NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
NOTE 1.
SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with United States
generally accepted accounting principles ("GAAP") and with instructions to
Form-10Q and Article 10 of Regulation S-X. Accordingly, they do not include
all the information required by GAAP for a complete set of financial
statements. In the opinion of management, all adjustments, (including normal
recurring accruals) considered necessary for a fair presentation have been
included in the financial statements. Operating results for the interim period
are not necessarily indicative of the results that may be expected for the
fiscal year ended June 30, 2016 or any other period. In addition, the
balance sheet data at June 30, 2015 was derived from the audited financial
statements but does not include all disclosures required by GAAP.
This Form 10-Q should be read in conjunction with the Audited Financial
Statements for the year ended June 30, 2015 included in the Company's annual report
on Form 10-K which was filed on November
17, 2015.
The unaudited condensed consolidated financial
statements include the accounts of 30DC, Inc., (f/k/a Infinity Capital Group,
Inc.) and its subsidiary 30DC, Inc.,
Delaware, ("30DC DE").
REVENUE
RECOGNITION
Generally,
the Company offers customers the option to purchase its digital products for a
single payment or for a higher price consisting of a down payment and
additional payments over a period of time which can be as long as one year. Pursuant
to ASC 605 the Company has determined that revenue is realizable and the
earnings process is complete and the four criteria for revenue recognition
stated in SAB Topic 13 are met at the time of the initial purchase.
Accordingly, the Company deems the sale to have occurred at the time of initial
purchase and records the full amount paid and/or due from a customer as
revenue. Typically customers are offered a period to review the product and
request a refund and if a refund is requested the company reverses the revenue
which was recorded at the time of the sale. The Company records a liability
for future refunds and reduces revenue by that amount. If a customer defaults
on an additional payment, the customer loses access to the digital product.
Based upon its past experience with extended payment plans, the Company has
estimated the number of future defaulted payments and has reduced revenue and
accounts receivable by that amount. During the quarter ending March 31, 2016,
the Company offered customers the opportunity to purchase a group package of 5
to 15 digital product licenses at a discounted price per license. Customers do
not receive access information to a license in their group packaged until they
are ready to use the license. The Company considers a license delivered when
access information is sent to a customer, accordingly, unused licenses that are
part of a group package are considered as nondelivered and receipts for these
unused licenses are included in deferred revenue.
For
an additional charge, the Company offers customers ancillary services which are
not required to be purchased with a product. These services include additional
technical support and/or specific product services. The Company recognizes
revenue when the service is completed; receipts for services which have not
been completed are included in deferred revenue.
NET INCOME OR LOSS PER SHARE
The Company computes net
income or loss per share in
accordance with ASC 260 "Earnings per Share." Under ASC 260, basic net income or loss per share is computed by
dividing net loss per share available to common stockholders by the weighted
average number of shares outstanding for the period and excludes the effects of
any potentially dilutive securities. Diluted earnings per share, includes the dilution that would occur upon
the exercise or conversion of all potentially dilutive securities into common
stock using the "treasury stock" and/or "if converted" methods as applicable. For all periods presented,
potentially dilutive securities would be anti-dilutive and have not been
included in computing diluted earnings per share.
-6-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
NOTE 2.
GOING CONCERN
The condensed consolidated financial statements have
been prepared using accounting principles generally accepted in the United
States of America applicable for a going concern which assumes that the Company
will realize its assets and discharge its liabilities in the ordinary course of
business. As of March 31, 2016, the Company had
a working capital deficit of approximately $2,288,000 and had
accumulated losses of approximately $5,152,000 since its inception. The Company's
ability to continue as a going concern is dependent upon its ability to obtain
the necessary financing or to earn profits from its business operations to meet
its obligations and pay its liabilities arising from normal business operations
when they come due. In the past few
years, the Company switched its focus to developing its own products. In May 2012, the Company
launched MagCast which the Company expects to be an integral part of its
businesses on an ongoing basis. MagCast is being sold directly to customers and through an affiliate network which expands the
Company's selling capability and has a broad target market beyond the Company's
traditional customer base. In October
2015, the Company held a pre-beta launch for its newest digital publishing
product, ScrivCast which will be priced lower than MagCast and will be targeted
to a broader audience. Until
the Company achieves sustained profitability it does not have sufficient
capital to meet its needs and continues to seek loans or equity placements to
cover such cash needs.
