Video River Networks, Inc 10-Q, filed Dec 1, 2020

About this 10-Q

Video River Networks, Inc. (NIHK)

10-Q 2020-12-01 For: 2020-09-30

View Original

Added on April 06, 2026

Cost basis

SFR - 11253 S New Hampshire, 90044

SFR - 4904 S Wilton Place 90062

Total Holdings of Real Estate Investments

970,148

Video River Networks, Inc filed this 10-Q on December 1, 2020, covering the quarter ended September 30, 2020.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

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 September 30, 2020 (unaudited) and December 31, 2019 (audited)	2

Condensed Consolidated Statements of Operations for the Nine months ended September 30, 2020 and nine months ended September 30, 2020 and 2019 (unaudited)	3

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

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

Notes to the condensed consolidated financial statements (unaudited)	5

VIDEO RIVER NETWORKS INC
CONSOLIDATED BALANCE SHEETS
	As of		December 31,
	September 30, 2020		2019 (audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	5,341	$	850
Inventory Asset		22,961		-
Other Current Asset		186		-
Real Estate Investments		970,148		1,452,897
Total Current Assets		998,635		1,453,747
Fixed Assets
Fixed assets, net	$	13,249	$	-
Total Fixed Assets		13,249		-
TOTAL ASSETS	$	1,011,885	$	1,453,747
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accrued expenses		2,508		-
Current portion, notes payable		5,524		-
Total Current Liabilities	$	8,032	$	-

Long-Term Liabilities:
Notes payable	$	150,000	$	-
Notes payable - related party		930,350		1,459,971
Total Long-Term Liabilities		1,080,350		1,459,971
Total Liabilities	$	1,088,382	$	1,459,971

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, $.001 par value, 1,000,000 shares authorized, 1 issued and outstanding as at December 31, 2019 and September 30, 2020 respectively.	$	3	$	-

Common Stock, $0.001 par value, 1,200,000,000 shares authorized, 169,922,436 issued and outstanding as at December 31, 2019 and September 30, 2020 respectively		171,898		169,922
Additional paid in capital		19,197,097		18,974,719
Accumulated deficit		(19,445,493)		(19,150,865)
Total Kid Castle Stockholders’ equity		(42,073)
Non-controlling shareholders		(34,425)
Total Stockholders’ Equity (Deficit)	$	(76,497)	$	(6,224)
Total Liabilities and Stockholders’ Equity (Deficit)	$	1,011,885	$	1,453,747
The accompanying notes are an integral part of these consolidated financial statements

VIDEO RIVER NETWORKS INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	Nine Months Ended September 30					Three Months Ended September 30
	2020				2019	2020		2019

Net gain from sales of investments under trading securities		$	99,877	$	-	$	19,035	$	-
Sales - Investment property			1,205,000		-		-		-
Total Revenue			1,304,877		-		19,035		-

Cost of Investment Properties Sold			1,179,827		-		-		-
Gross Profit			125,050		-		19,035		-

OPERATING EXPENSES
General and administrative			42,923				8,095
Marketing and advertising			16,325		775		1,598		775
Amortization and depreciation			4,301				1,434
Professional fees			66,059		5,423		11,221		4,923
Total Expenses			129,608		6,198		22,347		5,698
INCOME FROM OPERATIONS			(4,559)		(6,198)		(3,312)	(5,698)

OTHER INCOME
Interest expense, net			-		-		-		-
Dividends			173		-		152		-
Unrealized gain (loss)			(128,233)		-		(39,515)		-
Total other income			(128,233)		-		(39,363)		-
INCOME (LOSS) BEFORE TAXES			(132,618)		(6,198)		(42,675)	(5,698)
INCOME TAX PROVISION			-		-		-		-
NET INCOME (LOSS)		$	(132,618)	$	(6,198)	$	(42,675)	$	(5,698)

Earnings (loss) per Share: Basic and Diluted		$	(0.00068)	$	(0.00003)	$	(0.0002)	$	(0.00)

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

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)
Consolidation Adjustment	-		1,975		222,378		(162,008)		62,345
Net income for the period							(132,618)		(132,618)

Balance, September 30, 2020	169,922,436	$	171,897	$	19,197,097	$	(19,445,491)	$	(76,497)
					Additional
	Common				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit		Total
Balances – July 1, 2020	169,922,436	$	169,922	$	18,974,719	$	(19,240,807)		(96,166)
Consolidation Adjustment	-		1,975		222,378		(162,008)		62,345
Net income for the period	-		-				(42,675)		(42,675)
Balance, September 30, 2020	169,922,436	$	171,897	$	19,197,097	$	(19,445,491)	$	(76,497)


