2014 Q4 Form 10-Q Financial Statement

#000121465914007859 Filed on November 19, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q4
Revenue $20.00K $204.2K $180.0K
YoY Change -88.89% 35.15% -66.67%
Cost Of Revenue $0.00 $160.0K $420.0K
YoY Change -100.0% -27.27% -14.29%
Gross Profit $20.00K $42.77K -$240.0K
YoY Change -108.33% -165.91% -580.0%
Gross Profit Margin 100.0% 20.94% -133.33%
Selling, General & Admin $10.00K $222.2K $330.0K
YoY Change -96.97% -20.77% -59.76%
% of Gross Profit 50.0% 519.65%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $10.00K $10.00K $10.00K
YoY Change 0.0% -50.0% -85.71%
% of Gross Profit 50.0% 23.38%
Operating Expenses $10.00K $228.5K $330.0K
YoY Change -96.97% -18.52% -57.69%
Operating Profit $10.00K -$185.8K -$570.0K
YoY Change -101.75% -46.21% -21.92%
Interest Expense -$100.0K $88.79K -$660.0K
YoY Change -84.85% 35.4% 88.57%
% of Operating Profit -1000.0%
Other Income/Expense, Net $0.00 $1.732K $10.00K
YoY Change -100.0% -82.01%
Pretax Income -$90.00K -$272.8K -$1.220M
YoY Change -92.62% -69.63% 12.96%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$90.00K -$272.8K -$1.220M
YoY Change -92.62% -69.63% 12.96%
Net Earnings / Revenue -450.0% -133.58% -677.78%
Basic Earnings Per Share
Diluted Earnings Per Share -$11.64K -$34.93K -$172.6K
COMMON SHARES
Basic Shares Outstanding 115.9M shares 115.9M shares 106.4M shares
Diluted Shares Outstanding 7.728M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $20.00K $120.0K $110.0K
YoY Change -81.82% 300.0% 450.0%
Cash & Equivalents $22.65K $118.6K $111.9K
Short-Term Investments
Other Short-Term Assets $150.0K $150.0K $330.0K
YoY Change -54.55% -55.88% -56.0%
Inventory
Prepaid Expenses $103.7K $105.2K $102.7K
Receivables $11.93K $10.00K $760.0K
Other Receivables $0.00 $0.00 $1.530M
Total Short-Term Assets $186.1K $277.9K $1.205M
YoY Change -84.56% -70.99% -18.75%
LONG-TERM ASSETS
Property, Plant & Equipment $38.53K $51.20K $83.16K
YoY Change -53.67% -44.49% -67.53%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $38.53K $51.20K $83.16K
YoY Change -53.67% -44.49% -67.53%
TOTAL ASSETS
Total Short-Term Assets $186.1K $277.9K $1.205M
Total Long-Term Assets $38.53K $51.20K $83.16K
Total Assets $224.7K $329.1K $1.288M
YoY Change -82.56% -68.67% -25.94%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $525.8K $523.4K $1.222M
YoY Change -56.97% -30.79% 64.17%
Accrued Expenses $3.090M
YoY Change 44.39%
Deferred Revenue
YoY Change
Short-Term Debt $2.094M $1.846M $1.536M
YoY Change 36.29% 35.96% 107.14%
Long-Term Debt Due $10.00K $10.00K $4.080M
YoY Change -99.75% -99.71% 40700.0%
Total Short-Term Liabilities $4.536M $4.528M $8.916M
YoY Change -49.12% -39.8% 152.63%
LONG-TERM LIABILITIES
Long-Term Debt $5.020M $5.020M $30.00K
YoY Change 16633.33% 16633.33% -98.66%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $5.018M $5.021M $29.75K
YoY Change 16767.03% 15281.18% -98.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.536M $4.528M $8.916M
Total Long-Term Liabilities $5.018M $5.021M $29.75K
Total Liabilities $9.554M $9.548M $8.945M
YoY Change 6.8% 26.41% 54.98%
SHAREHOLDERS EQUITY
Retained Earnings -$134.3M -$131.8M
YoY Change 1.89% 3.04%
Common Stock $7.719K $115.9K $106.4K
YoY Change -92.75% 9.96% 2.72%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$9.329M -$9.219M -$7.657M
YoY Change
Total Liabilities & Shareholders Equity $224.7K $329.1K $1.288M
YoY Change -82.56% -68.67% -25.94%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q4
OPERATING ACTIVITIES
Net Income -$90.00K -$272.8K -$1.220M
YoY Change -92.62% -69.63% 12.96%
Depreciation, Depletion And Amortization $10.00K $10.00K $10.00K
YoY Change 0.0% -50.0% -85.71%
Cash From Operating Activities -$340.0K -$100.0K -$50.00K
YoY Change 580.0% -72.97% -80.0%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $30.00K $0.00
YoY Change
Cash From Investing Activities $0.00 $30.00K $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 240.0K 180.0K 160.0K
YoY Change 50.0% -41.94% -27.27%
NET CHANGE
Cash From Operating Activities -340.0K -100.0K -50.00K
Cash From Investing Activities 0.000 30.00K 0.000
Cash From Financing Activities 240.0K 180.0K 160.0K
Net Change In Cash -100.0K 110.0K 110.0K
YoY Change -190.91% -283.33% -466.67%
FREE CASH FLOW
Cash From Operating Activities -$340.0K -$100.0K -$50.00K
Capital Expenditures $0.00 $0.00 $0.00
Free Cash Flow -$340.0K -$100.0K -$50.00K
YoY Change 580.0% -72.97% -80.0%

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us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
32987 USD
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
95584 USD
CY2014Q1 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
0.1
CY2014Q3 nwcn Amortization Of Prepayments For Advertising Operating Rights
AmortizationOfPrepaymentsForAdvertisingOperatingRights