No commitments to provide additional funds have been
made and there can be no assurance that any additional funds will be available
to cover expenses as they may be incurred. If the Company is unable to raise
additional capital or encounters unforeseen circumstances, it may be required
to take additional measures to conserve liquidity, which could include, but not
necessarily be limited to, issuance of additional shares of the Company's stock
to settle operating liabilities which would dilute existing shareholders,
curtailing its operations, suspending the pursuit of its business plan and
controlling overhead expenses. The Company cannot provide any assurance that
new financing will be available to it on commercially acceptable terms, if at
all. These conditions raise substantial doubt about the Company's ability to
continue as a going concern. These condensed consolidated financial
statements do not include any adjustments to the amounts and classification of
assets and liabilities that may be necessary should the Company be unable to
continue as a going concern.
For the past few years, the Company offered MagCast through
a once per year large-scale promotion for which the majority of sales were
through marketing affiliates which are unrelated parties who earn commissions
by referring customers to the Company and a majority of the Company's annual
sales were during the promotion. The Company held a smaller promotion through
marketing affiliates in July 2014 than in prior years. In July 2015, the Company held a smaller promotion
without marketing affiliates for one-year MagCast licenses which can be renewed
at the end of the one-year term. Revenue from the one-year licenses is being
recognized ratably over the one year term. The Company does not expect to have a large-scale MagCast promotion during this fiscal year. In October 2015, the Company held a pre-beta launch for its newest
digital publishing product, ScrivCast. The pre-beta launch, which was targeted
at the Company's existing customer base, offered a lifetime license at a
promotional price to encourage customers to try the new product. The Company
has received feedback from customers on ScrivCast and is preparing for a beta
launch which will be followed by release of ScrivCast to a broader market.
NOTE 3. DIVESTITURE
On July 30, 2015, the Company
divested a portfolio of Internet marketing assets ("IM Sale"), including Market Pro Max, in two
separate transaction with Marillion Partnership and Netbloo Media, Ltd. in
exchange for return of a total of 16,743,681 shares of the Company's common
stock to the Company. 10,000,000 shares were
redeemed from Marillion Partnership which owns more than 10% of the Company's
outstanding shares and was a contractor to the Company including the services
of Edward Dale as Chief Executive Officer of the Company. 6,743,681 shares
were redeemed from Netbloo Media. Ltd. which owns more than 10% of the
Company's outstanding shares and is a contractor to the Company. After these
transactions, both Marillion and Netbloo remain shareholders and each owns in
-7-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
excess of 10% of the Company's
outstanding common stock. Included with the IM sale were fixed assets with a
net book value of approximately $6,000 and intangible assets including goodwill
with net book value of approximately $290,000. The shares tendered as
consideration for the transaction were valued at approximately $84,000, based
upon the last trading price, resulting in a loss of approximately $213,000.
Operating results for the assets divested have been reclassified as discontinued
operations (see note 4).
Simultaneous
with the IM Sale, Marillion Partnership's contractor agreement with the Company
was terminated, this had included Edward Dale serving as Chief Executive
Officer of the Company. Henry Pinskier, Chair of 30DC, Inc.'s Board of
Directors was elected by the board as interim Chief Executive Officer of the
Company. Mr. Dale remains a director of the Company.
Simultaneous with the IM Sale, Netbloo Media, Ltd.'s
existing contractor agreement with the Company was superseded by a new
contractor agreement with an effective date of May 15, 2015. The new
contractor agreement reduces annual compensation from $300,000 to $150,000 per
year and reduces the services Netbloo will provide to the Company's which is now
focused on the Company's digital publishing products, MagCast and ScrivCast.
