UMeWorld Announces Unaudited Financial Results for the Six Months Ended March 31, 2018

Hong Kong, China (FSCwire) - UMeWorld Limited (OTC:UMEWF), a leading K-12 online learning and assessment platform in China, today announced its unaudited interim financial results for the six months ended March 31, 2018. All figures are expressed in U.S. dollars, unless otherwise stated.

Financial and Operational Highlights

  • Revenues increased by 4,757.88% from $952 to $46,247.
  • Cost of Revenues increased by 1,552.35% from $2,953 to $48,794.
  • Operating costs decreased by 36.99% from $421,213 to $265,403.
  • Operating loss decreased by 36.69% from $423,214 to $267,950.
  • Net cash used in operating activities was $308,642.
    Six Months EndedMarch 31,
    2018   2017   % of change
Revenues   46,247   952   4,757.88
Operating Expenses   265,403   421,213   -36.99
Net Loss Attributable to UMeWorld   529,838   591,850   -10.48
Net Loss Per Share Attributable to UMeWorld   (0.01)   (0.01)   -0.17

Michael Lee, UMeWorld's CEO, commented, "We are very excited that we have begun generating revenue from the Product Co-operation Agreement with China Mobile executed in October 2017 for the commercialization of UMFun, our online learning and assessment platform across China. These results show the continued progress we are making with China Mobile, as we deliver on our strategy to drive growth and efficiency.  As we gradually convert free UMFun users to paying subscribers within China Mobile's AND Education portal province by province, we expect to continue to generate revenues for the remainder of fiscal 2018."

Lawrence Liang, UMeWorld's COO, added, "Our objective is to have 1,000,000 paying subscribers by the end of December, 2018. We have seen paying subscriber numbers grow in the double digits since January 2018 and we exceeded 164,000 paid subscribers by the end of March 31, 2018. Prospective clients were invited to sign up for a three-month free membership, after which they would be offered a $1.50 monthly subscription that would be deducted from their phone bills. We have a scalable sales strategy in place with China Mobile ground agents and are confident that we will achieve our target of 1,000,000 paying subscribers by the end of 2018."

About UMeWorld Limited

We are an educational technology company and a visionary player in the online educational landscape in China. UMFun, our K-12 flagship product, is a cloud-based assessment and learning analytics platform that can intelligently analyze and adapt to a student's performance and personalizes the delivery of proprietary educational items in accordance with their individual learning needs. Working with China Mobile, we are levelling level the playing field for education. The kindergarten-to-grade-12 (K-12) educational system in China is the largest in the world, comprising approximately 210 million students. UMeWorld is on track to becoming a leading educational service provider in China.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for fiscal year ending September 30, 2018, quotations from management in this announcement, as well as UMeWorld's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other writ-ten materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our limited operations and need to expand in the near future; the potential lack of market acceptance of our products; our inability to raise additional capital to fund our operations and business plan; our ability to continue as a going concern; our ability to continue to attract UMFun paid subscribers; our ability to maintain and enhance the UMFun brand; and our ability to compete effectively against our competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and UMeWorld Limited undertakes no duty to update such information or any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and UMeWorld Limited undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Ruby Hui, Executive Vice President
UMeWorld Limited
E-mail: info@umeworld.com
Website: www.umeworld.com
Telephone: (852) 3708 3235

 

UMEWORLD LIMITED
CONSOLIDATED BALANCE SHEETS
(All amounts in US Dollars)

    March 31,                2018   September 30,2017
    (Unaudited)   (Audited)
ASSETS        
CURRENT ASSETS        
    Cash $ 16,166 $ 8,466
    Accounts receivable and other current assets   47,468   264
    Prepayment   1,063   18,343
    TOTAL CURRENT ASSETS   64,697   27,073
NON-CURRENT ASSETS        
    Property and equipment, net   365   4,877
    TOTAL NON-CURRENT ASSETS   365   4,877
TOTAL ASSETS $ 65,062 $ 31,950
         
