ChinAmerica Andy Movie Entertainment Media Co.
(Exact name of registrant as specified in its charter)

	Florida		65-1170540
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
15500 Roosevelt Blvd. Suite 305 Clearwater, FL  33760
(Address of principal executive offices) (Zip code)
(941) 224-6975
(Registrant's telephone number, including area code)

Large accelerated filer.☐

Accelerated filer.   ☐

Non-accelerated filer.  ☐ (Do not check if a smaller reporting company)

Smaller reporting company.  ☑

 

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PART I – FINANCIAL INFORMATION

ITEM 1.                  FINANCIAL STATEMENTS

CHINAMERICA ANDY MOVIE ENTERTAINMENT MEDIA CO.

BALANCE SHEETS

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

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(All amounts shown in U.S. Dollars)		Three months ended March 31, (unaudited)
		2015				2014
Revenue		$	-			$	822,500
Expenses
General and administrative – related party			19,050				82,250
General and administrative			11,326				6,427
Total operating expenses			30,376				88,677
Operating (Loss) Income			(30,376	)			733,823
Other income (expense)
Income tax adjustment			10,177				(273,800	)
Interest income			3,093				229
Total other income (expense), net			13,270				(273,571	)
Net (Loss) Income			(17,106	)			460,252
Foreign currency translation			(2,915	)			(16,379	)
Comprehensive Income			(20,021	)			443,873
Earnings (loss) per share - basic and dilutive		$	(0.00	)		$	0.00
Weighted average shares			125,628,400				124,396,178

CHINAMERICA ANDY MOVIE ENTERTAINMENT MEDIA CO.

STATEMENTS OF CASH FLOWS

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

 

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CHINAMERICA ANDY MOVIE ENTERTAINMENT MEDIA CO.

NOTES TO FINANCIAL STATEMENTS

March 31, 2015

Organization.

ChinAmerica Andy Movie Entertainment Media Co.("CAME" or the "Company")  was incorporated under the laws of the State of Florida on September 26, 2002. The Company's headquarters are located in Clearwater, Florida.

Basis of Presentation and Use of Estimates.  In the opinion of management, all adjustments consisting of normal recurring adjustments necessary for a fair statement of (a) the result of operations for the three month periods ended March 31, 2015 and 2014; (b) the financial position at March 31, 2015; and (c) cash flows for the three month periods ended March 31, 2015 and 2014, have been made. Management believes that these estimates are reasonable and have been discussed with the Board of Directors; however, actual results could differ from those estimates.

 

The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company's significant accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission on April 1, 2015.

Cash and Cash Equivalents.  The majority of cash for our Subsidiary is maintained with a major financial institution in Shanghai, China. There are also funds held in the United States.  Deposits with these banks may exceed the amount of insurance provided on such deposits.  Generally, these deposits may be redeemed on demand and, therefore, bear minimal risk.  The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is stated in USD unless otherwise stated.

Foreign Currency Translation.  The Company addressed the effect of the exchange rate differences resulting from the translation for currency transferred to the Company for consulting services from an account held by AF Ocean Shanghai in China, by using the current day exchange rate from ¥CNY to $USD conversion. The accumulated other comprehensive income for the three month period ended March 31, 2015 was a net gain of $2,915. The effect of the foreign currency translation is recorded in comprehensive income. The relative value of the Chinese CNY to the United States USD remained relatively constant during the three month period ended March 31, 2015 ranging from 6.14 on January 1, 2015 to 6.20 on March 31, 2015, CNY to the USD.

Revenue Recognition.  Revenue from consulting and management services is recognized according to the terms of the consulting and management services agreements.  Generally, consulting and management services revenue will be recognized over the term of the agreement.  Consulting Revenue recognized to date consists of pre-production research and strategizing, introduction of American talents and potential partners, training and global market consulting, especially regarding distribution and production in the United States.  Revenue is not related to final film production or licensing and therefore is not subject to FASB ASC 926 – Films revenue recognition guidance.

Share-based Compensation.  The Company may issue stock options whereby all share-based payments to employees, including grants of employee stock options are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period). The Company had no common stock options or common stock equivalents granted or outstanding for all periods presented.

 

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The Company accounts for stock-based instruments issued to employees in accordance with ASC Topic 718.  ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees.  The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method.  The Company accounts for non-employee share-based awards in accordance with the measurement and recognition provisions ASC Topic 505-50.  The Company estimates the fair value of stock options at the grant date by using the Black-Scholes option-pricing model.

The Company may issue restricted stock for various business and administrative services. Cost for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached; or (ii) the date at which the counterparty's performance is complete. There was no share-based compensation paid in the quarter ended March 31, 2015.

