The accompanying notes are an integral part of the
financial statements.
MIKE THE PIKE PRODUCTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2023, AND 2022
(UNAUDITED)
| |
|
|
|
|
|
|
|
|
| |
|
2023 |
|
2022 |
| |
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Net Loss |
|
$ |
(8,099 |
) |
|
|
(689 |
) |
| |
|
|
|
|
|
|
|
|
| Adjustments to reconcile Loss to net cash provided (used) in operating activities: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Amortization & Depreciation |
|
|
2,890 |
|
|
|
147 |
|
| |
|
|
|
|
|
|
|
|
| Increase/ (decrease) in accounts payable |
|
|
— |
|
|
|
542 |
|
| |
|
|
|
|
|
|
|
|
| Increase/ (decrease) in accrued salaries |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Increase/ (decrease) in accrued interest payable |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| NET CASH PROVIDED (USED IN) OPERATING ACTIVITIES |
|
|
(5,209 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Purchase of intangible assets |
|
|
— |
|
|
|
10,000 |
|
| |
|
|
|
|
|
|
|
|
| NET CASH PROVIDED (USED IN) INVESTING ACTIVITIES |
|
|
— |
|
|
|
(10,000 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (Decrease)/Increase in notes payable |
|
|
— |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (Decrease)/Increase in Due to Stockholder |
|
|
5,209 |
|
|
|
10,000 |
|
| |
|
|
|
|
|
|
|
|
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES |
|
|
5,209 |
|
|
|
10,000 |
|
| |
|
|
|
|
|
|
|
|
| NET INCREASE (DECREASE) IN CASH |
|
|
0 |
|
|
|
0 |
|
| |
|
|
|
|
|
|
|
|
| CASH AND EQUIVALENTS, BEGINNING OF PERIOD |
|
|
0 |
|
|
|
0 |
|
| |
|
|
|
|
|
|
|
|
| CASH AND EQUIVALENTS, END OF PERIOD |
|
$ |
0 |
|
|
$ |
0 |
|
| |
|
|
|
|
|
|
|
|
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the
financial statements.
MIKE THE PIKE PRODUCTIONS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
MARCH 31, 2023, AND 2022
NOTE 1 - ORGANIZATION AND OPERATIONS
Mike The Pike Productions, Inc. (the “Company”)
is the successor entity to the business of Pine Ridge Holdings Inc. a corporation formed in Nevada in 2001.
Prior to August, 2009 the Company was a Nevada corporation
named Pine Ridge Holdings, Inc. engaged in the business of providing energy generation products. On April 24th 2009 Kevin May resigned
and transferred ownership of shares to Mark B. Newbauer who was appointed President and CEO. On August 5th, 2009, the name was changed
from Pine Ridge Holdings, Inc. to Mike The Pike Productions, Inc.
On December 6, 2009, the Company acquired all of the
assets of Mike The Pike Productions, Inc. of Wyoming in exchange for 10,000,000 restricted shares of common stock. Concurrently with the
Acquisition, the management of the Wyoming Corporation took control of the Board of Directors of the Company and the assets of the Company
related to the energy business were spun-off to entity controlled by the previous management of the Company. On October 5, 2010 a merger
was formed to re-domicile the company in Wyoming and Mike The Pike Productions, Inc. survived the merger as a Wyoming Company.
NOTE 2 – GOING CONCERN ANALYSIS
The Company was incorporated on August 5, 2009 and
has not generated significant revenues to date. During the three months ended March 31, 2023 and 2022, the Company had net loss of $8,099
and $689 respectively and no cash flow from operating activities of. As of March 31, 2023 and 2022, the Company’s cash balance was
$0. The Company has been dormant for many years. These factors raise substantial doubt about the Company’s ability to continue as
a going concern. The Company expects to continue to generate operating losses for the foreseeable future. The accompanying consolidated
financial statements do not include any adjustments as a result of this uncertainty.
Management Plans
Throughout the next twelve months, the Company intends
to fund its operations primarily from owner and third party funding.
The Company requires capital for its contemplated
activities. The Company’s ability to raise additional capital is unknown. The obtainment of additional financing, the successful
development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations
are necessary for the Company to continue operations. These conditions and the ability to successfully resolve these factors raise substantial
doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments
that may result from the outcome of these uncertainties.
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
A. PRINCIPALS OF CONSOLIDATION
These consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiaries Arowana Media Holdings, Inc. and Mike The Pike LLC incorporated in the state
of Wyoming and Servenation, Inc. (inactive). All material inter-company balances and transactions were eliminated upon consolidation.
B. BASIS OF ACCOUNTING
The Company’s financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the
rules and regulations of the Securities and Exchange Commission (“SEC”).
