FORWARD-LOOKING STATEMENTS
There are statements in this quarterly report on Form 10-Q that are not
historical facts. These "forward-looking statements" can be identified by use of
terminology such as "believe", "hope", "may", "anticipate", "should", "intend",
"plan", "will", "expect", "estimate", "project", "positioned", "strategy", and
similar expressions. Although management believes that the assumptions
underlying the forward-looking statements included in this quarterly Report are
reasonable, they do not guarantee our future performance, and are subject to
certain risks, uncertainties and assumptions that are difficult to predict;
therefore, actual results and outcomes may differ materially from what is
expressed or forecasted in any such forward-looking statements.
OVERVIEW
Wall Street Media Co, Inc. (the "Company" "we" "us" "our") was organized as
Mycatalogsonline.com, Inc. in the state of Nevada on January 6, 2009. In April
2009, the Company changed its name to My Catalogs Online, Inc. In November 2012,
the Company changed its name to Bright Mountain Holdings, Inc., and in August
2013 changed its name to Wall Street Media Co, Inc.
The Company provides consulting and management services to entities looking to
merge with or acquire or otherwise consult with third party entities. These
services are currently provided to Landmark-Pegasus, Inc., a related party
("Landmark-Pegasus") or its clients. Landmark-Pegasus is wholly owned by John
Moroney, the Company's majority shareholder. Mr. Moroney also acts as
Landmark-Pegasus' President.
Impact of COVID-19
In March 2020, the World Health Organization declared COVID-19 a global pandemic
and recommended containment and mitigation measures worldwide. The Company is
monitoring this closely, and although operations have not been materially
affected by the COVID-19 outbreak to date, the ultimate duration and severity of
the outbreak and its impact on the economic environment and business is
uncertain. Accordingly, while the Company does not anticipate an impact to the
operations, we cannot estimate the duration of the pandemic and potential impact
on the business. In addition, a severe or prolonged economic downturn could
result in a variety of risks to the business, including a possible delay in
implementing the Company's business plan. At this time, the Company is unable to
estimate the ultimate impact of this event on its current or future operations.
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CRITICAL ACCOUNTING POLICIES
In response to the Securities and Exchange Commission's (the "SEC") financial
reporting release, FR-60, Cautionary Advice Regarding Disclosure About Critical
Accounting Policies, the Company has selected its more subjective accounting
estimation processes for purposes of explaining the methodology used in
calculating the estimate, in addition to the inherent uncertainties pertaining
to the estimate and the possible effects on the Company's financial condition.
These accounting estimates are discussed below. These estimates involve certain
assumptions that if incorrect could create a material adverse impact on the
Company's results of operations and financial condition.
Revenue Recognition
As of October 1, 2018, the Company adopted Revenue from Contracts with Customers
(Topic 606) ("ASC 606"). The new guidance sets forth a new five-step revenue
recognition model which replaces the prior revenue recognition guidance in its
entirety and is intended to eliminate numerous industry-specific pieces of
revenue recognition guidance that have historically existed in U.S. GAAP. The
underlying principle of the new standard is that a business or other
organization will recognize revenue to depict the transfer of promised goods or
services to customers in an amount that reflects what it expects to receive in
exchange for the goods or services. The Company adopted the standard using the
modified retrospective method and the adoption did not have a material impact on
its financial statements.
The Company provides consulting service currently to a single related party
customer and represents the Company's only revenue source. The Company
recognizes revenue when the performance obligation (i.e. consulting services)
with the customer is satisfied and when the service is provided. Revenue is
measured as the amount of consideration the Company expects to receive in
exchange for providing the service.
RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2020 COMPARED TO THE THREE MONTHS ENDED
DECEMBER 31, 2019
Revenue: The Company's revenues decreased approximately 30% to $20,000 during
the three months ended December 31, 2020 as compared to $28,500 for the three
months ended December 31, 2019 due to a decrease in consulting services
provided.
Operating Expenses: The Company's operating expenses increased by approximately
35% to $16,654 during the three months ended December 31, 2020 as compared to
$12,311 for the three months ended December 31, 2019 primarily due to an
increase in professional fees.
Income from operations: The Company's income from operations decreased
approximately 79% to $3,346 during the three months ended December 31, 2020 from
a net income from operations of $16,189 for the three months ended December 31,
2019. The primary reasons for this was due to a decrease in consulting services
provided and an increase in professional fees.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities was $1,246 for the three months ended
December 31, 2020 as compared to net cash used in operating activities of $7,311
for the three months ended December 31, 2019. The increase was primarily due to
the collection of accounts receivable - related party.
As of December 31, 2020, the Company had $10,630 in cash. The Company has
sustained losses from operations, and such losses are expected to continue. The
Company's auditors have included a "Going Concern Qualification" in their report
for the year ended September 30, 2020. In addition, the Company has a working
capital deficit and accumulated deficit at December 31, 2020 of $80,147 and
$1,404,547, respectively, with minimal revenues. The foregoing raises
substantial doubt about the Company's ability to continue as a going concern.
The Company is actively seeking to combine or merge with another operating
company. There can be no assurance that the level of funding needed will be
acquired or that the Company will generate sufficient revenues to sustain
operations for the next twelve months. The unaudited condensed financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
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RELATED PERSON TRANSACTIONS
100% of the Company's revenues for the quarters ended December 31, 2020 and 2019
were generated by an entity wholly owned by the Company's majority shareholder
or the entity's clients.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 2016, the FASB issued ASU 2016-02, "Leases" which, for operating
leases, requires a lessee to recognize a right-of-use asset and a lease
liability, initially measured at the present value of the lease payments, in its
balance sheet. The standard also requires a lessee to recognize a single lease
cost, calculated so that the cost of the lease is allocated over the lease term,
on a generally straight-line basis. The ASU is effective for public companies
for fiscal years beginning after December 15, 2018, including interim periods
within those fiscal years. Early adoption is permitted. This ASU was effective
for the Company on October 1, 2019 and it did not have a material impact on the
financial statements and disclosures of the Company since it does not have any
leases which meet the criteria.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources, that is material to investors.
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