (18,926) | $ 0 | 0 | (18,908) | (18) |
Derecognition of non-controlling interest upon disposition of subsidiaries | 1,967 | 1,967 | |||
Balance, shares at Dec. 31, 2021 | 5,798,765 | ||||
Balance, amount at Dec. 31, 2021 | $ (368,877) | $ 5,799 | $ 1,895,486 | $ (2,270,162) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (73,822) | $ (86,598) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on interest payable waived | (12,726) | 0 |
Loss on disposal of subsidiaries | 776 | 0 |
Depreciation of property and equipment | 19 | 0 |
Accrued interest on promissory notes payable | 11,766 | 17,536 |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 12,538 | 3,604 |
Interest paid on promissory notes payable | 0 | (6,023) |
Net Cash used in Operating Activities | (61,449) | (71,481) |
Cash Flows from Investing Activities: | ||
Acquisition of property and equipment | (6,134) | 0 |
Net cash paid in disposal of subsidiaries | (7) | 0 |
Net Cash Used in Investing Activities | (6,141) | 0 |
Cash Flows from Financing Activities: | ||
Borrowing from related party | 31,189 | 0 |
Repayment of note payable | 0 | (3,977) |
Repayment of related party advances | (83,299) | 0 |
Net Cash Used in Financing Activities | (52,110) | (3,977) |
Net decrease in cash and cash equivalents | (119,700) | (75,458) |
Cash and Cash Equivalents, beginning of period | 138,482 | 80,510 |
Cash and Cash Equivalents, end of period | 18,782 | 5,052 |
Supplemental Disclosure Information: | ||
Cash paid for interest | 390 | 6,023 |
Cash paid for income taxes | $ 0 | $ 0 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 6 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND OPERATIONS | |
NOTE 1 - ORGANIZATION AND OPERATIONS | NOTE 1 – ORGANIZATION AND OPERATIONS Nature of the Business Almost Never Films Inc. (the “Company”) was originally incorporated in Nevada in October 2007 as Smack Sportswear (“Smack”), which originally manufactured and sold performance and lifestyle based indoor and sand volleyball apparel and accessories. The Company is now an independent film company focusing on film production, finance and production related services for movies under budgets of $35 million. The Company’s common stock are currently traded on OTC Pink under the symbol of “HLWD.” On January 15, 2016, Smack entered into a share exchange agreement with Almost Never Films Inc., a private company incorporated in Indiana on July 8, 2015, and its two shareholders, Danny Chan and Derek Williams. Pursuant to the agreement, Smack issued 1,000,000 shares of our Series A Convertible Preferred Stock to Mr. Chan and Mr. Williams in exchange for all 2,500,000 shares of issued and outstanding common stock of Almost Never Films Inc. (Indiana). As a result of the share exchange, Almost Never Films Inc. (Indiana) became Smack’s wholly-owned subsidiary, and Mr. Chan and Mr. Williams acquired a controlling interest in the Company. The share exchange was accounted for as a “reverse acquisition,” and resulted in a recapitalization. Almost Never Films Inc. (Indiana) is deemed to be the acquirer for accounting purposes. In March 2016, the Company increased the authorized capital to 5,000,000 shares of common stock and changed the name of the Company to “Almost Never Films Inc.” upon the approval from stockholders of the company. On August 9, 2017, the Company has approved a 1-for-40 reverse split of its issued and outstanding common stock. The common stock accounts and all share related balances have been applied retroactively for all periods presented. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Team Sports Superstore (Inactive), Almost Never Films Inc. (Indiana), Virginia Christmas, LLC (New York), Christmas Camp, LLC (New York). Its 90% owned subsidiaries are One HLWD KY LLC (Kentucky), Two HLWD KY LLC (Kentucky) and Three HLWD KY (Kentucky), LLC. All significant intercompany transactions and balances have been eliminated in consolidation. Discontinued operations On October 18, 2021 both One HLWD KY LLC and Three HLWD KY LLC were dissolved. On December 13, 2021, the Company sold Virginia Christmas and Christmas Camp to an officer of the Company (see Note 7). As a result of such transactions, the Company no longer controls such entities and their historical results are presented as discontinued operations in the consolidated statements of operations and comprehensive loss. Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, these condensed financial statements do not include all 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 financial statements not misleading have been included. The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing the fair value of common stock issued for services, film costs, among others. Actual results could differ from these estimates. Film Costs, Net The Company records film costs in accordance with ASC – 926 - Entertainment – Films Revenue Recognition The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation. When the Company enters into a contract, the Company analyses the services required in the contract in order to identify the required performance obligations which would indicate the Company has met and fulfilled its obligations. For the current contracts in place, the Company has identified performance obligations as one single event, the sign-off by both parties that production is completed and the product (film) is ready for distribution. To appropriately identify the performance obligations, the Company considers all of the services required to be satisfied per the contract, whether explicitly stated or implicitly implied. The Company allocates the full transaction price to the single performance obligation being satisfied. The Company recognizes revenue when the customer confirms to the Company that all of the terms and conditions of the contract has been met, and the sign-off of the project has been completed. The Company derives its revenues from the follows: · Production Service Agreement Revenue is related to films where the Company has been engaged as an independent contractor to provide production services and other elements related to production for individual film projects. · Revenue from self-produced films is related to films where the Company has self-produced certain films along with a third party, with the expectation that these films will be distributed in the future. The Company analyses whether gross sales, or net sales should be recorded, has control over establishing price, and has control over the related costs with earning revenues. The Company has recorded all revenues at the gross price. Cash payments received are recorded as deferred revenue until the conditions, stated above, of revenue recognition have been met, specifically all obligations have been met as specified in the related customer contract. Recently Issued Accounting Pronouncements Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying condensed consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the six months ended December 31, 2021, the Company incurred a net loss of $73,822. As of December 31, 2021, the Company had a working capital deficiency of $460,488 and an accumulated deficit of $2,270,162. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion and an identification of new business opportunities. The Company plans on raising the required funds through completion of film projects resulting in revenues, and further potential equity and debt offerings. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern. |
FILM COSTS
FILM COSTS | 6 Months Ended |
Dec. 31, 2021 | |
FILM COSTS | |
NOTE 3 - FILM COSTS | NOTE 3 – FILM COSTS Film costs are comprised of the following: December 31, June 30, 2021 2021 Independent Self-Produced Film Costs $ 85,496 $ 85,496 Film costs include salaries and wages, and all other direct costs associated with the motion pictures and television productions. In addition, the Company qualifies for certain government programs that provide incentives earned in regard to expenditures on qualifying film production activities. The incentives are recorded as an offset to the related asset balance. |
GAIN ON INVESTMENT
GAIN ON INVESTMENT | 6 Months Ended |
Dec. 31, 2021 | |
GAIN ON INVESTMENT | |
NOTE 4 - GAIN ON INVESTMENT | NOTE 4 – GAIN ON INVESTMENT On December 10, 2021, the Company entered into an investment agreement with Wire Room Movie LLC to investment $170,000 fund in connection with a motion picture project entitled “Wire Room”. As of December 31, 2021, the producer of “Wire Room” returned $200,000 back to the Company including the investment principal and a gain on investment of $30,000. |
DEFERRED FILM REVENUE - RELATED
DEFERRED FILM REVENUE - RELATED PARTY | 6 Months Ended |
Dec. 31, 2021 | |
DEFERRED FILM REVENUE - RELATED PARTY | |
NOTE 5 - DEFERRED FILM REVENUE - RELATED PARTY | NOTE 5 – DEFERRED FILM REVENUE – RELATED PARTY During the year ended June 30, 2021, the Company entered into an agreement with Harley Commodity Co. (“Harley”), a related party, to provide certain development services in connection with a future motion picture project. As of December 31, 2021, the $100,000from Harley, was recorded as deferred film revenue – related party as development at such date had not yet been completed. |
PROMISSORY NOTES PAYABLE
PROMISSORY NOTES PAYABLE | 6 Months Ended |
Dec. 31, 2021 | |
PROMISSORY NOTES PAYABLE | |
