Video River Networks, Inc 10-Q, filed May 13, 2021

Video River Networks, Inc. (NIHK)

10-Q 2021-05-13 For: 2021-03-31

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Added on April 06, 2026

About this 10-Q

Video River Networks, Inc filed this 10-Q on May 13, 2021, covering the quarter ended March 31, 2021.

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Nevada		87-0627349
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

370 Amapola Ave., Suite 200A, Torrance California		90501
(Address of principal executive offices)		(Zip Code)

Large accelerated filer [ ]		Accelerated filer [ ]
Non-accelerated filer [ ]		Smaller reporting company [X]
(Do not check if smaller reporting company)		Emerging growth company [X]

VIDEO RIVER NETWORKS INC
CONSOLIDATED BALANCE SHEETS

	March 31, 2021		December 31, 2020
		(Unaudited)		(Audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	89,021	$	1,630
Investments - trading securities		387,376		91,282
Total Current Assets		476,397		92,912

Property and equipment, net	$	6,936	$	7,745
Investments - real estate		674,846		664,110.82
Crypto Currency Mining Rigs		9,200		-
Total assets		1,167,378		764,767

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accrued expenses		39,642		4,542
Accrued interest		4,218		2,812
Marginal loan payable		538		115
Line of credit - related party, current portion		13,232		63,632
Total Current Liabilities	$	57,630	$	71,102

Long-Term Liabilities:
Notes payable - net of current portion	$	150,000	$	150,000
Line of credit - related party, net of current portion		542,051		540,524
Total Long-Term Liabilities		692,051		690,524
Total Liabilities	$	749,682	$	761,626

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, $.001 par value, 10,000,000 shares authorized, 1 issued and outstanding as at March 31, 2021 and December 31, 2020 respectively.	$	-	$	-
Common Stock, $0.001 par value, 1,200,000,000 shares authorized, and 177,922,436 issued and outstanding as at March 31, 2021 and December 31, 2020 respectively.		177,922		177,922
Additional paid in capital		19,211,075		19,211,075
Accumulated deficit		(18,971,301)		(19,385,856)
Noncontrolling Interest		187,963		1,414
Total Stockholders’ Equity	$	417,696	$	3,141
Total Liabilities and Stockholders’ Equity		1,167,378		764,767

VIDEO RIVER NETWORKS INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	For the three months ended March 31,
			2021		2020
Revenue:
Sales of investments under trading securities		$	665,667	$	-
Sales of investment under property			-		495,000
Total Revenue			665,667		495,000

Cost of goods sold:
Cost of sales - trading securities			204,415		488,499
Cost of sales - property			-
Total cost of goods sold			204,415		488,499
Gross profit			461,251		6,501

Operating expenses:
General and administrative			15,004		16,161
Professional fees			73,082		-
Advertising and promotions			1,649		-
Interest expense			1,458		-
Total operating expenses			91,193		16,161
Income (loss) from operations			370,058		(9,660)

Other Income
Dividends			30		-
Unrealized gain (loss)			44,467		-
Net Income (Loss)			414,555		(9,660)

Earnings (loss) per Share: Basic and Diluted		$	0.002	$	(0.000)

Weighted Average Common Shares Outstanding: Basic and Diluted			177,922,436		177,922,436


The accompanying notes to unaudited condensed consolidated financial statements

VIDEO RIVER NETWORKS INC
STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT

						Additional
	Common	Preferred				Paid-In		Accumulated
	Shares	Shares		Amount		Capital		Deficit		Total

Balance at December 31, 2006	139,153,206	0	$	139,153	$	18,974,719	$	(19,113,872)	$	-

Balance at December 31, 2018	139,153,206	0	$	139,153	$	18,974,719	$	(19,113,872)	$	-
Issuance of common stock to employee	30,769,230			30,769						30,769
Net loss						-		(36,993)		(36,993)
										-
Balance, December 31, 2019	169,922,436	1	$	169,922	$	18,974,719	$	(19,150,865)	$	(6,224)
Issuance of common stock	8,000,000	-		8,000		13,978				21,978
Acquisition of business						70,367				70,367
Net loss								(82,980)		(82,980)
Balance, December 31, 2020	177,922,436	1	$	177,922	$	19,059,064	$	(19,233,845)	$	3,141
Net income				0		-		414,555		414,555
Balance, March 31, 2021	177,922,436	1	$	177,922	$	19,059,064	$	(18,819,290)	$	417,696

VIDEO RIVER NETWORKS INC
STATEMENTS OF CASHFLOWS
(Unaudited)

	For the three months ended March 31,
	2021		2020
Cash Flows from Operating Activities:
Net Income (Loss)	$	414,555	$	(9,660)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Inventory Asset: Trading Securities		(296,093)		-
Depreciation		809		-
Other Accrued Liabilities		22,006
Net Cash Flows Used in Operating Activities		141,277		(9,660)