USD
CY2013Q3 nwcn Amortization Of Prepayments For Advertising Operating Rights
AmortizationOfPrepaymentsForAdvertisingOperatingRights
160489 USD
nwcn Amortization Of Prepayments For Advertising Operating Rights
AmortizationOfPrepaymentsForAdvertisingOperatingRights
USD
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" font-style: italic; display: inline; font-family : Times New Roman; font-size: 10pt;">&#160;<font style=" display: inline; font-weight: bold;">(S) Concentration of Credit Risk</font></font></div> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">&#160;</font></div> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">The Company places its cash with various financial institutions. The Company believes that no significant credit risk exists as these cash investments are made with high-credit-quality financial institutions.</font></div> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">&#160;</font></div> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">All the revenue of the Company and a significant portion of the Company's assets are generated and located in China. The Company's business activities and accounts receivable are mainly from advertising services. Deposits are usually collected from customers in advance and the Company performs ongoing credit evaluation of its customers. The Company believes that no significant credit risk exists as credit loss.</font></div> <div style=" text-indent: 0pt; display: block;">&#160;</div> <div style=" text-indent: 0pt; margin-left: 0pt; margin-right: 0pt;"> <div> <div align="center" style=" width: 100%;"></div> </div> </div> <div style=" text-indent: 0pt; display: block;"><br/> </div> <div style=" text-indent: 0pt; display: block;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">The Company is engaged in the provision of out-of-home advertising in China. As of September 30, 2014 and December 31, 2013, one customer accounted for approximately <font>76</font>% and <font>96</font>% of its accounts receivable balances, respectively. Due to the longstanding nature of its relationships with this customer and contractual obligations, the Company is confident that it will recover these amounts. The Company establishes an allowance for doubtful debts accounts upon its assessment of various factors. The Company considers historical experience, the age of the receivable balances, the credit quality of its customers, current economic conditions, and other factors that may affect customers' ability to pay to determine the level of allowance required.</font></div> </div>
nwcn Amortization Of Prepayments For Advertising Operating Rights
AmortizationOfPrepaymentsForAdvertisingOperatingRights
726015 USD
CY2014Q3 nwcn Prepayments For Advertising Operating Rights Gross
PrepaymentsForAdvertisingOperatingRightsGross
USD
CY2013Q4 nwcn Prepayments For Advertising Operating Rights Gross
PrepaymentsForAdvertisingOperatingRightsGross
648082 USD
us-gaap Use Of Estimates
UseOfEstimates
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" font-style: italic; display: inline; font-family : Times New Roman; font-size: 10pt; font-weight: bold;">(C) Use of Estimates</font></div> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">&#160;</font></div> <div align="justify" style=" text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style=" display: inline; font-family : Times New Roman; font-size: 10pt;">In preparing unaudited condensed consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Differences from those estimates are reported in the period they become known and are disclosed to the extent they are material to the unaudited condensed consolidated financial statements taken as a whole.</font></div> </div>
CY2014Q3 us-gaap Security Deposit
SecurityDeposit
45402 USD
CY2014Q3 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
19690 USD
CY2013Q4 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
773611 USD
CY2014Q3 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
13526 USD
CY2013Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
13634 USD
CY2014Q3 nwcn Prepaid And Other Current Assets Gross
PrepaidAndOtherCurrentAssetsGross
1716363 USD
CY2013Q4 nwcn Prepaid And Other Current Assets Gross
PrepaidAndOtherCurrentAssetsGross
1859999 USD
CY2014Q3 nwcn Allowancefor Doubtful Other Debts Current
AllowanceforDoubtfulOtherDebtsCurrent
1563242 USD
CY2013Q4 nwcn Allowancefor Doubtful Other Debts Current
AllowanceforDoubtfulOtherDebtsCurrent
1526639 USD
CY2014Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
105196 USD
CY2013Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
102665 USD
CY2014Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
12602 USD
us-gaap Interest Expense Short Term Borrowings
InterestExpenseShortTermBorrowings
