NETWORK CN INC

CIK:0000934796|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
REVENUES
Advertising services	$ 80,773	$ 35,149	$ 504,364	$ 377,121
COST OF REVENUES
Cost of advertising services	(67,471)	(35,292)	(490,042)	(363,269)
GROSS LOSS/PROFIT	13,302	(143)	14,322	13,852
OPERATING EXPENSES
General and administrative	(114,805)	(209,161)	(393,811)	(668,203)
Amortization of intangible assets	(86,473)	(79,697)	(259,421)	(303,298)
Loss on written off of intangible assets				(449,473)
Total Operating Expenses	(201,278)	(288,858)	(653,232)	(1,420,974)
LOSS FROM OPERATIONS	(187,976)	(289,001)	(638,910)	(1,407,122)
OTHER INCOME
Interest income	4	3	16	21
Government grant		266	17	3,464
Gain on lease termination				11,373
Total Other Income	4	269	33	14,858
INTEREST AND OTHER DEBT-RELATED EXPENSES
Amortization of debt discount		(18,685)		(55,657)
Interest expense	(75,172)	(60,363)	(222,996)	(175,939)
Total Interest and Other Debt–Related Expenses	(75,172)	(79,048)	(222,996)	(231,596)
NET LOSS BEFORE INCOME TAXES	(263,144)	(367,780)	(861,873)	(1,623,860)
Income taxes
NET LOSS	(263,144)	(367,780)	(861,873)	(1,623,860)
OTHER COMPREHENSIVE INCOME/(LOSS)
Foreign currency translation gain/(loss)	(3,054)	323	18,528	8,404
Total Other Comprehensive Income	(3,054)	323	18,528	8,404
COMPREHENSIVE LOSS	$ (266,198)	$ (367,457)	$ (843,345)	$ (1,615,456)
NET LOSS PER COMMON SHARE - BASIC	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.07)
NET LOSS PER COMMON SHARE - DILUTED	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.07)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC	25,088,592	24,623,959	24,332,211	24,390,446
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED	25,088,592	24,623,959	24,332,211	24,390,446

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (861,873)	$ (1,623,860)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of equipment	876	1,029
Amortization expense of right-of-use assets	33,541	145,384
Amortization of intangible assets	259,421	303,298
Amortization of debt discount		55,657
Loss on written off intangible assets		449,473
Interest expenses	222,996	175,939
Changes in operating assets and liabilities:
Accounts receivables	145,544	41,169
Other assets	1,277	(9,193)
Prepaid expenses and other current assets, net	2,098	(1,994)
Operating lease liabilities	(7,362)	(193,241)
Accounts payable, accrued expenses and other payables	124,633	484,432
Net cash used in operating activities	(78,849)	(171,907)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term loans – related party	57,582	141,906
Net cash provided by financing activities	57,582	141,906
EFFECT OF EXCHANGE RATE CHANGES ON CASH	19,426	14,255
NET DECREASE IN CASH	(1,841)	(15,746)
CASH, BEGINNING OF PERIOD	5,334	20,351
CASH, END OF PERIOD	3,493	4,605
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Stock-based compensation for stock granted for intangible assets (Note 1)	$ 81,326	$ 1,136,258

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current Assets
Cash	$ 3,493	$ 5,334
Accounts receivables	31,127	176,671
Prepaid expenses and other current assets, net	3	2,101
Other Assets	729	2,006
Total Current Assets	35,352	186,112
Equipment, Net	179	1,055
Intangible Assets, Net	431,665	609,760
Right-of-use assets, Net	10,835	38,456
TOTAL ASSETS	478,031	835,383
Current Liabilities
Accounts payable, accrued expenses and other payables	1,080,598	1,102,679
Accrued expenses and other payables – related parties	2,873,933	2,504,223
Lease liabilities	3,949	6,825
1% convertible promissory note due 2025, net	645,000	645,000
Short term loans with a related party	1,501,368	1,443,785
Total Current Liabilities	6,104,848	5,702,512
Non-Current Liabilities
Non-current portion of lease liabilities	2,331
1% convertible promissory note due 2027, net	2,500,000	2,247,062
Total Non- Current Liabilities	2,502,331	2,247,062
TOTAL LIABILITIES	8,607,179	7,949,574
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.001 par value, 10,000,000 shares authorized None issued and outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized. Shares issued and outstanding: 25,088,592 and 22,487,859 as of September 30, 2024 and December 31, 2023, respectively	25,088	22,488
Additional paid-in capital	132,130,400	132,451,674
Accumulated deficit	(142,002,256)	(141,287,445)
Accumulated other comprehensive income	1,717,620	1,699,092
TOTAL STOCKHOLDERS’ DEFICIT	(8,129,148)	(7,114,191)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 478,031	$ 835,383