Cash flows from investing activities:
Computer and Internet		-
Payment for real estate investment		(10,735)		354,163
Crypto Currency Mining Rigs		(9,200)
Net Cash Flows from Investing Activities		(19,935)		354,163

Cash flows from financing activities:
Proceeds from issuance of notes payable		-		-
Proceeds from issuance of marginal loan payable		422
Line of credit - short term - related party		14,500		(339,991)
Line of credit - long term - related party		(48,872)		-
Proceeds from issuance of stocks		-
New Cash Flows from Financing Activities		(33,950)		(339,990.59)

Net Change in Cash:		87,392	$	4,512

Beginning cash:		1,630		850
			$	0
Ending Cash:	$	89,021	$	5,362

Supplemental Disclosures of Cash Flow:
Cash paid for interest	$	1,458	$	0
Cash paid for tax	$	0	$	0

Supplemental Disclosures of Non-Cash Financing Activities
Shares issued to settle accounts payable	$	0
Shares issued to settle accruals - related parties	$	0

*January 1, 2021 to March 31, 2021*		*Total*
Revenue from sales of securities	$	665,667
Cost of securities		(204,415)
Net income from trading securities	$	461,251

		*March 31, 2021*		*December 31, 2020*
September 2019 (line of credit) - Line of credit with maturity date of September 14, 2022 with 0% interest per annum with unpaid principal balance and accrued interest payable on the maturity date.	$	13,232	$	63,632
May 20, 2020 (line of credit) Line of credit with maturity date of May 4, 2025 with 0% interest per annum with unpaid principal balance and accrued interest payable on the maturity date.		542,051		540,524
Total Line of credit - related party		555,283		604,156
Less: current portion		(13,232)		(63,632)
Total Long-term Line of credit - related party	$	542,051	$	540,524

	March 31,		December 31,
	2020		2020
Due from Affiliates


	$	0	$	0

Due to Affiliates
Due to Goldstein Franklin who have been lending operating capital to the company	$	13,232	$	63,632
Due to Los Angeles Community Capital – advance used to acquire Investment Real Estate		542,051		540,524

Total	$	555,283	$	604,156

*January 1, 2021 to March 31, 2021*		*Amount*
Net income	$	414,555
Dividends		-
Stock option		-
Adjusted net income attribution to stockholders	$	414,555

Weighted-average shares of common stock outstanding
Basic and Diluted		177,922,436
Net changes in fair value at end of the period
Basic and Diluted	$	0.002

	Percent			31-Mar-21		31-Dec-20

Federal statutory rates		34	%	$	(6,450,242)	$	(6,591,191)
State income taxes		5	%		(948,565)		(969,293)
Permanent differences		-0.5	%		94,856		96,929
Valuation allowance against net deferred tax assets		-38.5	%		7,303,951		7,463,555
Effective rate		0	%	$	-	$	-

	31-Mar-21		31-Dec-20
Deferred income tax asset
Net operation loss carryforwards		18,971,301		19,385,856
Total deferred income tax asset		7,398,808		7,560,484
Less: valuation allowance		(7,398,808)		(7,560,484)
Total deferred income tax asset	$	-	$	-

31-Mar-21	Cost			Changes in Fair Value	Fair Value

Stocks	$	297,466	$	52,899	$	350,365
Options		26,077		(7,482)		18,594
Warrants		19,366		(953)		18,413
Investments – Trading Securities	$	342,909	$	44,464	$	387,373

	Purchase Cost			Leasehold improvement	Total cost at March 31, 2021

SFR – 4904 S Wilton Place, 90062	$	498,984	$	175,862	$	674,846
Investments – Properties	$	498,984	$	175,862	$	674,846

	●	we do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”);

	●	we do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our limited size and early stage nature of operations, segregation of all conflicting duties may not always be possible and may not be economically feasible; however, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals;

	●	we do not have an independent audit committee of our Board of Directors;

	●	insufficient monitoring and review controls over the financial reporting closing process, including the lack of individuals with current knowledge of GAAP that led to the restatement of our previously issued financial statements; and

	●	we continue to outsource the functions of controller on an interim basis to assist us in implementing the necessary financial controls over the financial reporting and the utilization of internal management and staff to effectuate these controls.

Exhibit
Number		Description

31.1*		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act.

31.2*		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act.

32.1**		Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document

*	Filed herewith.
**	Furnished herewith.

	VIDEO RIVER NETWORKS, INC.

Date: May 13, 2021	By:	/s/ Frank I Igwealor
		Frank I Igwealor
		President, Chief Executive Officer and Interim Chief Financial Officer (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

/s/ Frank I Igwealor
Frank I Igwealor
President and Chief Executive Officer

/s/ Frank I Igwealor
Frank I Igwealor
Interim Chief Financial Officer