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

VIDEO RIVER NETWORKS INC
STATEMENTS OF CASHFLOWS
(unaudited)
	Nine Months Ended September 30
	2020		2019
Cash Flows from Operating Activities:
Net Income (Loss)	$	(132,618)	$	(6,198)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Inventory Asset: Trading Securities		22,435		-
Accrued expenses		1,522		-
Depreciation		4,301		-
Net cash provided by (used in) operating activities		(104,360)		(6,198)

Net Cash Flows from Investing Activities:
Payment for real estate investment		(439,409)		(1,445,054)
Receipt from sales of real estate investment		922,159		-
Receipt from sales of other investment		41,579		-
Net cash provided by (used in) investing activities		524,328		(1,445,054)

Net Cash Flows from Financing Activities
Borrowing from brokerage loan - margin loan		1,208		-
Line of credit - short term - related party		122,431		-
Line of credit - long term - related party		(726,192)		1,452,443
Proceeds from issuance of long term loan		150,000		-
Proceeds from issuance of stock		25,697		-
Net cash provided by (used in) financing activities		(426,856)		1,452,443

Net increase (decrease) in cash:		(6,888)		1,191
Cash at the beginning of the period:		12,229
Cash at the end of the period:	$	5,341	$	1,191

Supplemental disclosures of cash flow information Cash paid during the period for:
Cash paid for interest	$	115.49	$	-
Cash paid for tax	$	-	$	-
The accompanying notes are an integral part of these consolidated financial statements

Description	Level 1		Level 2	Level 3

Investments – trading securities – September 30, 2020	$	22,960

*January 1, 2020 to September 30, 2020*		*Total*
Revenue from sales of securities	$	261,219
Cost of securities		(161,342)
Net trading revenue	$	99,876.72

	Three Months Ended September 30, 2020	Nine Months Ended September 30, 2020
Description	Amount		Amount
Sales - Investment property			$ 1,205,000
Closing costs			(11,522)
Commissions Paid			(60,645)
Developer’s Fees			(95,750)
Escrow & Title			(6,714)
Cost of Investment property sold			(917,825)
Old Liens Payoff			(51,879)
Property Taxes			(20,064)
Recording Charges			(7,048)
Seller Credit			(8,380)
Net Profit from Real Estate Investment Sales			$ 25,173

		*September 30, 2020*		*December 31, 2019*
September 2019 (line of credit) - Line of credit with maturity date of February 28, 2021 with 0% interest per annum with unpaid principal balance and accrued interest payable on the maturity date.	$	163,632	$	41,200
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.		766,717		-
July 3, 2020 (30 year term loan) Term loan with maturity date of July 2, 2050 with 3.75% interest per annum with unpaid principal balance and accrued interest payable on the maturity date.		150,000		-
Total Line of credit - related party		930,350		41,200
Less current portion		(163,632)		(41,200)
Total Line of credit - related party	$	766,718	$	-

*January 1, 2020 to September 30, 2020*		*Amount*
Net income	$	(132,618)
Dividends		-
Stock option		-
Adjusted net income attribution to stockholders	$	(132,618)

Weighted-average shares of common stock outstanding
Basic and Diluted		169,922,436
Net changes in fair value at end of the period
Basic and Diluted	$	(0.00068)

	Percent			30-Sep-20		31-Dec-19
Federal statutory rates		34	%	$	(6,611,468)	$	(6,511,294)
State income taxes		5	%		(972,275)		(957,543)
Permanent differences		-0.5	%		97,227		95,754
Valuation allowance against net deferred tax assets		-38.5	%		7,486,515		7,373,083
Effective rate		0	%	$	-	$	-

	30-Sep-20		31-Dec-19
Deferred income tax asset
Net operation loss carryforwards		19,445,493		19,150,865
Total deferred income tax asset		7,583,742		7,468,837
Less: valuation allowance		(7,583,742)		(7,468,837)
Total deferred income tax asset	$	-	$	-

*September 30, 2020*		Cost		Changes in Fair Value		Fair Value

Stocks	$	22,366	$	(6,403)	$	15,963
Options		20,955		(13,957)		6,998
Investments - Trading Securities	$	43,320	$	(20,360)	$	22,960

	·	*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;

*January 1, 2020 to September 30, 2020*		*Amount*

Total beginning balance - fair market	$	45,396
Total investment purchases - cost		266,958
Total investment sales - cost		(261,219)
Unrealized losses		(28,175)
Investment - Trading Securities	$	22,960


•	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: November 23, 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