Attached files

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8-K/A - FORM 8-K/A - MULTIMEDIA PLATFORMS INC.mmpw_8ka.htm
EX-23.1 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - MULTIMEDIA PLATFORMS INC.mmpw_ex231.htm
EX-99.3 - PRO FORMA FINANCIAL INFORMATION - MULTIMEDIA PLATFORMS INC.mmpw_ex993.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS AND NOTES - MULTIMEDIA PLATFORMS INC.mmpw_ex991.htm

EXHIBIT 99.2

 

RND ENTERPRISES, INC.

 

INTERIM FINANCIAL STATEMENTS 

FOR THE THREE MONTHS ENDED  

MARCH 31, 2015 AND 2014

 

CONTENTS

 

 

PAGE

 

 

Balance Sheets

2

 

 

Statements of Operations

3

 

 

Statements of Cash Flows

4

 

 

Notes to the Financial Statements

5

 

 
1
 

 

RND Enterprises, Inc.

Balance Sheets

 

 

 

March 31,

 

 

December 31,

 

 

 

2015

 

 

2014

 

Assets

 

(Unaudited) 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$ 7,300

 

 

$ 6,339

 

Accounts receivable, net of allowance for doubtful accounts

 

 

72,039

 

 

 

70,163

 

Other current assets

 

 

600

 

 

 

950

 

Total current assets

 

 

79,939

 

 

 

77,452

 

Total assets

 

$ 79,939

 

 

$ 77,452

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable & accrued expenses

 

$

21,364

 

 

$

41,799

 

Total Current Liabilities

 

 

21,364

 

 

 

41,799

 

 

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

Shareholder loans

 

 

397,500

 

 

 

397,415

 

Total long-term liabilities

 

 

397,500

 

 

 

397,415

 

Total liabilities

 

 

418,864

 

 

 

439,214

 

 

 

 

 

 

 

 

 

 

Stockholders' (Deficit)

 

 

 

 

 

 

 

 

Common stock, no par value; 200 shares issued and outstanding at March 31, 2015 and December 31, 2014.

 

 

2,463,746

 

 

 

2,378,826

 

Accumulated (deficit)

 

 

(2,802,671 )

 

 

(2,740,588 )

Total stockholders' equity (deficit)

 

 

(338,925 )

 

 

(361,762 )

Total liabilities and stockholders' (deficit)

 

$ 79,939

 

 

$ 77,452

 

 

(The accompanying notes are an integral part of these financial statements)

 

 
2
 

 

RND Enterprises, Inc.

Statements of Operations (Unaudited)

For the Three Months Ended March 31, 2015 and 2014

 

 

 

Three Months Ended March 31,

 

 

 

2015

 

 

2014

 

Income

 

 

 

 

 

 

Revenue

 

$ 182,738

 

 

$ 231,784

 

Cost of revenue

 

 

118,877

 

 

 

125,538

 

Gross profit

 

 

63,861

 

 

 

106,246

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

125,944

 

 

 

167,476

 

Total operating expenses

 

 

125,944

 

 

 

167,476

 

Net loss before provision for income taxes

 

 

(62,083 )

 

 

(61,230 )

Provision for income taxes

 

 

-

 

 

 

-

 

Net loss

 

$ (62,083 )

 

$ (61,230 )

 

(The accompanying notes are an integral part of these financial statements)

 

 
3
 

 

RND Enterprises, Inc.