NOTE 6 - PROMISSORY NOTES PAYABLE | NOTE 6 – PROMISSORY NOTES PAYABLE (i) On October 11, 2017, the Company issued a $150,000Promissory Note in exchange for receiving $150,000proceeds. The principal of $150,000is due fourteen (14) months from the receipt of the funds. and a total interest charge of ten percent or $15,000is to be recorded over the term of the loan. The proceeds were used by the Company to fund the motion picture known as One HLWD KY LLC. On September 24, 2019, the Company signed amendment agreement with lender for the balance of principal note of $50,000with new maturity date of June 30, 2020. The $50,000principal note was paid off on June 12, 2020, and interest expense of $4,767was recorded for the year ended June 30, 2020. Due to change of maturity date of the loan agreement to June 30, 2020, the default interest at 22% recorded in the previous, adjusted to 10% and the effect of change recognized as of gain on modification of debt. On August 12, 2021, the outstanding interest payable was fully waived by the lender in the amount of $12,726, which was recorded as a gain on modification of debt during the six months ended December 31, 2021. As of December 31, 2021 and June 30, 2021, interest payable was $0 and $12,726, respectively. (ii) On January 4, 2018, the Company issued a $80,000Promissory Note in exchange for receiving $80,000proceeds. The principal of $80,000is due twelve (12) months from the receipt of the funds and bears interest at 10% per annum. The proceeds were used by the Company to fund the motion picture known as River Runs Red. On September 24, 2019, the Company signed amendment agreement with lender for the principal note of $80,000with new maturity date of June 30, 2020. The note is in default currently and accrues interest at 22% per annum. For the six months ended December 31, 2021, and 2020, interest expense of $8,187and $8,412were recorded, respectively. As of December 31, 2021 and June 30, 2021 interest payable were $20,601and $12,414, respectively with the outstanding principal amount of $73,820and $73,820, respectively. During the six months ended December 31, 2021 and 2020, the Company repaid principal of $0 and $3,977, respectively, and interest of $0 and $6,023respectively. (iii) On September 24, 2019, the company issued a $50,000Promissory Note in exchange of settlement loan agreement of February 6, 2018 with another lender for replacing $50,000proceeds. The principal of $50,000is due on June 30, 2020 and bears interest at 10% per annum. The Company did not reach an agreement with note holder for new maturity date and as of June 30, 2020, the note is in default. As of September 24, 2019, unpaid interest of $8,164was due and transferred to a new lender. During the six months ended December 31, 2021 and 2020, interest expenses of $554 and $554, respectively was recorded. As of December 31, 2021 and June 30, 2021, unpaid principal was $5,000and $5,000, respectively and accrued interest payable of $5,665and $5,111, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
NOTE 7 - RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS (i) During the year ended June 30, 2021, the Company’s CEO provided the Company with a series of advances, totaling $83,799. During the six months ended December 31, 2021, the Company’s CEO provided additional advances to the Company with a cumulative total of $31,189, after the Company repaid $83,299back to the Company’s CEO, and $500 was deconsolidated upon the sale of a subsidiary to a director (Note 6(iv)), resulting in a remaining payable as of December 31, 2021 and June 30, 2021 of $31,189and $83,799, respectively. The funds are unsecured, non-interest bearing and due on demand. (ii) On September 19, 2017 the company issued a 10% Promissory Note in exchange for receiving $350,000from Kruse Farms, LP., a Company owned by one of the Company’s principle owners, to fund the production of a motion picture. The principal of $350,000is due in twenty-four (24) months from receipt of the funds. On September 24, 2019, the Company and the lender have extended the maturity date to June 30, 2020. The note is currently in default. During the six months ended December 31, 2021 and 2020, the Company recorded interest expense of $3,025and $3,025, respectively. As of December 31, 2021 and June 30, 2021, the principal balances of note were $60,000and $60,000, respectively, with interest payable of $74,978and $71,953outstanding. (iii) (iv) On September 24, 2019, the company issued a $50,000Promissory Note to the Company’s Chief Executive Officer in exchange of settlement loan agreement of February 6, 2018 with another lender for $50,000proceeds. The principal of $50,000is due on June 30, 2020 and bears interest at 10% per annum. As of September 24, 2019, unpaid interest of $8,164was due and transferred to lender. The note is currently in default. As of December 31, 2021 and June 30, 2021, unpaid principal totaled nil and nil, respectively with accrued interest of $20,468and $20,468, respectively. On December 13, 2021, the Company sold its interests in Christmas Camp, LLC and Last Viriginia Christmas, LLC to its Chief Creative Officer for consideration of $1. Within the Company’s loss from disposal of subsidiaries includes a loss of $3,621with respect to this transaction. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 8 - COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES The Company neither owns nor leases any real or personal property. The Company’s officers have provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
