EXHIBIT 99.1

 

UMEWORLD LIMITED

INTERIM CONSOLIDATED BALANCE SHEETS

AS AT JUNE 30, 2017 AND SEPTEMBER 30, 2016

(Unaudited)

(All amounts in US Dollars)

 

 

 

June 30,

 

 

September 30,

 

 

 

2017

 

 

2016

 

CURRENT ASSETS

 

(Unaudited)

 

 

(Audited)

 

Cash and Cash Equivalents

 

$ 15,515

 

 

$ 46,301

 

Accounts Receivable

 

 

232

 

 

 

265

 

Deposit

 

 

8,433

 

 

 

8,749

 

Prepayment

 

 

67,862

 

 

 

27,472

 

TOTAL CURRENT ASSETS

 

 

92,042

 

 

 

82,787

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

2,477

 

 

 

5,879

 

Loan Receivables

 

 

0

 

 

 

0

 

Deferred Charges

 

 

303,201

 

 

 

348,913

 

TOTAL NON-CURRENT ASSETS

 

 

305,678

 

 

 

354,792

 

TOTAL ASSETS

 

 

397,720

 

 

 

437,579

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts Payable and Accrued Liabilities

 

 

1,211,588

 

 

 

769,405

 

Unearned Revenue

 

 

370,081

 

 

 

376,046

 

TOTAL CURRENT LIABILITIES

 

 

1,581,669

 

 

 

1,145,451

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Notes Payable

 

 

2,514,966

 

 

 

2,112,101

 

TOTAL LIABILITIES

 

 

4,096,635

 

 

 

3,257,552

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIENCY

 

 

 

 

 

 

 

 

Common Stock: $ 0.0001 par value, Authorized: 250,000,000 shares; Issued and outstanding September 30, 2016; June 30, 2017 - 89,336,000

 

 

8,934

 

 

 

8,934

 

Additional paid-in capital

 

 

26,128,530

 

 

 

25,870,095

 

Deficit

 

 

(30,055,794 )

 

 

(28,916,005 )

Accumulated Other Comprehensive Loss

 

 

(9,316 )

 

 

(1,888 )

Non-controlling Interest

 

 

228,731

 

 

 

218,891

 

TOTAL STOCKHOLDERS’ EQUITY/ (DEFICIENCY)

 

 

(3,698,915 )

 

 

(2,819,973 )

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY/DEFICIENCY

 

$ 397,720

 

 

$ 437,579

 

 

 
1
 
 

 

UMEWORLD LIMITED

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED AND NINE MONTHS ENDED JUNE 30, 2017 AND 2016

(UNAUDITED)

(All amounts in US Dollars)

 

 

 

3 months ended

June 30,

2017

 

 

3 months ended

June 30,

2016

 

 

9 months ended

June 30,

2017

 

 

9 months ended

June 30,

2016

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Net Sales

 

$ 5,038

 

 

$ 0

 

 

$ 5,990

 

 

$ 0

 

Total Net Sales

 

$ 5,038

 

 

$ 0

 

 

$ 5,990

 

 

$ 0

 

General and Administrative Expenses

 

 

289,751

 

 

 

313,205

 

 

 

724,403

 

 

 

802,882

 

Depreciation

 

 

1,089

 

 

 

1,144

 

 

 

3,268

 

 

 

3,457

 

Stock-based compensation

 

 

28,762

 

 

 

242,362

 

 

 

258,435

 

 

 

317,244

 

Gain/(Loss) from Operations

 

 

(314,564 )

 

 

(556,711 )

 

 

(980,116 )

 

 

(1,123,583 )

OTHER INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Interest Income,

 

 

2

 

 

 

10

 

 

 

24

 

 

 

50

 

OTHER EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense, net

 

 

(50,705 )

 

 

(37,693 )

 

 

(148,000 )

 

 

(103,844 )

Gain/(Loss) before Income Taxes

 

 

(365,267 )

 

 

(594,394 )

 

 

(1,128,092 )

 

 

(1,227,377 )

Income Tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net Gain/(Loss)

 

 

(365,267 )

 

 

(594,394 )

 

 

(1,128,092 )

 

 

(1,227,377 )

Net Income/(Loss) attributable to Non-controlling interests

 

 

(3,890 )

 

 

(3,903 )

 

 

(11,697 )

 

 

(11,707 )

Net Gain/(Loss) attributable to UMeWorld Stockholders

 

 

(369,157 )

 

 

(598,297 )

 

 

(1,139,789 )

 

 

(1,239,084 )

Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Gain/(Loss)

 

 

(369,157 )

 

 

(598,297 )

 

 

(1,139,789 )

 

 

(1,239,084 )

Translation Adjustment

 

 

(6,437 )

 

 

(703 )

 

 

(9,284 )

 

 

(1,422 )

Comprehensive Gain/(Loss)

 

 

(375,594 )

 

 

(599,000 )

 

 

(1,149,073 )

 

 

(1,240,506 )

Less: Comprehensive Loss Attributable to Non-Controlling Interests

 

 

1,288

 

 

 

140

 

 

 

1,857

 

 

 

284

 

Comprehensive Gain/(Loss) Attributable to UMeWorld Stockholders

 

 

(374,306 )

 

 

(598,860 )

 

 

(1,147,216 )

 

 

(1,240,222 )

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Share, basic and diluted

 

$ (0.0042 )

 

$ (0.0067 )

 

$ (0.0128 )

 

$ (0.0139 )

Weighted Average Number of Common Shares Outstanding

 

 

89,336,000

 

 

 

89,336,000

 

 

 

89,336,000

 

 

 

89,336,000

 

 

 
2
 
 

  

UMEWORLD LIMITED

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

AS OF JUNE 30, 2017, AND SEPTEMBER 30, 2016

(UNAUDITED)

