Video River Networks, Inc 10-Q/A, filed Oct 13, 2020

Video River Networks, Inc. (NIHK)

10-Q/A 2020-10-13 For: 2020-06-30

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Added on April 06, 2026

About this 10-Q/A

Video River Networks, Inc filed this 10-Q/A on October 13, 2020, covering the quarter ended June 30, 2020.

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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 [ ]

PART I. – FINANCIAL INFORMATION

Item 1. Financial Statements	5

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3. Quantitative and Qualitative Disclosures about Market Risk	41

Item 4. Controls and Procedures	41

PART II. – OTHER INFORMATION

Item 1. Legal Proceedings	42

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	44

Item 3. Defaults Upon Senior Securities	44

Item 4. Mine Safety Disclosures	44

Item 5. Other Information	44

Item 6. Exhibits	44

Signatures	46

Condensed Consolidated Balance Sheets as of June 30, 2020 (unaudited) and December 31, 2019 (audited)	2

Condensed Consolidated Statements of Operations for the three months ended June 30, 2020 and six months ended June 30, 2020 and 2019 (unaudited)	3

Condensed Consolidated Statements of Changes in Shareholders’ Deficit for the six months ended June 30, 2020 and 2019 (unaudited)	4

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)	4

Notes to the condensed consolidated financial statements (unaudited)	5

VIDEO RIVER NETWORKS INC
CONSOLIDATED BALANCE SHEETS

	As of June 30, 2020 (unaudited)		December 31, 2019

ASSETS
Current Assets
Cash and Cash Equivalents	$	16,783	$	850
Total Current Assets		16,783		850

Real Estate Holdings		543,703		1,452,897
		543,703		1,452,897
Total Assets	$	560,486	$	1,453,747

LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts Payable	$		$
Loans – Related Parties		561,751		1,459,971
Total Liabilities		561,751		1,459,971

Shareholders' Deficit
Preferred stock, $.001 par value, 1,000,000 shares authorized, 1 issued and outstanding
Common stock ($0.001 par value)
1,119,000,000 shares authorized, no par 139,153,206 and 169,922,436 issued and outstanding on 6/30/2019 and 6/30/2020		169,922		169,922
Additional Paid-In Capital		18,974,719		18,974,719
Accumulated Deficit		(19,145,906)		(19,150,865)

Total Shareholders' Equity		(1,265)		(6,224)

Total Liabilities and Shareholders' Deficit	$	560,486	$	1,453,747

The accompanying notes are an integral part of these consolidated financial statements

VIDEO RIVER NETWORKS INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

	For the three months ended June 30,						For the six months ended June 30,
	2020		2019				2020	2019

REVENUE	$	710,000	$	-	$		1,205,000	$		-

COST OF SALES		691,328		-			1,179,827			-

GROSS PROFIT		18,672		-			25,173			-

OPERATING EXPENSES
Selling, general and administrative		4,053		500			20,214			500

Total Expenses		4,053		500			20,214			500

OPERATING PROFIT/LOSS		14,620		(500)			4,959			(500)


INCOME (LOSS) BEFORE TAXES		14,620		(500)			4,959			(500)

NET INCOME (LOSS)	$	14,620	$	(500)	$		4,959	$		(500)

Net Income (Loss) per Common Share: Basic and Diluted	$	0.00007	$	(0.000)	$		0.000025	$		(0.000)

Weighted Average Common Shares Outstanding: Basic and Diluted		196,223,806	139,153,206			196,223,806			139,153,206

The accompanying notes are an integral part of these condensed consolidated financial statements

VIDEO RIVER NETWORKS INC STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT

					Additional
	Common				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit		Total
Balance at December 31, 2006	139,153,206	$	139,153	$	18,974,719	$	(19,113,872)	$	-

Balance at December 31, 2018	139,153,206	$	139,153	$	18,974,719	$	(19,113,872)	$	-

Issuance of common stock to employee	30,769,230		30,769		-		-		30,769
Net income for the period	-		-		-		(36,993)		(36,993)
Balance, December 31, 2019	169,922,436	$	169,922	$	18,974,719	$	(19,150,865)	$	(6,224)
Net income for the period	0		0		-		4,959		4,959
Balance, June 30, 2020	169,922,436	$	169,922	$	18,974,719	$	(19,145,906)	$	(1,265)

					Additional
	Common				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit		Total
Balances – April 1, 2020	169,922,436	$	169,922	$	18,974,719	$	(19,160,525)	$	(15,884)
Net income for the period	-		-				14,620		14,620
Balance, June 30, 2020	169,922,436	$	169,922	$	18,974,719	$	(19,145,906)	$	(1,265)


