CXN/Bio-Tracking Releases Quarterly Filings Continued.Business Editors MONTREAL, Quebec--(BUSINESS WIRE)--May 27, 2004 China Xin Network Media Corp. (CXIN:OTCBB OTCBB See OTC Bulletin Board (OTCBB). ) released its quarterly filings for March 31, 2004. The Company CHINA XIN NETWORK MEDIA CORPORATION is a Florida-registered corporation. As previously reported in press releases dated November 26, 2003 and December 2, 2003, the registrant An individual or organization that signs up (registers) for a training class or service. See domain name registrar. , has concluded the acquisition of Montreal Of Montreal is an American indie pop band formed in Athens, Georgia, fronted by Kevin Barnes. It was among the second wave of groups to emerge from The Elephant 6 Recording Company. (Canada) based Bio-Tracking Security Inc. (Bio-Tracking). Under the terms of the transaction, CXN CXN Checkerboard Nightmare (web comic) acquires 100% of the outstanding shares of the Bio- Tracking, in exchange for 100,000,000 shares of CXN. The closing of the transaction occurred December 2, 2003, as a result of which Bio-Tracking is now a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CXN. Capital Needs CXN anticipates that it will be required to raise an additional $4 million to fund the current plan of growth and existing operations through June 30, 2005. The principal source of capital has been equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. from investors and founders. Meeting the future financing requirements is dependent on access to equity capital markets. CXN may not be able to raise additional equity when required or may have to borrow on terms that may be dilutive to existing shareholders. Goodwill In July 2001, the FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). issued Statement No. 141, Business Combinations. and No. 142, Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Statement No. 141 supercedes the previous accounting standard on business combinations, Accounting Principles Board The Accounting Principles Board (APB) is the former authoritative body of the American Institute of Certified Public Accountants (AICPA). It was created by the American Institute of Certified Public Accountants in 1959 and issued pronouncements on accounting principles until 1973, Opinion No. 16. and requires that all business combinations initiated after June 30, 2001 must be accounted by the purchase method. Statement No. 141 also changes the requirements for recognizing assets as assets apart from goodwill in business combinations accounted for by the purchase method for which the date of the acquisition is July 1, 2001 or later. Under Statement No. 142, goodwill acquired in a business combination for which the acquisition date is after June 30, 2001, should not be amortized, but should be tested for impairment in accordance for the provisions of this accounting standard. Goodwill is the result of the acquisition of Bio-Tracking Security Inc. by the registrant on December 2, 2003. The closing price of the shares traded on December 2, 2003 was $0.05. The Goodwill is calculated as the excess of the fairvalue of the acquisition (the purchase method) over its tangible assets.
Results of Operations
Three Months Ended March 31,
2004 2003 % Change
Sales General &
Administrative $50,002 $331,384 -84.9%
CXN has worked diligently to reduce overhead and expenses while building shareholder value. As of March 31, 2004, Sales General and Administrative expenses were $50,002 versus $331,384 for the year-ago period. This represents a reduction of expenses of 84.9%.
Three Months Ended
March 31, 2004 December 31, 2003 % Change
Total Liabilities $38,463 $1,345,419 -97.1%
On March 31, 2004 the liabilities of the corporation were reduced 97.1%. The loan payable of $868,579 which represents security for the acquisition of Bio-Tracking was settled for the issuance of shares for the acquisition. As well, shares were issued to 3884368 Canada Inc. as per the agreement dated November 7, 2003 for the settling of debt. The end result of these transactions, the Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of CXN has increased to $4,962,153 from a deficit of $896,051. For the complete 10-QSB please go to http://www.sec.gov or http://www.bio-tracking.com |
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