LIABILITIES AND STOCKHOLDERS' DEFICIT        
CURRENT LIABILITIES        
    Accounts payable   256,918   256,242
    Due to related parties   821,938   1,154,424
    Accrued liabilities and other payables   229,324   298,700
    TOTAL CURRENT LIABILITIES   1,308,180   1,709,366
NON-CURRENT LIABILITIES        
    Notes payable   2,200,046   1,921,991
    Notes payable – related parties   522,491   434,722
    TOTAL NON-CURRENT LIABILITIES   2,722,537   2,356,713
TOTAL LIABILITIES $ 4,030,717 $ 4,066,079
STOCKHODERS' DEFICIT        
Common stock: $ 0.0001 par value, 250,000,000 shares authorized;        
    90,226,337 and 89,504,000 shares issued and outstanding at        
    March 31, 2018 and September 30, 2017   9,023   8,951
    Additional paid-in capital   25,995,986   25,404,058
    Accumulated deficit   (30,320,456)   (29,773,496)
    Accumulated other comprehensive income   111,032   93,905
Total UMeWorld Limited stockholders' deficit   (4,204,415)   (4,266,582)
    Noncontrolling interest   238,760   232,453
TOTAL STOCKHOLDERS' DEFICIT   (3,965,655)   (4,034,129)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 65,062 $ 31,950

 

UMEWORLD LIMITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME LOSS
(All amounts in US Dollars)
(Unaudited)

    For the Six Months Ended March 31,
    2018   2017
         
Revenues $ 46,247 $ 952
TOTAL REVENUES   46,247   952
         
Cost of revenues   (48,794)   (2953)
GROSS PROFIT   (2,547)   (2001)
         
OPERATING EXPENSES        
Selling, general and administrative expenses   265,403   421,213
TOTAL OPERATING EXPENSES   (265,403)   (421,213)
         
LOSS FROM OPERATIONS   (267,950)   (423,214)
         
OTHER EXPENSES        
    Other income   43   -
    Interest Income   8   22
    Interest expense   (271,312)   (182,195)
TOTAL OTHER EXPENSES   (271,261)   (182,173)
         
LOSS BEFORE INCOME TAXES AND NONCONTROLLING INTEREST   (539,211)   (605,387)
         
INCOME TAX EXPENSES   -   -
         
Net Loss   (539,211)   (605,387)
    Net income attributable to noncontrolling interests   7,749   7,807
Net loss attributable to UMeWorld Limited stockholders   (546,960)   (613,194)
         
Comprehensive Loss        
    Net loss attributable to UMeWorld Limited stockholders   (546,960)   (613,194)
    Total translation adjustment   15,685   20,775
    Comprehensive loss   (531,275)   (592,419)
Less: comprehensive income (loss) attributable to noncontrollingInterests    1,442              569
Comprehensive loss attributable to UMeWorld Limited stockholders    (529,833)    (591,850)
Net loss per share attributable to UMeWorld Limited stockholders        
Basic and diluted $ (0.01) $ (0.01)
Weighted average number of common shares outstanding        
Basic and diluted   89,722,610   89,336,000

 

UMEWORLD LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in US Dollars)
(Unaudited)

    For the Six Months Ended March 31,
    2018   2017
CASH FLOW FROM OPERATING ACTIVITIES        
Net Loss $ (539,211) $ (605,387)
Adjustments to reconcile net cash used in operating activities:        
    Depreciation expense   4,652   3,247
    Stock issued for service   14,680   -
    Amortization of debt discount   151,251   84,900
Changes in assets and liabilities:        
    Accounts receivable and other current assets   (47,204)   199
    Prepayment   17,280   (35,674)
    Accounts payable   676   36,056
    Accrued liabilities and other payables   43,234   221,123
    Due to related parties   46,000   60,000
NET CASH USED IN OPERATING ACTIVITIES $ (308,642) $ (235,536)
         
CASH FLOW FROM INVESTING ACTIVITIES        
    Purchase of machinery and equipment   -   -
NET CASH USED IN INVESTING ACTIVITIES $ - $ -
         
CASH FLOW FROM FINANCING ACTIVITIES        
    Proceeds from issuance of common stock   72,000   -
    Proceeds from note payables   256,350   149,706
    Proceeds from note payables – Related Parties   -   66,250
    Repayments to related parties   (27,426)   (533)
    Proceeds from related parties   319   -
NET CASH PROVIDED BY FINANCING ACTIVITIES $ 301,243 $ 215,423
         
Effect of exchange rate changes on cash and cash equivalents   15,099   (3,840)
NET INCREASE (DECREASE) CASH   7,700   (23,953)
Cash at beginning of year   8,466   46,302
Cash at end of year $ 16,166 $ 22,349
         
NON-CASH INVESTING AND FINANCING TRANSACTIONS        
Expenses paid by related parties $ 10,864 $ 96,071
Discount due to debt issued with warrants $ 126,124 $ 119,081
         
SUPPLEMENTARY DISCLOSURE:        
    Income Tax Paid $ - $ -
    Interest Paid $ - $ -

Source: UMeWorld Limited (OTC Pink:UMEWF)