NOTE 9 - SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS The Company has evaluated all subsequent events through the date these consolidated financial statements were issued and determined that there were no subsequent events or transactions that require recognition or disclosures in these condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Consolidation | The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Team Sports Superstore (Inactive), Almost Never Films Inc. (Indiana), Virginia Christmas, LLC (New York), Christmas Camp, LLC (New York). Its 90% owned subsidiaries are One HLWD KY LLC (Kentucky), Two HLWD KY LLC (Kentucky) and Three HLWD KY (Kentucky), LLC. All significant intercompany transactions and balances have been eliminated in consolidation. |
Discontinued operations | On October 18, 2021 both One HLWD KY LLC and Three HLWD KY LLC were dissolved. On December 13, 2021, the Company sold Virginia Christmas and Christmas Camp to an officer of the Company (see Note 7). As a result of such transactions, the Company no longer controls such entities and their historical results are presented as discontinued operations in the consolidated statements of operations and comprehensive loss. |
Basis of Presentation | The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, these condensed financial statements do not include all 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 financial statements not misleading have been included. The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). |
Use of Estimates | The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. Significant estimates are used in valuing the fair value of common stock issued for services, film costs, among others. Actual results could differ from these estimates. |
Film Costs, Net | The Company records film costs in accordance with ASC – 926 - Entertainment – Films |
Revenue Recognition | The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation. When the Company enters into a contract, the Company analyses the services required in the contract in order to identify the required performance obligations which would indicate the Company has met and fulfilled its obligations. For the current contracts in place, the Company has identified performance obligations as one single event, the sign-off by both parties that production is completed and the product (film) is ready for distribution. To appropriately identify the performance obligations, the Company considers all of the services required to be satisfied per the contract, whether explicitly stated or implicitly implied. The Company allocates the full transaction price to the single performance obligation being satisfied. The Company recognizes revenue when the customer confirms to the Company that all of the terms and conditions of the contract has been met, and the sign-off of the project has been completed. The Company derives its revenues from the follows: · Production Service Agreement Revenue is related to films where the Company has been engaged as an independent contractor to provide production services and other elements related to production for individual film projects. · Revenue from self-produced films is related to films where the Company has self-produced certain films along with a third party, with the expectation that these films will be distributed in the future. The Company analyses whether gross sales, or net sales should be recorded, has control over establishing price, and has control over the related costs with earning revenues. The Company has recorded all revenues at the gross price. Cash payments received are recorded as deferred revenue until the conditions, stated above, of revenue recognition have been met, specifically all obligations have been met as specified in the related customer contract. |
Recently Issued Accounting Pronouncements | Management has considered all recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
Going Concern | The accompanying consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying condensed consolidated financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the six months ended December 31, 2021, the Company incurred a net loss of $73,822. As of December 31, 2021, the Company had a working capital deficiency of $460,488 and an accumulated deficit of $2,270,162. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion and an identification of new business opportunities. The Company plans on raising the required funds through completion of film projects resulting in revenues, and further potential equity and debt offerings. However, there is no assurance that the Company will be successful in this or any of its endeavors or become financially viable to continue as a going concern. |
FILM COSTS (Tables)
FILM COSTS (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
FILM COSTS | |
Schedule of film costs | December 31, June 30, 2021 2021 Independent Self-Produced Film Costs $ 85,496 $ 85,496 |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details Narrative) - USD ($) | Aug. 09, 2017 | Jan. 15, 2016 | Dec. 31, 2021 | Feb. 29, 2016 |
Budget amount | $ 35 | |||
Common stock, shares authoriziation | 2,500,000 | 5,000,000 | ||
Description of common stock reverse stock split | 1-for-40 | |||
Exchange Agreement [Member] | ||||