NOTE
4
.
DISCONTINUED OPERATION
The Company has included two businesses in discontinued
operations; the portfolio of Internet Marketing Assets business which was
divested July 30, 2015 (see note 3) and the business of Infinity which was
discontinued after the share exchange with 30DC DE on September 10, 2010. Prior
to the share exchange, Infinity withdrew its election to operate as a Business
Development Company ("BDC") under the Investment Company Act of 1940 ("1940
Act"). Infinity historically operated as a non-diversified, closed-end
management investment company and prepared its financial statements as required
by the 1940 Act. 30DC is no longer actively operating the BDC and the assets,
liabilities and results of operations of Infinity's former business are shown
as discontinued operations in the Company's financial statements subsequent to
the share exchange with 30DC. Investment companies report assets at fair value
and the Company has continued to report investment assets in discontinued
operations on this basis.
Results of Discontinued Operations for the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended March 31, 2016
|
|
Nine Months Ended March 31, 2015
|
|
IM Business
|
Infinity
|
Total
|
|
IM Business
|
Infinity
|
Total
|
Revenues
|
$ 31,275
|
$ -
|
$ 31,275
|
|
$ 280,575
|
$ -
|
$ 280,575
|
Operating expenses
|
3,939
|
3,734
|
7,673
|
|
385,277
|
4,152
|
389,429
|
Income (Loss) from operations
|
27,336
|
(3,734)
|
23,602
|
|
(104,702)
|
(4,152)
|
(108,854)
|
Unrealized gain (loss) on marketable securities
|
-
|
(19,292)
|
(19,292)
|
|
-
|
(29,563)
|
(29,563)
|
Loss on Divestiture
|
(212,563)
|
-
|
(212,563)
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
$ (185,227)
|
$ (23,026)
|
$ (208,253)
|
|
$ (104,702)
|
$ (33,715)
|
$ (138,417)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016
|
|
Three Months Ended March 31, 2015
|
|
IM Business
|
Infinity
|
Total
|
|
IM Business
|
Infinity
|
Total
|
Revenues
|
$ 5,871
|
$ -
|
$ 5,871
|
|
$ 56,612
|
$ -
|
$ 56,612
|
Operating expenses
|
720
|
1,225
|
1,945
|
|
120,426
|
1,301
|
121,727
|
Income (Loss) from operations
|
5,151
|
(1,225)
|
3,926
|
|
(63,814)
|
(1,301)
|
(65,115)
|
Unrealized gain on marketable securities
|
-
|
14,354
|
14,354
|
|
-
|
(19,313)
|
(19,313)
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
$ 5,151
|
$ 13,129
|
$ 18,280
|
|
$ (63,814)
|
$ (20,614)
|
$ (84,428)
|
|
|
|
|
|
|
|
|
-8-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
Assets and Liabilities of Discontinued Operations as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
June 30, 2015
|
|
IM Business
|
Infinity
|
Total
|
|
IM Business
|
Infinity
|
Total
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$ -
|
$ -
|
$ -
|
|
$ -
|
$ -
|
$ -
|
Prepaid expenses
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Marketable securities
|
-
|
61,479
|
61,479
|
|
-
|
80,771
|
80,771
|
|
|
|
|
|
|
|
|
Total Current Assets
|
-
|
61,479
|
61,479
|
|
-
|
80,771
|
80,771
|
|
|
|
|
|
|
|
|
Intangible Assets
|
-
|
-
|
-
|
|
35,680
|
-
|
35,680
|
Goodwill
|
-
|
-
|
-
|
|
255,495
|
-
|
255,495
|
|
|
|
|
|
|
|
|
Total Assets of Discontinued Operations
|
$ -
|
$ 61,479
|
$ 61,479
|
|
$ 291,175
|
$ 80,771
|
$ 371,946
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
$ -
|
$ 19,375
|
$ 19,375
|
|
$ -
|
$ 19,375
|
$ 19,375
|
Accrued expenses
|
-
|
71,466
|
71,466
|
|
-
|
67,732
|
67,732
|
Notes payable
|
-
|
49,550
|
49,550
|
|
-
|
51,550
|
51,550
|
Due to related parties
|
-
|
21,000
|
21,000
|
|
-
|
21,000
|
21,000
|
|
|
|
|
|
|
|
|
Total Liabilities of Discontinued Operations
|
$ -
|
$ 161,391
|
$ 161,391
|
|
$ -
|
$ 159,657
|
$ 159,657
|
|
|
|
|
|
|
|
|
Notes Payable
Included in liabilities of discontinued operations at March 31,
2016 and June 30, 2015 are $49,550 and $51,050 respectively in notes payable
plus related accrued interest of which are all in default for lack of repayment
by their due date.
