WEB NEWS Acquisitions
Item 2.01 Completion of Acquisition or Disposition of Assets
Comments & Business Outlook
SINO PAYMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months
Ended March 31, 2016
Three Months Ended March 31, 2015
US$
US$
(unaudited)
(unaudited)
NET REVENUES
Service income
979,223
504,118
COST OF SERVICES
Cost of service income
(775,476)
(532,666)
GROSS PROFIT (LOSS)
203,747
(28,548)
OPERATING EXPENSES:
General and administrative expenses
(248,864)
(215,828)
Foreign exchange loss
(121)
(1,454)
LOSS FROM OPERATIONS
(45,238)
(245,830)
OTHER INCOME (EXPENSES):
Interest income
58
51
Interest expense
(9,889)
(3,201)
VAT refund
16,021
-
Management fee income
15,467
11,070
Others
3,063
180
Total other income (expenses), net
24,720
8,100
LOSS BEFORE PROVISION FOR INCOME TAXES
(20,518)
(237,730)
INCOME TAXES
-
-
NET LOSS
(20,518)
(237,730)
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment
1,610
(397)
COMPREHENSIVE INCOME
(18,908)
(238,127)
Net loss per share, basic and diluted
(0.00)
(0.01)
Weighted average number of shares outstanding
29,656,130
26,956,930
Auditor trail
Item 4.01. Changes in Registrant’s Certifying Accountant.
Comments & Business Outlook
SINO PAYMENTS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
2015
2014
US$
US$
NET REVENUES
Service income
3,737,171
3,588,387
COST OF SERVICES
Cost of service income
(3,257,810)
(2,291,742)
GROSS PROFIT
479,361
1,296,645
OPERATING EXPENSES:
General and administrative expenses
1,116,054
909,079
Foreign exchange loss
6,238
7,815
TOTAL OPERATING EXPENSES
(1,122,292)
(916,894)
(LOSS)/INCOME FROM OPERATIONS
(642,931)
379,751
OTHER INCOME (EXPENSES):
Interest income
189
171
Interest expense
(18,467)
(488)
Gain on forgiveness of accounts payable
-
35,971
VAT refund
-
40,443
Management fee income
103,972
131,821
Others
28,104
12,253
Total other income (expenses), net
113,798
220,171
(LOSS)/INCOME BEFORE PROVISION FOR INCOME TAXES
(529,133)
599,922
INCOME TAXES
(13,544)
(143,977)
NET (LOSS)/INCOME
(542,677)
455,945
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustment
(16,521)
(3,793)
COMPREHENSIVE (LOSS) / INCOME
(559,198)
452,152
Net (loss) /income per share, basic and diluted
(0.02)
0.02
Weighted average number of shares outstanding
28,716,956
26,569,067
Comments & Business Outlook
SINO PAYMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months
Nine Months
Ended September 30,
Ended September 30,
2015
2014
2015
2014
(unaudited)
(unaudited)
(unaudited)
(unaudited)
NET REVENUES
Service income
1,687,441
1,105,334
2,817,474
2,645,721
COST OF SERVICES
Cost of service income
(1,481,975)
(678,781)
(2,515,444)
(1,748,714)
GROSS PROFIT
205,466
426,553
302,030
897,007
OPERATING EXPENSES:
General and administrative expenses
(214,218)
(213,446)
(745,223)
(637,659)
Foreign exchange loss
-
(383)
(2,797)
(816)
INCOME (LOSS) FROM OPERATIONS
(8,752)
212,724
(445,990)
258,532
OTHER INCOME (EXPENSES):
Interest income
36
47
127
93
Interest expense
(3,499)
(2,687)
(7,801)
(3,229)
VAT refund
3,000
12,312
3,000
22,385
Management fee income
21,860
37,179
45,407
114,192
Others
(9)
436
1,410
8,407
Total other income (expenses), net
21,388
47,287
42,143
141,848
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES
12,636
260,011
(403,847)
400,380
INCOME TAXES
(14,782)
(2,245)
(14,782)
(2,245)
NET (LOSS) INCOME
(2,146)
257,766
(418,629)
398,135
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments
(7,772)
(1,222)
(8,176)
(3,376)
COMPREHENSIVE INCOME
(9,918)
256,544
(426,805)
394,759
Net (loss) income per share, basic and diluted
(0.00)
0.01
(0.01)
0.01
Weighted average number of shares outstanding
29,656,130
26,566,930
28,400,458
26,566,930
Management Discussion and Analysis
Net revenues. Net revenues were $1,687,441 for the three months ended September 30, 2015, as compared to $1,105,334 for the same period in 2014, an increase of $582,107 or 52.7%. This increase was primarily attributable to the increase in our revenue from 1) systems maintenance with revenue increasing from $1,087,850 for the three months ended September 30, 2014 to $1,614,423 for the three months ended September 30, 2015; and 2) systems development and integration with revenue increasing from $17,484 for the three months ended September 30, 2014 to $73,018 for the three months ended September 30, 2015.