(All amounts in US Dollars)

    

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

Other Com-

 

 

 

 

 

UMeWorld

 

 

     Non-

 

 

 

 

 

 

Number of

 

 

 

 

 

Paid in

 

 

prehensive

 

 

 

 

 

Stockholders’

 

 

controlling

 

 

Total Gain/

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

 (Deficiency)

 

 

Deficiency

 

 

 Interest

 

 

(Deficiency)

 

Balance as of September 30, 2015 (Audited)

 

 

89,036,000

 

 

$ 8,904

 

 

$ 25,213,365

 

 

$ (1,286 )

 

$ (27,147,910 )

 

$ (1,926,927 )

 

$ 203,429

 

 

$ (1,723,498 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants Issued

 

 

 

 

 

 

 

 

 

 

566,760

 

 

 

 

 

 

 

 

 

 

 

566,760

 

 

 

 

 

 

 

566,760

 

Stock issued for Services

 

 

300,000

 

 

 

30

 

 

 

89,970

 

 

 

 

 

 

 

 

 

 

 

90,000

 

 

 

 

 

 

 

90,000

 

Foreign Currency Translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(602 )

 

 

 

 

 

 

(602 )

 

 

(150 )

 

 

(752 )

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,612

 

 

 

15,612

 

Net Gain/(Loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,768,095 )

 

 

(1,768,095 )

 

 

 

 

 

 

(1,768,095 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2016 (Audited)

 

 

89,336,000

 

 

$ 8,934

 

 

$ 25,870,095

 

 

$ (1,888 )

 

$ (28,916,005 )

 

$ (3,038,864 )

 

$ 218,891

 

 

$ (2,819,973 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants Issued

 

 

 

 

 

 

 

 

 

 

258,435

 

 

 

 

 

 

 

 

 

 

 

258,435

 

 

 

 

 

 

 

258,435

 

Foreign Currency Translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,428 )

 

 

 

 

 

 

(7,428 )

 

 

(1,857 )

 

 

(9,284 )

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,697

 

 

 

11,697

 

Net Gain/(Loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,139,789 )

 

 

(1,139,789 )

 

 

 

 

 

 

(1,139,789 )

Balance as of June 30, 2017

 

 

89,336,000

 

 

$ 8,934

 

 

$ 26,128,530

 

 

$ (9,316 )

 

$ (30,055,794 )

 

$ (3,927,646 )

 

$ 228,731

 

 

$ (3,369,914 )
 

 

 
3
 
 

 

UMEWORLD LIMITED

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED AND NINE MONTHS ENDED JUNE 30, 2017 AND 2016

(UNAUDITED)

(All amounts in US Dollars)

 

 

 

3 months

ended

June 30,

2017

 

 

3 months

ended

June 30,

2016

 

 

9 months

ended

June 30,

2017

 

 

9 months

ended

June 30,

2016

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Net Gain/(Loss)

 

$ (365,267 )

 

$ (594,394 )

 

$ (1,128,092 )

 

$ (1,227,377 )

Noncash item:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Controlling Interest

 

 

2,602

 

 

 

3,763

 

 

 

9,840

 

 

 

11,423

 

Adjustments to reconcile net income/(loss) to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,089

 

 

 

1,144

 

 

 

3,268

 

 

 

3,457

 

Stock based compensation

 

 

28,762

 

 

 

332,362

 

 

 

258,435

 

 

 

407,244

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease/(Increase) in Prepayment

 

 

(4,715 )

 

 

7,573

 

 

 

(40,390 )

 

 

9,889

 

Decrease/(Increase) in Deferred

 

 

8,173

 

 

 

25,110

 

 

 

45,712

 

 

 

59,440

 

Decrease/(Increase) in Accounts Receivable

 

 

109

 

 

 

82

 

 

 

33

 

 

 

(13 )

Decrease/(Increase) in Loans Receivable

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

(Decrease)/Increase in Accounts Payable and Accrued Liabilities

 

 

222,320

 

 

 

30,411

 

 

 

442,183

 

 

 

98,583

 

(Decrease)/Increase in Accrued Interest on Notes Payable

 

 

64,251

 

 

 

(22,686 )

 

 

155,115

 

 

 

57,834

 

Decrease/(Increase) in Deposit

 

 

41

 

 

 

260

 

 

 

316

 

 

 

392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY/USED IN OPERATING ACTIVITIES

 

 

(42,635 )

 

 

(216,375 )

 

 

(253,580 )

 

 

(579,128 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Purchase) / Sold of Machinery and Equipment

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

NET CASH PROVIDED BY INVESTING ACTIVITIES

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional Paid-In Capital

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Issuance / (cancellation) of Common Stock

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Issuance (repayment) of Notes Payable, net

 

 

38,784

 

 

 

182,212

 

 

 

247,750

 

 

 

228,983

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 

38,784

 

 

 

182,212

 

 

 

247,750

 

 

 

228,983

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(2,983 )

 

 

45,312

 

 

 

(24,956 )

 

 

48,910

 

NET (DECREASE)/INCREASE IN CASH

 

 

(6,834 )

 

 

11,149

 

 

 

(30,786 )

 

 

(301,235 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH, and cash equivalents, beginning of period

 

 

22,349

 

 

 

38,674

 

 

 

46,301

 

 

 

351,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH, and cash equivalents, end of period

 

$ 15,515

 

 

$ 49,823

 

 

$ 15,515

 

 

$ 49,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes Paid

 

$ 0

 

 

$ 0

 

 

$ 0

 

 

$ 0

 

Interest Paid

 

$ 0

 

 

$ 0

 

 

$ 0

 

 

$ 0

 

 

 

4