For the nine months ended March 31, 2016 and March 31, 2015
the Company incurred interest expense on notes payable of $3,734 and $4,152
respectively which is included in the Statement of Operations under income
(loss) from discontinued operations.
Marketable Securities
At March 31, 2016 the fair value of marketable securities
held for sale was $61,479 which included cumulative net unrealized losses of $4,931.
At June 30, 2015 the fair value of marketable securities held for sale was $80,771
which included cumulative net unrealized gains of $14,361.
NOTE
5. RELATED PARTY TRANSACTIONS
At March 31, 2016, due to related parties totaled $1,339,847. This primarily consisted of $34,500 due to 21
st
Century Digital Media, Inc. (successor to GHL Group, Ltd.), whose President, Gregory H. Laborde is a Director, under their consulting services agreement, $286,500 accrued for directors' fees for services of non-executive directors, $191,300 due to Netbloo Media, Ltd. under its contractor agreement, $22,700 due to Marillion Partnership under its contractor agreement and $804,900 due to Theodore A. Greenberg, CFO and director, for compensation.
On July 30, 2015, the Company divested a portfolio of Internet marketing assets ("IM Sale"), including Market Pro Max, in two separate transaction with Marillion Partnership and Netbloo Media, Ltd. in exchange for return of a total of 16,743,681 shares of the Company's common stock to the Company, see note 3 for further details on the divestiture.
-9-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
On December 22, 2015, the Company entered into an agreement
with Henry Pinskier, the Company's Interim Chief Executive Officer for
consideration of 2,000,000 shares of the Company's common stock. The
agreement has zero cash consideration and covers the time Mr. Pinskier began
serving as Interim Chief Executive Officer through the end of the Company's
current fiscal year, June 30, 2016. For the 2,000,000 shares the Company
recorded $12,000 as related party contractor expense based upon the closing
price of the Company's shares on the day the shares were issued. Mr. Pinskier
is also chairman of the Company's board of directors.
On December 22, 2015, the Company entered into a one-year
agreement with Theodore A. Greenberg, the Company's Chief Financial Officer for
which part of the consideration was 500,000 shares of the Company's common
stock. Cash consideration under the agreement is $5,000 per month and may be
adjusted after six months based upon the Company's performance and financial
position. Cash consideration under Mr. Greenberg's existing agreement was
$11,000 per month. For the 500,000 shares, the Company recorded $3,000 as
officer's salary expense based upon the closing price of the Company's shares
on the day the shares were issued. Mr. Greenberg is also a member of the
Company's board of directors.
On December 22, 2015, the Company entered into a one-year
agreement with 21st Century Digital Media, Inc., whose President, Gregory H.
Laborde, is a Director of 30DC, for business development services for which
part of the consideration was 300,000 shares of the Company's common stock.
Cash consideration under the agreement is $3,000 per month and the agreement
includes incentive compensation of up to 1,700,000 shares of the Company's
stock which can be earned by achieving certain milestones during the term of
the agreement. For the 300,000 shares the Company recorded $1,800 as related
party contractor expense based upon the closing price of the Company's shares
on the day the shares were issued.
