Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'China Media Inc. | ' |
Entity Central Index Key | '0001434674 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $0 |
Entity Common Stock, Shares Outstanding | ' | 39,750,000 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
Consoldiated_Balance_Sheets
Consoldiated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Current assets | ' | ' |
Cash and cash equivalents | $169,587 | $633,246 |
Accounts receivable, net of allowance of $39,620 and $39,700 at September 30, 2014 and June 30, 2014, respectively | 1,306,595 | 1,306,213 |
Notes receivable | 1,692,804 | 2,992,023 |
Prepaid and other receivable | 109,752 | 46,451 |
Total current assets | 3,278,738 | 4,977,933 |
Fixed assets, net | 26,134 | 27,986 |
Intangible assets, net | 6,500 | 9,748 |
Film costs | 5,362,889 | 3,736,678 |
Total assets | 8,674,261 | 8,752,345 |
Current liabilities | ' | ' |
Accounts payable | 9,611 | 9,610 |
Accrued liabilities and other payable | 275,840 | 372,152 |
Due to related parties | 1,049,761 | 1,049,454 |
Total current liabilities | 1,335,212 | 1,431,216 |
Total liabilities | 1,335,212 | 1,431,216 |
Stockholders' equity | ' | ' |
Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at September 30, 2014 and June 30, 2014, respectively | 398 | 398 |
Additional paid-in capital | 11,194,909 | 11,179,044 |
Accumulated other comprehensive income | 1,121,114 | 1,118,961 |
Accumulated deficit | -4,977,372 | -4,977,274 |
Total stockholders' equity | 7,339,049 | 7,321,129 |
Total liabilities and stockholders' equity | $8,674,261 | $8,752,345 |
Consoldiated_Balance_Sheets_Pa
Consoldiated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $39,620 | $39,700 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 39,750,000 | 39,750,000 |
Common stock, shares outstanding | 39,750,000 | 39,750,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement [Abstract] | ' | ' |
Revenues | ' | ' |
Cost of revenues | ' | ' |
Gross profit | ' | ' |
Selling, general and administrative | 42,309 | 54,920 |
Depreciation and amortization expense | 5,107 | 5,104 |
Total operating expenses | 47,416 | 60,024 |
Other income (expense) | ' | ' |
Interest income | 63,183 | 14,655 |
Interest expense | -15,865 | -2,056 |
Net income before income taxes | -98 | -47,425 |
Net income | -98 | -47,425 |
Comprehensive income (loss) | ' | ' |
Net income (loss) | -98 | -47,425 |
Foreign currency translation gain | 2,153 | 42,126 |
Comprehensive income | $2,055 | ($5,299) |
Net income per common share, basic and diluted | $0 | $0 |
Weighted average number of shares outstanding-basic and diluted | 39,750,000 | 39,750,000 |
Consoldiated_Statements_of_Cas
Consoldiated Statements of Cash Flows (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS OPERATING ACTIVITIES | ' | ' |
Net loss | ($98) | ($47,425) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Imputed interest | 15,865 | 2,056 |
Amortization expense | 3,248 | 3,246 |
Depreciation expense | 1,859 | 1,857 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | ' | 11,361 |
Prepaid and other receivable | -63,244 | 40,159 |
Accounts payable | ' | -6,120 |
Accrued liabilities and other payable | -96,355 | 578 |
Customer deposits | ' | -54,620 |
Cash paid for film costs | -1,624,009 | -12,385 |
Net cash used in operating activities | -1,762,734 | -61,293 |
CASH FLOW INVESTING ACTIVITIES | ' | ' |
Loans made to others | -487,203 | -1,022,511 |
Collection of notes receivable | 1,786,410 | 1,022,511 |
Net cash provided by investing activities | 1,299,207 | ' |
Effect of exchange rate changes on cash | -132 | 880 |
NET CHANGE IN CASH | -463,659 | -60,413 |
CASH AT BEGINNING OF THE YEAR | 633,246 | 184,746 |
CASH AT END OF THE YEAR | 169,587 | 124,333 |
SUPPLEMENTAL INFORMATION: | ' | ' |
Interest paid | ' | ' |
Income taxes paid | $106,906 | ' |
Description_of_Business
Description of Business | 3 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Description of Business | ' | ||
NOTE 1. Description of Business | |||
China Media Inc. (the “Company”, “China Media”), formerly Protecwerx Inc., was incorporated in the State of Nevada on October 16, 2007. | |||