Net (loss) income. As a result of the foregoing, we had a net loss of $2,146 for the three months ended September 30, 2015, compared to net income of $257,766 for the same period in 2014, as a result of the factors described above.
Auditor trail
Item 4.01 Change in Registrant’s Certifying Accountant
AWC has provided the Company with the required independent letter under Rule 3526 of Public Company Accounting Oversight Board rules.
SGA’s report on the financial statements for the transitional period of September 1, 2013 through December 31, 2013 and for the fiscal year ended August 31, 2013, contained no adverse opinion or disclaimer of opinion and was not qualified or modified as to audit scope or accounting, except that the report contained an explanatory paragraph stating that there was substantial doubt about the Company's ability to continue as a going concern.
Comments & Business Outlook
SINO PAYMENTS, INC.
Statements of Operations
(Expressed in US dollars)
(unaudited)
For the Three Months Ended November 30,
For the Three Months Ended November 30,
2013
2012
$
$
Revenue
–
–
Operating Expenses
General and administrative
25,744
8,278
Foreign exchange loss
105
–
Total Operating Expenses
25,849
8,278
Operating loss
(25,849)
(8,278)
Other Income (Expense)
Interest expense
(745)
(985)
Loss on settlement of accounts payable
(124,662)
–
Write-off of accounts payable
–
42,744
Net income (loss)
(151,256)
33,481
Net income (loss) per share, basic and diluted
(0.01)
0.00
Weighted average number of shares outstanding
13,808,688
12,000,030
Management Discussion and Analysis
During the three months ended November 30, 2013 and 2012, the Company did not record any revenues.
During the three months ended November 30, 2013, the Company incurred operating expenses of $25,849 compared to operating expenses of $8,278 during the three months ended November 30, 2012. The increase in operating expenses was attributed to an increase in general and administrative expenses relating to professional fees incurred for the Company’s SEC filings.
The Company incurred a net loss of $151,256 for the three months ended November 30, 2013 compared with net income of $33,481 during the three months ended November 30, 2012. In addition to operating expenses, the Company incurred a loss of $124,662 for settlement of outstanding accounts payable to the Company’s SEC lawyers as well as interest expense of $745 on outstanding related party loans. During the three months ended November 30, 2012, the Company recorded a write-off of accounts payable of $42,744 relating to professional services that were forgiven by the Company offset by interest expense of $985 for related party loans.
During the three months ended November 30, 2013, the Company recorded a loss per share of $0.01 compared to $nil for the three months ended November 30, 2012.
Comments & Business Outlook
SINO PAYMENTS, INC.
Statements of Operations
(Expressed in US dollars)
Year Ended August 31,
2013
Year Ended August 31,
2012
$
$
Revenue
–
–
Operating Expenses
General and administrative
99,341
54,953
Foreign exchange loss
3,081
481
Total Operating Expenses
102,422
55,434
Operating loss
(102,422)
(55,434)
Other Income (Expense)
Interest expense
(6,166)
(2,729)
Gain on settlement of accounts payable
44,773
–
Gain on settlement of note payable
4,565
–
Net loss
(59,250)
(58,163)
Net loss per share, basic and diluted
(0.00)
(0.00)
Weighted average number of shares outstanding
12,145,958
12,000,000
Management Discussion and Analysis
During the year ended August 31, 2013 and 2012, the Company did not record any revenues.
Operating expenses for the year ended August 31, 2013 was $102,422 compared with $55,434 for the year ended August 31, 2012. The increase in operating expenses was due to an increase in general and administrative expenses incurred with respect to the Company’s pending transition with TAP Investments Group Limited (“TIG”) which was closed on January 1, 2014.