NOTE
6
. STOCKHOLDERS' EQUITY
Common Stock
During the nine
months ended March 31, 2016, the Company issued
common stock as follows:
On November 24, 2015, the Company entered into an agreement
with a business development consultant for which part of the consideration was
250,000 shares of the Company's common stock. For the 250,000 shares, the
Company recorded $1,500 as independent contractor expense based upon the closing
price of the Company's shares on the day the shares were issued.
On December 22, 2015, the Company entered into an agreement
with Henry Pinskier, the Company's Interim Chief Executive Officer for
consideration of 2,000,000 shares of the Company's common stock. The
agreement covers the time Mr. Pinskier began serving as Interim Chief Executive
Officer through the end of the Company's current fiscal year, June 30, 2016.
For the 2,000,000 shares the Company recorded $12,000 as related party contractor
expense based upon the closing price of the Company's shares on the day the
shares were issued. Mr. Pinskier is also chairman of the Company's board of
directors.
On December 22, 2015, the Company entered into a one-year
agreement with Theodore A. Greenberg, the Company's Chief Financial Officer for
which part of the consideration was 500,000 shares of the Company's common
stock. For the 500,000 shares, the Company recorded $3,000 as officer's salary
expense based upon the closing price of the Company's shares on the day the
shares were issued. Mr. Greenberg is also a member of the Company's board of
directors.
On December 22, 2015, the Company entered into a one-year
agreement with 21st Century Digital Media, Inc., whose President, Gregory H.
Laborde, is a
-10-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
Director of 30DC, for business
development services for which part of the consideration was 300,000 shares of
the Company's common stock. The agreement includes incentive
compensation of up to 1,700,000 shares of the Company's stock which can be
earned by achieving certain milestones during the term of the agreement.
For the 300,000 shares the Company recorded $1,800 as related party contractor
expense based upon the closing price of the Company's shares on the day the
shares were issued.
During the nine months ended March 31, 2016, the Company divested a portfolio of
Internet marketing assets ("IM Sale"), including Market Pro Max, in two
separate transactions with Marillion Partnership and Netbloo Media, Ltd. in
exchange for return of a total of 16,743,681 shares of the Company's common
stock to the Company, see note 3 for further details on the divestiture.
Warrants
Information
relating to outstanding warrants is as follows:
|
Number of Shares
|
Weighted Average
Exercise Price
|
Weighted Average Remaining
Contract Life (years)
|
|
Outstanding
warrants at 06/30/15
|
|
|
3,401,522
|
|
|
$ 0.50
|
|
|
0.30
|
|
Granted
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Exercised
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Forfeited/expired
|
|
|
3,401,522
|
|
|
0.50
|
|
|
-
|
|
Outstanding
warrants at 3/31/16
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable on
3/31/16
|
|
|
-
|
|
|
-
|
|
|
-
|
|
The aggregate intrinsic value of warrants outstanding and
exercisable was $0 at March 31, 2016.
NOTE
7.
STOCK BASED COMPENSATION PLANS
The Company follows FASB Accounting Standards
Codification No. 718 - Compensation - Stock Compensation for share based
payments to employees. The Company follows FASB Accounting Standards
Codification No. 505 for share based payments to Non-Employees.
The Company recognized expense in the amount of $-0- and $17,709
for the nine months ended March 31, 2016 and March 31, 2015 respectively and
$-0- and $-0- for the three months ended March 31, 2016 and March 31, 2015
respectively for options granted in prior periods the cost of which is being recorded
on a straight-line basis over the vesting period. There was no impact on the
Company's cash flow.
Further
information relating to stock options is as follows:
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Weighted
|
|
Average
|
|
|
|
|
Number
|
|
Average
|
|
Remaining
|
|
|
|
|
of
|
|
Exercise
|
|
Contract
|
|
|
|
|
Shares
|
|
Price
|
|
Life (years)
|
|
|
Outstanding
options at 06/30/15
|
|
|
3,600,000
|
|
|
$ 0.18
|
|
|
6.61
|
|
Granted
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Exercised
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Forfeited/expired
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Outstanding
options at 3/31/16
|
|
|
3,600,000
|
|
|
0.18
|
|
|
5.86
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable on 3/31/16
|
|
|
3,600,000
|
|
|
0.18
|
|
|
5.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
The options have a contractual term of ten years. The aggregate
intrinsic value of options outstanding and exercisable was $0 at March 31, 2016.