Vallant Pictures Entertainment Co., Ltd. (“Vallant”) was incorporated in the British Virgin Islands on May 23, 2007. | |||
Xi’An TV Media Co. Ltd. (“Xi’An TV”) was incorporated in Xi’An, Shaan’Xi Province, People’s Republic of China (“PRC”) on March 9, 2005. Xi’An TV is in the businesses of producing and developing television programming for the Chinese market. | |||
On July 7, 2009, Fullead Overseas Limited, a company incorporated under the laws of the British Virgin Islands (the “Buyer”), entered into a share purchase agreement (the “Share Purchase Agreement”), pursuant to which the Buyer agreed to purchase a total of 32,500,000 shares of the Company’s common stock, representing 85% of the total issued and outstanding shares of common stock of the Company on a fully-diluted basis. Bin Li, the Company’s Director, is the owner and sole Director of the Buyer. | |||
On September 16, 2009, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with Vallant and Bin Li, the Company’s Director and the former sole shareholder of Vallant. According to the terms of the Share Exchange Agreement, the Company agreed to acquire the sole issued and outstanding common share of Vallant from Bin Li in exchange for 7,000 shares of the Company’s common stock. | |||
On November 30, 2009, the Company closed the transactions contemplated by the Share Exchange Agreement and acquired Vallant as its wholly owned subsidiary. Vallant has entered into a series of contractual obligations with Xi’An TV as well as the holders of 62.61% of the voting shares of Xi’An TV. In December 2009, the former shareholders of Xi’An TV transferred all of their equity interests in the entity to three individuals, as a result of this change of control, Vallant and the new shareholders amended the series of contractual obligations in December 2009. | |||
On September 17, 2010, Vallant and the holders of 100% of the voting shares of Xi’An TV further amended the various consulting agreements and equity pledge agreement dated December 28, 2009. According to the amended agreements, Xi’An TV will provide Vallant with 100% of its income. Xi’An TV shareholders now pledged 100% of their equity interests in Xi’An TV to Vallant to guarantee Xi’An TV’s performance of its obligations under the Business Operations Agreement. | |||
In compliance with the PRC’s laws and regulations, Vallant conducts all of the business in China through Xi’An TV, a domestic Variable Interest Entity (“VIE”). It does this by controlling Xi’An TV through various consulting agreements and equity pledge agreement dated June 20, 2007, as amended on December 28, 2009 and September 17, 2010, respectively. | |||
According to the Business Services Agreement, Vallant has the exclusive right to provide services required in the regular course of business to Xi’An TV, effectively restricting and controlling the operations of Xi’An TV. In exchange, Xi’An TV will provide Vallant with 100% (62.61% prior to September 17, 2010) of its income. Furthermore, the Business Operations agreement also states that Vallant has the right to control the appointment of the board members and senior executives of Xi’An TV. | |||
According to the Option Agreement, Vallant has the exclusive and irrevocable right to acquire 100% of the equity interests of Xi’An TV if permitted under the PRC law. In the Equity Pledge Agreement, Xi’An TV shareholders also pledged 100% (62.61% prior to September 17, 2010) of their equity interests in Xi’An TV to Vallant to guarantee Xi’An TV’s performance of its obligations under the Business Operations Agreement. | |||
In light of the above, Vallant has a controlling interest in Xi’An TV based on the fact that: | |||
· | Vallant has the ability to absorb 100% (62.61% prior to September 17, 2010) of the expected residual return from Xi’An TV, which makes Vallant the primary beneficiary of Xi’An TV. In the event Xi’An TV fails to pay any required amounts, Vallant could exercise its right to acquire certain pledged shares in Xi’An TV pursuant to an equity pledge agreement executed by and between Vallant and Xi’An TV which guarantee all required payment; | ||