Net loss for the year ended August 31, 2013 was $59,250 compared with $58,163 for the year ended August 31, 2012. In addition to operating losses, the Company incurred $6,166 of interest expense during the year ended August 31, 2013 compared to $2,729 of interest expense for the year ended August 31, 2012, and also recorded a gain on settlement of accounts payable of $44,773 and notes payable of $4,565. There were no settlements of outstanding obligations during the year ended August 31, 2012.
Comments & Business Outlook
SINO PAYMENTS, INC.
(A Development Stage Company)
Condensed Statements of Operations
(unaudited)
For the Three Months Ended May 31,
For the Nine Months Ended May 31,
Accumulated from June 26, 2007 (date of inception) to May 31,
2013
2012
2013
2012
2013
($)
($)
($)
($)
($)
Revenue
–
–
–
–
–
Operating Expenses
General and administrative
16,895
11,051
48,884
73,992
1,226,641
Foreign exchange loss (gain)
174
–
1,713
481
2,127
Loss on impairment of joint venture
–
–
–
–
10,000
Total Operating Expenses
17,069
11,051
50,597
74,473
1,238,768
Operating Loss
(17,069)
(11,051)
(50,597)
(74,473)
(1,238,768)
Other Income (Expense)
Interest expense
(997)
(768)
(2,956)
(1,793)
(9,338)
Loss on settlement of debt
–
–
–
–
(23,838)
Write-off of accounts payable
–
–
42,744
–
42,744
Total Other Income (Expense)
(997)
(768)
39,788
(76,266)
(1,229,200)
Net Loss
(0.00)
(11,819)
(10,809)
(76,266)
(1,229,200)
Net Loss per Share, Basic and Diluted
(0.00)
(0.00)
(0.00)
(0.00)
Weighted Average Number of Shares Outstanding
12,000,030
12,000,030
12,000,030
12,000,030
(unaudited)
For the Nine Months Ended May 31,
Accumulated from
June 26, 2007 (Date of Inception)
to May 31,
2013
2012
2013
($)
($)
($)
Operating Activities
Net loss for the year
(10,809)
(76,266)
(1,229,200)
Adjustments to reconcile net loss to net cash used In operating activities:
Accretion expense
–
–
3,600
Loss on settlement of debt
–
–
23,838
Loss on impairment of joint venture
–
–
10,000
Shares issued for services
–
–
637,995
Warrants issued for services
–
–
2,938
Write-off of accounts payable
(42,744)
(42,744)
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities
51,000
14,590
401,673
Line of credit – related party
–
–
27,175
Net cash used in operating activities
(2,553)
(61,676)
(164,725)
Financing Activities
Proceeds from issuance of common stock
–
–
85,130
Proceeds from convertible notes payable
–
–
7,200
Proceeds from promissory note payable
–
–
30,517
Proceeds from related parties, net
2,553
61,676
41,878
Net cash provided by financing activities
2,553
61,676
164,725
Decrease in cash
–
–
–
Cash, beginning of period
–
–
–
Cash, end of period
–
–
–
Supplemental disclosures:
Interest paid
–
–
–
Income taxes paid
–
–
–
Non-cash investing and financing activities:
Beneficial conversion expense of convertible notes
–
–
3,600
Shares issued for joint venture
–
–
10,000
Shares issued to settle notes payable
–
–
41,017
Management Discussion and Analysis
During the three and nine months ended May 31, 2013 and 2012, the Company did not record any revenues.
Net loss for the nine months ended May 31, 2013 was $10,809 compared with a net loss of $76,266 for the nine months ended May 31, 2012. In addition to operating losses, the Company recorded a gain of $42,744 for the write-off of accounts payable which were forgiven, offset by interest expense of $2,956 from outstanding loans payable. During the nine months ended May 31, 2012, the Company incurred interest expense of $1,793.
The Company recorded a net loss of $10,809 during the nine months ended May 31, 2013 and a net loss per share of $nil compared to a net loss of $76,266 and a net loss per share of $nil during the nine months ended May 31, 2012.
Comments & Business Outlook
SINO PAYMENTS, INC.