At March 31, 2016, shares available for future stock option
grants to employees and directors under the 2012 Stock Option Plan were 4,500,000.
NOTE
8
. SUPPLEMENTAL SCHEDULE OF OPERATING
EXPENSES
|
|
Nine Months Ended
March 31, 2016
|
|
Nine Months Ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
Related Party
Contractor Fees (1)
|
|
$153,300
|
|
$270,000
|
Officer's Salary
|
|
77,000
|
|
107,855
|
Directors' Fees
|
|
82,500
|
|
91,355
|
Independent Contractors
|
|
150,295
|
|
181,125
|
Commission Expense
|
|
10,043
|
|
153,119
|
Professional Fees
|
|
90,366
|
|
109,604
|
Credit Card Processing Fees
|
|
16,479
|
|
26,576
|
Telephone and Data Lines
|
|
6,729
|
|
13,652
|
Other Operating Costs
|
|
88,126
|
|
86,973
|
|
|
|
|
|
Total Operating Expenses
|
|
$674,838
|
|
$1,040,259
|
|
|
|
|
|
(1) For the nine months ended March
31, 2015, related party
contractors included Marillion an affiliate of the Company that managed marketing and development for
the Company and provided the services
of Edward Dale as Chief Executive Officer of the
Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast
Publishing Platform. For the nine months ended March 31, 2016, related party
contractors include 21
st
Century Digital Media, Inc. (successor to
GHL Group) and Netbloo and Henry Pinskier who serves as the Company's Interim
Chief Executive Officer.
|
|
Three Months Ended
March 31, 2016
|
|
Three Months Ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
Related Party
Contractor Fees (1)
|
|
$46,500
|
|
$90,000
|
Officer's Salary
|
|
15,000
|
|
33,000
|
Directors' Fees
|
|
27,500
|
|
27,500
|
Independent Contractors
|
|
49,300
|
|
45,575
|
Commission Expense
|
|
2,348
|
|
4,140
|
Professional Fees
|
|
25,759
|
|
22,545
|
Credit Card Processing Fees
|
|
3,793
|
|
1,529
|
Telephone and Data Lines
|
|
1,724
|
|
3,920
|
Other Operating Costs
|
|
29,594
|
|
26,199
|
|
|
|
|
|
Total Operating Expenses
|
|
$201,518
|
|
$254,408
|
|
|
|
|
|
-12-
30DC, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
MARCH 31, 2016
(Unaudited)
(1) For the three months ended March
31, 2015, related party
contractors included Marillion an affiliate of the Company that managed marketing and development for
the Company and provided the services
of Edward Dale as Chief Executive Officer of the
Company, GHL Group, Ltd., whose President, Gregory H. Laborde is a Director and Netbloo which was the joint developer of the MagCast
Publishing Platform. For the three months ended March 31, 2016, related party
contractors include 21
st
Century Digital Media, Inc. (successor to GHL
Group) and Netbloo
NOTE 9. SUBSEQUENT EVENTS
On April 13, 2016, the Company issued 100,000 shares of the
Company's common stock as partial consideration for services of a contractor providing
the company with editorial and marketing services. For the 100,000 shares, the
Company recorded $4,200 as independent contractor expense based upon the
closing price of the Company's shares on the day the shares were issued.
On April 29, 2016, the Company issued 250,000
shares of the Company's common stock as partial consideration for services of a
contractor providing the company with support
and technical services. For
the 250,000 shares, the Company recorded $7,500
as independent contractor expense based upon the closing price of the Company's
shares on the day the shares were issued.
-13-