Income Taxes.  The Company accounts for income taxes pursuant to the provisions of ASC 740-10, "Accounting for Income Taxes," which requires, among other things, an asset and liability approach to calculating deferred income taxes.  The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets and liabilities.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Earnings per Share.  In accordance with ASC 260-10, "Earnings Per Share", basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period.  Diluted earnings (loss) per share calculations are determined by dividing net income (loss) by the weighted average number of shares plus the effect of the dilutive potential common shares outstanding during the period using the treasury stock method.

Diluted income per share includes the dilutive effects of stock options, warrants, and stock equivalents.  To the extent stock options, stock equivalents and warrants are anti-dilutive; they are excluded from the calculation of diluted income per share.

Recent Accounting Pronouncements.  The Company reviews new accounting standards as issued. No new standards had any material effect on these consolidated financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these financial statements as presented.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of March 31, 2015, current assets exceeded current liabilities by $970,271. Total assets decreased from $1,332,397 at December 31, 2014 to $1,305,118 at March 31, 2015, and total liabilities decreased from $342,105 at December 31, 2014 to $334,847 at March 31, 2015.

We had consulting revenue of $0 and a net loss of ($17,106) for the three month period ended March 31, 2015 as compared to revenue of $822,500 and a net income of $460,252 for the three month period ended March 31, 2014. These factors raise substantial doubt about our ability to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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NOTE 4.                          RELATED PARTY TRANSACTIONS

On December 23, 2013, the Company and AF Ocean Investment Management (Shanghai) Ltd., entered into a management agreement for the collection and maintenance of all funds received in the People's Republic of China on behalf of the Company. All deposits received in China incur a management fee of ten percent (10%) due to AF Ocean. During the three month period ended March 31, 2015, no payments have been received for this management service. As of March 31, 2015, the current balance in AF Ocean Shanghai's account held on behalf of the Company is $464,073.

Commencing on June 1, 2014, the Company entered into a one year agreement with AF Ocean Investment Management Company (the "Service Provider") to provide management services to the Company. Both the Service Provider and the Company share the same Chief Executive Officer and controlling shareholder.

The Company pays the Service Provider $6,350 per month for management and accounting related services including, without limitation, preparing periodic and other reports required to be filed under the Securities Exchange Act of 1934, preparing financial reports, bookkeeping, managing the website, handling previous employee matters, and related governmental filings, and processing payables (collectively, the "Services"). The Company shall use the Services of the Service Provider and the Service Provider shall make itself available for the performance of the Services upon reasonable notice. The Service Provider, as applicable, shall perform the Services at the times and places reasonably requested by the Company's Board of Directors to meet the needs and requirements of the Company, taking into account other engagements that the Service Provider may have.

As of March 31, 2015, payments totaling $19,050 have been made to the Service Provider for these management services.

December 2, 2014 the majority shareholder Andy Fan was loaned $325,600 at an interest rate payable of 3.43%. As of February 25, 2015 the entire loan has been repaid in its entirety into the Wells Fargo bank account.

As of March 16, 2015, a short term loan was made to Andy Fan for $479,000 paid out of the funds held in Shanghai. This was a non interest payable loan made to Andy Fan that was paid back on April 27, 2015 in its entirety by depositing into the Company's operating account.

February 27, 2015 Andy Fan advanced the Company $180,000.

The Company's tax expense differs from the "expected" tax expense for Federal income tax purposes (computed by applying the United States Federal tax rate of 34% and State tax rate of 3.3% to income before taxes). The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets and liabilities.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

We had a net loss before income taxes of ($27,283) for the three month period ended March 31, 2015.

 A tax valuation adjustment was made in the amount of $10,177. Therefore, we have accrued an estimated tax liability in the amount of $329,261 at an effective tax rate of 37.3%.  All net operating carry forwards have been utilized.

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Common Stock

The total authorized capital stock of the corporation is five billion 5,000,000,000 shares.

The Company is authorized to issue five billion (5,000,000,000) shares of common stock, and one class of preferred blank check to be issued solely at the discretion of the Board.  No shares of capital stock have been designated as preferred stock.

As of March 31, 2015 the Company had 125,628,400 shares of common stock issued and outstanding.

The Company has no options or warrants issued or outstanding.

On December 23, 2013, the Company entered into a management agreement with AF Ocean Shanghai for the collection and maintenance of all funds received in the People's Republic of China on behalf of the Company. All deposits received in China incur a management fee of ten percent (10%) due and payable to AF Ocean Shanghai. As of March 31, 2015, the current balance in AF Ocean Shanghai's account held on behalf of the Company is $464,073.

Commencing on June 1, 2014, the Company entered into one year agreement with the Service Provider agreeing to pay $6,350 per month for management and accounting related services.