C. USE OF ESTIMATES
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the period. Actual results could differ from those estimates.
D. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand; cash
in banks and any highly liquid investments with maturity of three months or less at the time of purchase. The Company maintains cash and
cash equivalent balances at several financial institutions, which are insured by the Federal Deposit Insurance Corporation for up to $250,000.
E. COMPUTATION OF EARNINGS PER SHARE
Net income per share is computed by dividing the net
income by the weighted average number of common shares outstanding during the period. Due to the net loss, the options and stock conversion
of debt are not used in the calculation of earnings per share because the stock conversions and options are considered to be antidilutive.
F. INCOME TAXES
The Company uses the liability method of accounting
for income taxes as set forth in ASC 740, Income Taxes. Under the liability method, deferred taxes are determined based on the temporary
differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the
years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will
not be realized.
We assess our income tax positions and record tax
benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting
date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained,
our policy will be to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with
a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood
that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements.
G. REVENUE RECOGNITION
The adoption of ASC 606 (Revenue From Contracts
With Customers) represents a change in accounting principle that will more closely align revenue recognition with the delivery of
the Company’s services and will provide financial statement readers with enhanced disclosures. In accordance with ASC 606, revenue
will be recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to
which the Company expects to be entitled to receive in exchange for these services. To achieve this core principle, the Company applies
the following five steps:
1) Identify
the contract with a customer
2) Identify
the performance obligations in the contract
3) Determine
the transaction price
4) Allocate
the transaction price to performance obligations in the contract
5) Recognize
revenue when or as the Company satisfies a performance obligation
The Company has not recognized any revenue to-date.
I. FAIR VALUE MEASUREMENT
The Company adopted Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements. ASC Topic 820 clarifies
the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs
used in measuring fair value.
The Company determines the fair value of a financial
instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a
forced sale or liquidation. The carrying amounts reported in the balance sheet for cash, accounts receivable, inventory, accounts payable
and accrued expenses, and loans payable approximate their fair market value based on the short-term maturity of these instruments.
Fair value measurements are determined based on the
assumptions that market participants would use in pricing an asset or liability. US GAAP establishes a hierarchy for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable
inputs be used when available. The established fair value hierarchy prioritizes the use of inputs used in valuation methodologies into
the following three levels:
| |
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available. |
| |
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
| |
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method. |
The Company did not identify any assets or liabilities
that are required to be presented on the balance sheets at fair value in accordance with ASC Topic 820.
Due to the short-term nature of all financial assets
and liabilities, their carrying value approximates their fair value as of the balance sheet dates.
J. RECENT ACCOUNTING PRONOUNCEMENTS
The FASB issues ASUs to amend the authoritative literature
in ASC. There have been several ASUs to date, including those above, that amend the original text of ASC. Management believes that those
issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not
expected to have a significant impact on our financial statements.
K. INTANGIBLE ASSETS
Intangible assets are stated at cost less accumulated
amortization. For intangible assets that have finite lives, the assets are amortized using the straight-line method over the estimated
useful lives of the related assets. For intangible assets with indefinite lives, the assets are tested periodically for impairment.
L. IMPAIRMENT OF LONG-LIVED ASSETS
The Company tests long-lived assets or asset groups
for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which
could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes
in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition
or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing
losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly
before the end of its estimated useful life.
Recoverability is assessed based on the carrying amount
of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from
the use and the eventual disposal of the asset, as well as specific appraisal in certain instances.
An impairment loss is recognized when the carrying
amount is not recoverable and exceeds fair value.
The Company depends upon capital to be derived from
future financing activities such as subsequent offerings of its common stock or debt financing in order to operate and grow the business.
There can be no assurance that the Company will be successful in raising such capital. The key factors that are not within the Company’s
control and that may have a direct bearing on operating results include, but are not limited to, acceptance of the Company’s business
plan, the ability to raise capital in the future, the ability to expand its customer base, and the ability to hire key employees to provide
services. There may be other risks and circumstances that management may be unable to predict.
The financial statements do not include any adjustments
to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities
that may result from the possible inability of the Company to continue as a going concern.
NOTE 4 – INTANGIBLE ASSETS
Intangible Assets at March 31, 2023 and December 31,
2022 consists of the following:
| Schedule of Intangible Assets | |
| |
|
| | |
MARCH 31, 2023 | |
DECEMBER 31, 2022 |
| | |
| |
|
| Intangible Assets | |
$ | 17,500 | | |
$ | 17,500 | |
| Less: Accumulated Amortization | |
| (10,179 | ) | |
| (7,289 | ) |
| Net Intangible Assets | |
$ | 7,321 | | |
$ | 10,211 | |
The Company invests in various intellectual properties
such as short stories and novels to be developed into future movie projects. By definition these intangible assets are amortized over
an 18-month period. Amortization expense for the three months ended March 31, 2023, and 2022 was $2,890 and $147 respectively. At March
31, 2023 and December 31, 2022, the Company has determined that the intangible asset should not be impaired.