· | Vallant has the exclusive right to purchase all of the outstanding interests in Xi’An TV, which would make Xi’An TV a wholly-owned subsidiary of Vallant when it’s allowable under the PRC regulation; and | ||
· | Vallant could exercise absolute influence over Xi’An TV through overseeing the board and senior executives of Xi’An TV. | ||
Upon executing the above agreements, Xi’An TV is considered a VIE and Vallant is its primary beneficiary. Xi’An TV is consolidated into Vallant under the guidance of FASB Accounting Standards Codification (ASC) 810, Consolidation. | |||
The Company had 39,743,000 shares of our common stock issued and outstanding before the closing of the transactions contemplated by the Share Exchange Agreement. Upon the closing of the transactions, we issued 7,000 shares of our common stock to Bin Li, our Director and the former sole shareholder of Vallant. Mr. Li is the beneficial owner of 2,000,000 additional shares of our common stock. The 7,000 shares were issued in reliance upon an exemption from registration pursuant to Regulation S promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Upon the closing of the Share Exchange, there were 39,750,000 shares of our common stock issued and outstanding. | |||
The share exchange is being accounted for as a reverse merger, since the former sole shareholder of Vallant, Bin Li acquired the majority of the Company’s common stock with the aim of completing the share exchange with Vallant, and Vallant is deemed to be the accounting acquirer in the reverse merger. Consequently, the assets and liabilities and the historical operations that will be reflected in the consolidated financial statements for periods prior to the Share Exchange Agreement will be those of Vallant and will be recorded at the historical cost basis. After the completion of the Share Exchange Agreement, the Company’s consolidated financial statements will include the assets and liabilities of Vallant, the historical operations of Vallant and its subsidiaries from the closing date of the Share Exchange Agreement. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
NOTE 2. Summary of Significant Accounting Policies | |
Basis of Presentation and Consolidation | |
The accompanying unaudited interim consolidated financial statements of China Media, Inc. (“We” or the “Company”), have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2014. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2014 included in this document have been omitted. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, estimates of product sales that will be returned and the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis. | |
Recent Accounting Pronouncements | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended |
Sep. 30, 2014 | |
Insurance [Abstract] | ' |
Accounts Receivable | ' |
NOTE 3. Related Party Transactions | |
Mr. Dean Li, President and Shareholder of China Media Inc., had advanced $1,049,761 and $1,049,454 to the Company at September 30, 2014 and June 30, 2014, respectively. The shareholder loan discussed above is non-secured, free of interest with no maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 5.94-6.56% with reference to one-year loan. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 3. Related Party Transactions | |
Mr. Dean Li, President and Shareholder of China Media Inc., had advanced $1,049,761 and $1,049,454 to the Company at September 30, 2014 and June 30, 2014, respectively. The shareholder loan discussed above is non-secured, free of interest with no maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 5.94-6.56% with reference to one-year loan. |
Film_Costs
Film Costs | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Film Costs | ' | |||||||
NOTE 4. Film Costs | ||||||||
Film costs consist of the following: | ||||||||
30-Sep-14 | 30-Jun-14 | |||||||
Completed and not released: | ||||||||
TV Series | $ | 5,362,889 | $ | 3,736,378 | ||||
Film costs | $ | 5,362,889 | $ | 3,736,678 | ||||
Notes_Receivable
Notes Receivable | 3 Months Ended |
Sep. 30, 2014 | |
Receivables [Abstract] | ' |
Notes Receivable | ' |