Statements of Cash Flows (Unaudited)

For the Three Months Ended March 31, 2015 and 2014

 

 

 

Three Months Ended March 31,

 

 

 

2015

 

 

2014

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$ (62,083 )

 

$ (61,230 )

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

 

 

 

 

 

 

 

 

Depreciation

 

 

-

 

 

 

2,717

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

(Increase) decrease in accounts receivable, net

 

 

(1,876 )

 

 

(6,197 )

(Increase) decrease in other current assets

 

 

350

 

 

 

-

 

Increase (decrease) in bank overdraft

 

 

-

 

 

 

5,300

 

Increase (decrease) in accounts payable and accrued expenses

 

 

(20,434 )

 

 

(9,247 )

Net cash provided by (used) in operating activities

 

 

(84,043 )

 

 

(68,657 )
 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from shareholder loans

 

 

84

 

 

 

-

 

Payments of shareholder loans

 

 

-

 

 

 

(1,500 )

Net equity proceeds from related parties

 

 

84,920

 

 

 

66,945

 

Net cash provided by (Used) in financing activities

 

 

85,004

 

 

 

65,445

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash

 

 

961

 

 

 

(3,212 )

Cash and cash equivalents at beginning of period

 

 

6,339

 

 

 

3,212

 

Cash and cash equivalents at end of period

 

$ 7,300

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

 

 

Taxes paid

 

$ -

 

 

$ -

 

Interest paid

 

$ -

 

 

$ -

 

 

(The accompanying notes are an integral part of these financial statements)

 

 
4
 

 

RND ENTERPRISES, INC.

NOTES TO AUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014

 

Note 1 – Organization and Nature of Operations

 

RND Enterprises, Inc. (“RND”, the “Company”) is a New York Corporation. RND publishes Next Magazine, a comprehensive, weekly and free lifestyle resource for gay men with a decidedly New York attitude. Next Magazine highlights both popular and under-the-radar events, personalities and products that appeal to a diverse range of gay men around the world through a variety of portals that includes our 20-year-old print publication, engaging and interactive website, colorful weekly digital newsletters and extensive social media presence. Next Magazine’s provocative and informed commentary on a variety of topics—including nightlife, dining, entertainment, politics, fashion, travel, sports and celebrity— informs a community and engages an influential and loyal readership. Our content-driven format provides a unique user engagement that sets Next Magazine apart from other weekly publications.

 

Note 2 – Going Concern

 

As reflected in the accompanying financial statements, as of and for the three months ended March 31, 2015, the Company had a net loss of $62,083, used $84,043 of cash in operations and had a stockholders’ deficit of $2,802,671. These factors raise substantial doubt about The Company’s ability to continue as a going concern.

 

The Company is currently generating revenues though it is not sufficient to meet its operating expenses. Since inception, The Company has funded its short falls through related party advances. The Company's future operations are dependent upon its ability to increase revenues along with additional external funding as needed.

 

There can be no assurance that The Company will be successful in its efforts and this raises substantial doubt about the Company’s future. Should The Company be unable to obtain adequate financing or generate sufficient revenue in the future, The Company’s business, results of operations, liquidity and financial condition would be materially and adversely harmed, and may not be able to continue as a going concern.

 

Note 5 – Shareholder Loans

 

From time to time advances were made to RND from its shareholders and were used to cover the short fall of ongoing production and overhead expenses not covered by advertising revenue. The balance of the shareholder loans was $397,500 and $397,415 as of March 31, 2015 and December 31, 2014, respectively, and are non-interest bearing.

 

Note 6 – Related Party Transactions

 

The Company was owned by a single majority shareholder who was also majority or sole shareholder of approximately three other companies. From time to time, these companies, including RND, transacted business between each other. The resulting balance has been recorded to Common Stock on the face of the balance sheet.

 

Note 7 – Subsequent Events

 

On June 17, 2015, the Company entered into an Asset Purchase Agreement with Multimedia Platforms, Inc. pursuant to which Multimedia Platforms, Inc. purchased substantially all of the assets of RND from its sole shareholder Mr. David Moyal, for a purchase price of $1,000,000, consisting of $200,000 in cash and $800,000 in shares of common stock. Immediately prior to the transaction, the 5% shareholder of RND transferred all his interests in RND to Mr. Moyal for nominal amount. In consideration, the Company agreed to pay to the minority shareholder $30,000 in cash and issue 750,000 shares of common stock. The transaction was closed on June 17, 2015.

 

   

 

5