NOTE 5 – ACCRUED COMPENSATION
The Company has entered into an employment agreement
with its CEO to pay him an annual salary of $60,000. This salary of $60,000 was accrued for the years ended December 31, 2014 and December
31, 2015 and $15,000 in December 30, 2016 respectively. The agreement was suspended June 30, 2016. The balance at December 31, 2022 was
$0 and December 31, 2021 was $0 respectively and it was been determined that the balance
shall be written off in 2021.
NOTE
6 –STOCKHOLDERS’ EQUITY/ (DEFICIT)
AUTHORIZED SHARES & TYPES
Common Stock
2,249,000,000 common authorized, 2,227,000,000 issued and outstanding at
March 31, 2023 and March 31, 2022, respectively.
Our authorized capital common stock is 2,249,000,000
shares of $0.001 par value. Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by
the stockholders. Holders of common stock do not have cumulative voting rights. Holders of common stock are entitled to share ratably
in dividends, if any, as may be declared from time to time by the Board of Directors in its discretion from funds legally available. In
the event of a liquidation, dissolution or winding up of the company, the holders of common stock are entitled to share pro rata all assets
remaining after payment in full of all liabilities. All of the outstanding shares of common stock are fully paid and non-assessable.
Holders of common stock have no preemptive rights
to purchase the Company’s common stock. There are no conversion or redemption rights or sinking fund provisions with respect to
the common stock.
Preferred stock
100,000,000 preferred authorized, 2,415,152 issued
and outstanding at March 31, 2023 and March 31, 2022 respectively.
Our authorized capital preferred stock is 100,000,000
shares of $0.001 par value preferred stock. Pursuant to our Articles of Incorporation, our board has the authority, without further stockholder
approval, to provide for the issuance of up to 100,000,000 shares of our preferred stock in one or more series and to determine the dividend
rights, conversion rights, voting rights, rights in terms of redemption, liquidation preferences, the number of shares constituting any
such series and the designation of such series. Our board has the power to afford preferences, powers and rights (including voting rights)
to the holders of any preferred stock preferences, such rights and preferences being senior to the rights of holders of common stock.
Our Board of Directors have designated a single
Series of Preferred Stock designated as Series A Preferred. Series A Preferred Shares are convertible to common stock at the rate of one
Share of preferred to 1,000 shares of common after notice to the Corporation by the holder, only when there is both sufficient common
stock available for conversion and a sufficient number of common stock shares are authorized by the Corporation. Preferred shares enjoy
voting rights at the rate of 1/1000 (one to one thousand) with common stock and shall be entitled to vote when the holders of common stock
shall have the right to vote.
Dividends
We have not paid any dividends on our common stock
and do not presently intend to pay cash dividends prior to the consummation of a business combination. The payment of cash dividends in
the future, if any, will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition subsequent
to consummation of a business combination, if any. The payment of any dividends subsequent to a business combination, if any, will be
within the discretion of our then existing board of directors. It is the present intention of our board of directors to retain all earnings,
if any, for use in our business operations and, accordingly, the board of directors does not anticipate paying any cash dividends in the
foreseeable future.
NOTE 7 – INCOME TAXES
Deferred tax assets arising as a result of net operation
loss carry forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods.
Based on its evaluation, the Company has concluded
that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company’s evaluation
was performed for the tax years ended December 31, 2021 and 2019 for U.S. Federal Income Tax and for the State of Wyoming.
The Company has net operating loss carry forwards
in the amount of approximately $1,394,749 that will expire beginning in 2024. The deferred tax assets including the net operating loss
carry forward tax benefit of $1,394,749 total $918,000 which is offset by a valuation allowance. The other deferred tax assets include
accrued officer compensation, stock based compensation, and amortization. The
Company’s ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income.
The Company follows the provisions of uncertain tax
positions. The Company recognized approximately no increase in the liability for unrecognized tax benefits.
The Company has no tax position at December 31, 2022
and 2021 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.
NOTE 8 – RELATED PARTY TRANSACTIONS
During the Three months end March 31, 2023 and 2022,
the Company’s CEO had advanced $5,209 and $10,000 respectively of personal funds. As of December 31, 2022 and 2021 the Company owed
the CEO $141,112 and $128,403 respectively.
NOTE 9 - SUBSEQUENT EVENTS
Subsequent events were evaluated through June 14, 2023 which is the date
the financial statements were available to be issued. There were no events that would require additional disclosure at the time of financial
statement presentation.