NOTE 5. Notes Receivable | |
On March 20, 2013, the Company lent RMB 946,500 (approximately $155,000) in the form of an interest free loan to Zhongshi Fengde (“Zhongshi Fengde”), one of the Company’s business partners. The Company collected RMB530,000 ($86,305) as of June 30, 2014. No repayment was collected during the three months ended September 30, 2014 and the outstanding balance was RMB 416,500 (approximately $67,686) as of September 30, 2014. | |
On June 13, 2014, the Company lent RMB18M (approximately $2,931,119) to Shaan’Xi Hushi Culture Communication Company (SHCC), a company owned by a business friend of Dean Li, the President and Shareholder of China Media Inc. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at 200% of the prevailing PRC prime rate if SHCC repays the loan after 30 days. During the three months ended September 30, 2014, the Company received repayment of RMB11M (approximately $1,786,410) and Shaanxi Hushi orally promised to pay off the remaining balance no later than December 31, 2014. | |
On July 1, 2014, the Company lent an additional RMB3M (approximately $487,203) to SHCC with three months term. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at four times of the current bank loan rate if SHCC repays the loan after 30 days. No collection has been received as of the filing date and Shaanxi Hushi orally promised to pay off the loan before December 31, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Basis of Presentation and Consolidation | |
The accompanying unaudited interim consolidated financial statements of China Media, Inc. (“We” or the “Company”), have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2014. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2014 included in this document have been omitted. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, estimates of product sales that will be returned and the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations. |
Film_Costs_Tables
Film Costs (Tables) | 3 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Film Cost | ' | |||||||
Film costs consist of the following: | ||||||||
30-Sep-14 | 30-Jun-14 | |||||||
Completed and not released: | ||||||||
TV Series | $ | 5,362,889 | $ | 3,736,378 | ||||
Film costs | $ | 5,362,889 | $ | 3,736,678 | ||||
Description_of_Business_Detail
Description of Business (Details) | 0 Months Ended | 0 Months Ended | |
Sep. 17, 2010 | Sep. 16, 2010 | Jul. 07, 2009 | |
Fullead Overseas Limited | |||
Number of Shares Purchased of Company's common stock | ' | ' | 32,500,000 |
Shares, Outstanding | 39,750,000 | 39,743,000 | ' |
Stock Issued During Period, Shares, Issued for Noncash Consideration | 7,000 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Dean Li, President and Shareholder | Dean Li, President and Shareholder | Minimum [Member] | Maximum [Member] | |
Advance from Related party | $1,049,454 | $1,049,454 | ' | ' |
Range of Annual Imputed Interest Rate (as a percentage) | ' | ' | 5.94% | 6.56% |
Film_Costs_Details
Film Costs (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Accounting Policies [Abstract] | ' | ' |
Completed and not released:TV Series | $5,362,889 | $3,736,378 |
Film costs | $5,362,889 | $3,736,678 |
Notes_Receivable_Details
Notes Receivable (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Mar. 20, 2013 | Sep. 30, 2014 | Jul. 02, 2014 | Jun. 13, 2014 | |
Zhongshi Fengde [Member] | Zhongshi Fengde [Member] | Shaan'Xi Hushi Culture Communication Company [Member] | Shaan'Xi Hushi Culture Communication Company [Member] | Shaan'Xi Hushi Culture Communication Company [Member] | |||
Business Partner [Member] | Business Partner [Member] | Business friend of Dean Li, the President and Shareholder of China Media Inc. [Member] | Business friend of Dean Li, the President and Shareholder of China Media Inc. [Member] | Business friend of Dean Li, the President and Shareholder of China Media Inc. [Member] | |||
Amount lent | ' | ' | ' | $155,000 | ' | $487,203 | $2,931,119 |
Notes Receivable | ' | ' | 86,305 | ' | ' | ' | ' |
Proceeds from notes receivable | $1,786,410 | $1,022,511 | ' | ' | $1,786,410 | ' | ' |