218295 USD
us-gaap Interest Expense Short Term Borrowings
InterestExpenseShortTermBorrowings
128192 USD
CY2013Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
1536440 USD
CY2014Q3 us-gaap Customer Advances And Deposits Current
CustomerAdvancesAndDepositsCurrent
17334 USD
CY2013Q4 us-gaap Customer Advances And Deposits Current
CustomerAdvancesAndDepositsCurrent
117829 USD
CY2014Q3 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
177614 USD
CY2013Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
109559 USD
CY2014Q3 us-gaap Due To Officers Or Stockholders Current
DueToOfficersOrStockholdersCurrent
USD
CY2013Q4 us-gaap Due To Officers Or Stockholders Current
DueToOfficersOrStockholdersCurrent
85244 USD
CY2014Q3 us-gaap Interest Payable Current
InterestPayableCurrent
407210 USD
CY2013Q4 us-gaap Interest Payable Current
InterestPayableCurrent
345917 USD
CY2014Q3 us-gaap Accounts Payable Other Current
AccountsPayableOtherCurrent
35893 USD
CY2013Q4 us-gaap Accounts Payable Other Current
AccountsPayableOtherCurrent
9088 USD
CY2014Q3 us-gaap Interest Expense Short Term Borrowings
InterestExpenseShortTermBorrowings
75562 USD
CY2014Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
298769 USD
CY2013Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
381187 USD
CY2014Q3 us-gaap Short Term Borrowings
ShortTermBorrowings
1846293 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Due In Two Years
CapitalLeasesFutureMinimumPaymentsDueInTwoYears
13846 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Due In Three Years
CapitalLeasesFutureMinimumPaymentsDueInThreeYears
13846 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Due In Four Years
CapitalLeasesFutureMinimumPaymentsDueInFourYears
4615 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Due
CapitalLeasesFutureMinimumPaymentsDue
35769 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Interest Included In Payments
CapitalLeasesFutureMinimumPaymentsInterestIncludedInPayments
3127 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Present Value Of Net Minimum Payments
CapitalLeasesFutureMinimumPaymentsPresentValueOfNetMinimumPayments
32642 USD
CY2014Q3 us-gaap Capital Leases Future Minimum Payments Due Current
CapitalLeasesFutureMinimumPaymentsDueCurrent
3462 USD
CY2014Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
USD
CY2013Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
496859 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
935588 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
1283522 USD
CY2014Q3 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
11339 USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
88555 USD
CY2014Q3 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
41797 USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Remainder Of Fiscal Year
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear
43198 USD
CY2014Q1 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
7500000 shares
CY2013Q3 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
47737 USD
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
124650 USD
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
144453 USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
43198 USD
CY2014Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
34018 USD
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
64567676 shares
CY2014Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2483389 shares
CY2013Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
65299908 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1819290 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
104970840 shares
CY2013Q3 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
shares
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
115919467 shares
CY2013Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
105419467 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
114730968 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
104970840 shares
CY2014Q3 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
shares
CY2013Q3 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
shares
us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
shares
us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
shares
CY2014Q3 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
115919467 shares
CY2013Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
105419467 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
114730968 shares
dei Entity Registrant Name
EntityRegistrantName
NETWORK CN INC
dei Entity Central Index Key
EntityCentralIndexKey
0000934796
dei Document Type
DocumentType
10-Q
dei Document Period End Date
DocumentPeriodEndDate
2014-09-30
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3

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