On April 27, 2015, the related party loan in the amount of $479,000 was repaid in its entirety.

Management has evaluated subsequent events through May 1, 2015, the date the financial statements were available to be issued. Management is not aware of any other significant events that occurred subsequent to the balance sheet date that would have a material effect on the financial statements thereby requiring adjustment or disclosure.

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The following discussion and analysis of financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this report. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. See "Cautionary Note Regarding Forward-Looking Statements." Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors discussed elsewhere in this report.

Overview

ChinAmerica Andy Movie Entertainment Media Co.("CAME" or the "Company")  was incorporated under the laws of the State of Florida on September 26, 2002. On October 11, 2012, the Company changed its operations to focus on movie, entertainment and media.

We are looking to establish a CAME presence in Hengdian, China which is deemed to be the "Hollywood of China," as well as Hollywood, California.  Our President, Mr. Fan, travels to various areas in China and the United States of America and has been working on securing the new locations.  Our Board of Directors believes that we can operate as a movie, entertainment and documentary company during the next 12 months increasing revenues of the Company.  However, the production of our documentaries or animated films may take years to complete and future cash flows, if any, are impossible to predict at this time.  The realization value from any production or animated film is largely dependent on factors beyond our control such as the market for our films.

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Results of Operations

 

The following table provides a comparison of a summary of our results for the three month period ended March 31, 2015 and 2014.

Loss from Operations. For the three month period ended March 31, 2015, total revenue was $0 as compared to $822,500 for the three month period ended March 31, 2014. Loss from operations was ($30,376) for the three month period ended March 31, 2015 as compared to $733,823 for the three month period ended March 31, 2014. The decrease in revenue is attributable to the lack of a contract.  The Company is in negotiations with Zhong Mei An Di Yin Shi Wen Hua Chuan Mei Ltd., Co regarding the new contracts.

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General and Administrative Expenses. General and administrative expenses increased by $4,899 to $11,326 for the three month period ended March 31, 2015 as compared to $6,427 for the three month period ended March 31, 2014.

General and Administrative Expenses – related party. The related party expenses decreased by $63,200 to $19,050 for the three month period ended March 31, 2015 as compared to $82,250 for the three month period ended March 31, 2014. The decrease in expenses is due to the lack of continued consulting revenue for the Company therefore when revenue is not brought in the 10% management fee is not charged by the Service Provider.

Liquidity and Capital Resources

General. As of March 31, 2015, we had cash and cash equivalents of $541,449 as compared to cash and cash equivalents of $1,002,549 of March 31, 2014. We have met our cash needs through our consulting revenue. Our cash requirements are generally for professional services and general and administrative activities. We do not believe that our cash balance and expected consulting fees are sufficient to finance our cash requirements for expected operational activities going forward, and therefore we will require additional funding through either loans or the sale of equity, or both.

Operating Activities. Our operating activities used cash of $350,047 for the three month period ended March 31, 2015 as compared to $732,545 for the three month period ended March 31, 2014.

Investing Activities. Our investing activities used cash of $0 for the three month period ended March 31, 2015 as compared to $0 for the three month period ended March 31, 2014.

Financing Activities. Our financing activities provided cash of $26,600 for the three month period ended March 31, 2015, as compared to $0 for the three month period ended March 31, 2014.

Cash Flow. The following table provides a summary of our cash flows for the three month period ended March 31, 2015, and 2014.

 

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Exhibit No.	Description
3.1	Amended and Restated Articles of Incorporation *
3.2	Articles of Amendment to Articles of Incorporation **
3.3	Articles of Amendment to Articles of Incorporation ***
3.4	Bylaws *
10.1	Management Agreement between AF Ocean Investment Management Company (Shanghai Ltd.) and ChinAmerica Andy Movie Entertainment Media Co., effective December 23, 2013 ***
10.2	Management Services Agreement between AF Ocean Investment Management Company and ChinAmerica Andy Movie Entertainment Media Co., effective as of June 1, 2014 ***
31	Certification of Principal Executive Officer and Principal Financial Officer filed pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Filed herewith
32	Certification of Chief Executive Officer and Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Furnished herewith
101	Financial statements of ChinAmerica Andy Movie Entertainment Media Co. for the fiscal quarter ended March 31, 2015, formatted in XBRL: (i) the Balance Sheets; (ii) the Statements of Operations and Comprehensive Income; (iii) the Statements of Cash Flows; and (v) the Notes to Financial Statements Filed herewith

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

		CHINAMERICA ANDY MOVIE ENTERTAINMENT MEDIA CO.
Dated: May 11, 2015	By:	/s/ Andy Fan
		Andy Z. Fan Chief Executive Officer
		(Principal Executive Officer)

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