Series A convertible preferred stock issued | 1,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Net loss from operation | $ 73,822 | |
Working capital deficit | 460,488 | |
Accumulated deficit | $ (2,270,162) | $ (2,196,358) |
FILM COSTS (Details)
FILM COSTS (Details) - USD ($) | Dec. 31, 2021 | Jun. 30, 2021 |
FILM COSTS | ||
Independent Self-Produced Film Costs, Net | $ 85,496 | $ 85,496 |
FILM COSTS (Details Narrative)
FILM COSTS (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
FILM COSTS | ||
Capitalized film costs expensed as cost of revenues | $ 0 | $ 0 |
GAIN ON INVESTMENT (Details Nar
GAIN ON INVESTMENT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 12, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain on investment | $ 30,000 | $ 30,000 | $ 0 | $ 0 | |
Wire Room Movie LLC [Member] | |||||
Return on investment | $ 200,000 | 200,000 | |||
Invetment fund | $ 170,000 | ||||
Gain on investment | $ 30,000 |
DEFERRED FILM REVENUE - RELAT_2
DEFERRED FILM REVENUE - RELATED PARTY (Details Narrative) | 6 Months Ended |
Dec. 31, 2021USD ($) | |
Harley Commodity Co [Member] | |
Related party advances | $ 100,000 |
PROMISSORY NOTES PAYABLE (Detai
PROMISSORY NOTES PAYABLE (Details Narrative) - USD ($) | Jan. 04, 2018 | Oct. 11, 2017 | Sep. 24, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Aug. 12, 2021 | Jun. 30, 2020 |
Interest payable | $ 121,713 | $ 121,713 | $ 122,673 | |||||||
Promissory note payable | 78,820 | 78,820 | 78,820 | |||||||
Interest expense | 6,212 | $ 8,665 | 12,156 | $ 17,555 | ||||||
Promissory note interest payable | 11,766 | 17,536 | ||||||||
Settlement Loan Agreement [Member] | ||||||||||
Promissory note payable | $ 50,000 | |||||||||
Percentage of accrued interest | 10% | |||||||||
Proceeds from issuance of promissory note payable | $ 50,000 | |||||||||
Interest expense | 4,767 | |||||||||
Two new lender [Member] | ||||||||||
Outstanding principal balance | 50,000 | |||||||||
Lender [Member] | Amendment Agreement [Member] | ||||||||||
Principal note payable | $ 80,000 | |||||||||
Maturity date | June 30, 2020 | |||||||||
October 11, 2017 [Member] | ||||||||||
Interest payable | 0 | $ 0 | 12,726 | |||||||
Interest rate description | Due to change of maturity date of the loan agreement to June 30, 2020, the default interest at 22% recorded in the previous, adjusted to 10% and the effect of change recognized as of gain on modification of debt. | |||||||||
January 4, 2018 [Member] | ||||||||||
Interest payable | 20,601 | $ 20,601 | 12,414 | |||||||
Interest rate description | The note is in default currently and accrues interest at 22% per annum. For the six months ended December 31, 2021, and 2020 | |||||||||
Interest expense | $ 8,187 | 8,412 | ||||||||
Principal note payable | 73,820 | 73,820 | 73,820 | |||||||
Repayment of notes payable | 0 | 3,977 | ||||||||
Promissory note interest payable | 0 | 6,023 | ||||||||
September 24, 2019 [Member] | Settlement Loan Agreement [Member] | ||||||||||
Interest payable | 5,665 | 5,665 | 5,111 | |||||||
Interest expense | 554 | $ 554 | ||||||||
Unpaid principle | 5,000 | 5,000 | ||||||||
Promissory Note [Member] | ||||||||||
Interest payable | 0 | 0 | 1 | $ 12,726 | ||||||
Promissory note payable | $ 80,000 | $ 150,000 | $ 80,000 | $ 80,000 | ||||||
Promissory note | 150,000 | |||||||||
Recorded interest over term of loan | 15,000 | |||||||||
Percentage of accrued interest | 10% | |||||||||
Proceeds from issuance of promissory note payable | $ 80,000 | $ 150,000 | ||||||||
Promissory Note [Member] | Chief Executive Officer [Member] | ||||||||||
Interest payable | $ 8,164 | |||||||||
Promissory note | $ 50,000 | $ 50,000 | $ 50,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Dec. 13, 2021 | Sep. 24, 2019 | Sep. 19, 2017 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Net loss | $ (18,926) | $ (54,896) | $ (35,731) | $ (50,867) | $ (73,822) | $ (86,598) | |||||
Loss from disposal of subsidiaries | 776 | $ 0 | 776 | 0 | |||||||
Chief Creative Officer [Member] | |||||||||||
Consideration | $ 1 | ||||||||||
Loss from disposal of subsidiaries | $ 3,621 | ||||||||||
Kruse Farm [Member] | Notes Payable, Other Payables [Member] | |||||||||||
Promissory note | $ 350,000 | 60,000 | 60,000 | $ 60,000 | |||||||
Accured interest | 74,978 | 74,978 | 71,953 | ||||||||
Notes Payable | $ 350,000 | ||||||||||
Interest expense | 3,025 | $ 3,025 | |||||||||
Percentage of notes payable | 10% | ||||||||||
Promissory Note [Member] | Chief Executive Officer [Member] | |||||||||||
Promissory note | $ 50,000 | 50,000 | $ 50,000 | ||||||||
Advance from related party | 83,799 | ||||||||||
Repayment of advances from related party | 83,299 | ||||||||||
Remaining balance payable | 31,189 | 31,189 | 83,799 | ||||||||
Net loss | 31,189 | ||||||||||
Deconsolidation upon the sale of a subsidiary | 500 | ||||||||||
Accured interest | 8,164 | $ 20,468 | 20,468 | 20,468 | |||||||
Unpaid principle amount | $ 0 | $ 0 | |||||||||
Proceeds from issuance of promissory note | $ 50,000 | ||||||||||
Percentage of promissory note | 10% |