The accompanying notes are an integral part of these consolidated financial statements

VIDEO RIVER NETWORKS INC
STATEMENTS OF CASHFLOWS
(unaudited)

	For the six months ended June 30,
	2020		2019

Cash Flows from Operating Activities:
Net Income (Loss)	$	4,959	$	(500)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Net Cash Flows Used in Operating Activities		4,959		(500)

Net Cash Flows from Investing Activities
Real Estate:SFR - 5125 Harold Way #307		555,031		(552,000)
Real Estate:SFR - 4904 S Wilton Place 90062		(12,965)		(530,739)
Real Estate:SFR - 831 E 94TH ST 90002		367,128		(334,000)
Net Cash Flows Used in Investing Activities		909,194		(1,416,739)

Net Cash Flows from Financing Activities

Loan from related parties		(898,220)		1,431,746
New Cash Flows from Financing Activities		(898,220)		1,431,746

Net Change in Cash:		15,933		14,508
Beginning cash:		850		-
Ending Cash:		16,783

Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	0	$	-
Cash paid for tax	$	0	$	-

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

The accompanying notes are an integral part of these consolidated financial statements

		Cost basis
		6/30/2020	12/31/2019

5125 Harold Way #307	$		$ 555,031
SFR - 831 E 94TH ST 90002			367,128
SFR - 4904 S Wilton Place 90062		543,703	530,739
	$	543,703	$ 1,452,897

	Three Months Ended June 30, 2020	Six Months Ended June 30, 2020
Description	Amount	Amount
Sales - Investment property	$ 710,000	$ 1,205,000
Closing costs	(8,803)	(11,522)
Commissions Paid	(35,895)	(60,645)
Developer Fees	(71,000)	(95,750)
Escrow & Title	(3,637)	(6,714)
Cost of Investment property sold	(555,031)	(917,825)
Old Liens Payoff	-	(51,879)
Property Taxes	(8,037)	(20,064)
Recording Charges	(3,976)	(7,048)
Seller Credit	(4,950)	(8,380)
Net Profit from Real Estate Investment Sales	$ 18,672	$ 25,173

	Percent			30-Jun-20		31-Dec-19
Federal statutory rates		34	%	$	(6,509,608)	$	(6,511,294)
State income taxes		5	%		(957,295)		(957,543)
Permanent differences		-0.5	%		95,730		95,754
Valuation allowance against net deferred tax assets		-38.5	%		7,371,174		7,373,083
Effective rate		0	%	$	-	$	-

	31-Mar-20		31-Dec-19
Deferred income tax asset
Net operation loss carryforwards		19,145,906		19,150,865
Total deferred income tax asset		7,466,903		7,468,837
Less: valuation allowance		(7,466,903)		(7,468,837)
Total deferred income tax asset	$	-	$	-

	·	*Affordable Housing.* Our motto is: “acquiring distressed/troubled properties, securing generous government subsidies, empowering low-income families, and generating above-market returns to investors.”
	·	*Preserving Financial Flexibility on our Balance Sheet.* We intend to focused on maintaining a conservative capital structure, in order to provide us flexibility in financing our growth initiatives.


•	Major metropolitan areas that have regional population in excess of one million;


•	Constraints on new supply driven by: (i) low availability of developable land sites where competing housing could be economically built; (ii) political growth barriers, such as protected land, urban growth boundaries, and potential lengthy and expensive development permit processes; and (iii) natural limitations to development, such as mountains or waterways;


•	Rental demand enhanced by affordability of rents relative to costs of for-sale housing; and


•	Housing demand based on job growth, proximity to jobs, high median incomes and the quality of life including related commuting factors.


•	Property Management – Oversee delivery and quality of the housing provided to our tenants and manage the properties financial performance.


•	Capital Preservation – The Company's asset management services are responsible for the planning, budgeting and completion of major capital improvement projects at the Company’s multifamily properties.


•	Business Planning and Control – Comprehensive business plans are implemented in conjunction with significant investment decisions. These plans include benchmarks for future financial performance based on collaborative discussions between on-site managers, the operations leadership team, and senior management.


•	Development and Redevelopment – The Company focuses on acquiring and developing apartment multifamily properties in supply constrained markets, and redeveloping its existing multifamily properties to improve the financial and physical aspects of the Company’s multifamily properties.


•	Strong economic growth leading to household formation and job growth, which in turn should support higher demand for our properties; and
•	An attractive quality of life, which may lead to higher demand and retention for our properties and allow us to more readily increase rents.

	●	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

	VIDEO RIVER NETWORKS, INC.

Date: October 12, 2020	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