(A Development Stage Company)
Condensed Statements of Operations
(unaudited)
For the Three Months Ended
February 28,
2013
$
For the Three Months Ended
February 29,
2012
$
For the Six Months Ended
February 28,
2013
$
For the Six Months Ended
February 29,
2012
$
Accumulated from
June 26, 2007
(Date of Inception)
to February 28,
2013
$
Revenue
–
–
–
–
–
Operating Expenses
General and administrative
23,711
53,454
31,989
62,941
1,209,746
Foreign exchange loss (gain)
1,539
481
1,539
481
1,953
Loss on impairment of joint venture
–
–
–
–
10,000
Total Operating Expenses
25,250
53,935
33,528
63,422
1,221,699
Operating Loss
(25,250)
(53,935)
(33,528)
(63,422)
(1,221,699)
Other Income (Expense)
Interest expense
(974)
(729)
(1,959)
(1,025)
(8,341)
Loss on settlement of debt
–
–
–
–
(23,838)
Write-off of accounts payable
–
–
42,744
–
42,744
Total Other Income (Expense)
(974)
(729)
40,785
(1,025)
10,565
Net Income (Loss)
(26,224)
(54,664)
7,257
(64,447)
(1,211,134)
Net Loss per Share, Basic and Diluted
(0.00)
(0.00)
0.00
(0.00)
Weighted Average Number of Shares Outstanding
12,000,030
12,000,030
12,000,030
12,000,030
Management Discussion and Analysis
Operating Expenses and Net Loss
Operating expenses for the three months ended February 28, 2013 was $25,250 compared with $53,935 for the three months ended February 29, 2012. The decrease in operating expenditures was attributed to the fact that the Company had limited transactions and incurred less legal and professional fees compared to prior year.
Operating expenses for the six months ended February 28, 2013 was $33,528 compared with $63,422 for the six months ended February 29, 2012. The decrease in operating expenditures was attributed to the fact that the Company had limited transactions and incurred less legal and professional fees compared to prior year.
Net income for the six months ended February 28, 2013 was $7,257 compared with a net loss of $64,447 for the six months ended February 29, 2012. In addition to operating losses, the Company recorded a gain of $42,744 for the write-off of accounts payable which were forgiven, offset by interest expense of $1,959 from outstanding loans payable. During the six months ended February 29, 2012, the Company incurred interest expense of $1,025.
The Company recorded a net income of $7,257 during the six months ended February 28, 2013 and a net income per share of $nil compared to a net loss of $64,447 and a net loss per share of $nil during the six months ended February 29, 2012.
Deal Flow
February 3rd , 2011 (Hong Kong) –
Sino Payments, Inc. today announced that it has executed a
$100,000.00 line of c redit note from long term partner, TAP Group, for the Hong Kong joint venture company, TAP ePayment Services Limited. According to the Hong Kong company registrar, 51% of the newly formed JV Company shares have been transferred to Sino Payments, Inc. TAP Group has already committed
$20,000.00 USD of which
$5,000 USD was received last week.
Liquidity Requirements
We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have
substantial doubt that we will be able to continue as a going concern without further financing.
Liquidity Requirements
On June 4, 2010, Sino Payments, Inc., a Nevada corporation, (the "Company") entered into a Line of Credit Note (the "Note") with Moon Gate Limited. Under the terms of the Note, the Company may borrow, from time to time, up to the maximum principal amount of the Note, which is $150,000, for general working capital. The minimum advance under the Note is $1,000 and the interest rate of the Note is 8%. The Note contains customary events of default, including, among others, non-payment of principal and interest and in the event the Company is involved in certain insolvency proceedings. In the event of a default, all of the obligations of the Company under the Note may be declared immediately due and payable. The Note is unsecured and all borrowings plus interest are due on demand.
Comments & Business Outlook
Sino Payments' President and CEO Matthew Mecke stated , "In addition to expecting our first revenue and merchant processing to occur in Q2 this year, we are building up quite a large amount of anticipated volume for future business. Although it may seem like we have been dormant for the last 2 fiscal quarters, our activity will soon bear fruit and my expectation is that we will generate sufficient revenue to be operating positive on a monthly basis before the end of this year 2010. Our sales pipeline is larger than we had anticipated as recently as the end of last year and we hope to soon make announcements related to the completion of a search for a qualified Sales Executive to help us drive even stronger growth than the heavy sales prospect growth we are now experiencing. Regional Asian physical retailers continue to be a focus for Sino Payments, in addition to these, we see strong potential in services to groups based in Japan, Europe, and others in Greater China with regional operations."
