WEB NEWS Comments & Business Outlook
W&E Source Corp. and Subsidiaries (Formerly News of China Inc.)
2016
2015
2016
2015
Three Months
Three Months
Nine Months
Nine Months
Net revenues
$
391
$
3,435
$
2,955
$
5,191
Operating expenses
General and administrative expenses
11,821
18,051
28,835
65,839
Loss from operation
(11,430
)
(14,616
)
(25,880
)
(60,648
)
Other Income (expense)
Interest income
-
-
-
-
Foreign currency exchange (loss) gain
6,761
(3,314
)
(2,369
)
(5,420
)
Total other income (expense)
$
6,761
$
(3,314
)
$
(2,369
)
$
(5,420
)
Loss before income taxes
$
(4,669
)
$
(17,930
)
$
(28,249
)
$
(66,068
)
Net loss
(4,669
)
(17,930
)
(28,249
)
(66,068
)
Other comprehensive income (loss)
Cumulative foreign currency
(3.958
)
3,516
2,450
6,408
Comprehensive loss
$
(8,627
)
$
(14,414
)
$
(25,799
)
$
(59,660
)
Weighted average number of shares
63,483,300
56,779,000
63,483,300
63,438,300
Loss per share – basic and diluted
(0.00
)
(0.00
)
(0.00
)
(0.00
)
Comments & Business Outlook
W&E Source Corp. and Subsidiaries (Formerly News of China Inc.)
September 30, 2015
September 30, 2014
Net revenues
$
616
$
857
Gross profit
616
857
Operating expenses
General and administrative expenses
9,716
20,879
Total operating expenses
9,716
20,879
Operating Loss
(9,100
)
(20,022
)
Other Income (expense)
Foreign currency exchange (loss) gain
(1,684
)
1,095
Total other income (expense)
$
(1,684
)
$
1,095
Net loss
(10,784
)
(18,927
)
Other comprehensive income (loss)
Cumulative foreign currency Translation adjustment
3,382
667
Comprehensive loss
$
(7,402
)
$
(18,260
)
Weighted average number of shares outstanding – basic and diluted
63,483,300
47,900,000
Loss per share – basic and diluted
(0.00
)
(0.00
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $616 from operations during the three months ended September 30, 2015 as compared to $857 for the same period in 2014, a decrease of $241 or 28%. The decrease was mainly due to the decrease in our travel business in the quarter ended September 30, 2015.
Net loss
We had net losses of $10,784 and $18,927 for the three months ended September 30, 2015 and 2014, respectively, a decrease of $8,143 or 43%, and had an accumulated deficit of $1,034,307 since the inception of our business as at September 30, 2015. The decrease in net loss is mainly attributable to a decrease of general and administrative expenses, as partially offset by a decrease in sales revenue.
Comments & Business Outlook
W Source Corp.
(Formerly News of China Inc.)
Consolidated Statements of Operations and Comprehensive Loss
For the Years Ended June 30, 2015 and 2014
(Audited)
June 30, 2015
June 30, 2014
Revenues $
7,374
$
22,454
Cost of revenues
(3,031
)
(3,363
)
Gross profit
4,343
19,091
Operating expenses
General and administrative expenses
81,928
198,313
Total operating expenses
81,928
198,313
Operating Loss
(77,585
)
(179,222
)
Other income (expense)
Other income
-
3,204
Interest income
-
20
Interest expense
-
(2
)
Foreign currency exchange (loss) gain
(3,556
)
-
Total other income (expense)
(3,556
)
3,222
Net loss
(81,141
)
(176,000
)
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment
4,766
(660
)
Comprehensive loss
$
(76,375
)
$
(176,660
)
Weighted average number of shares outstanding - basic and diluted
58,443,846
47,900,000
Loss per share - basic and diluted
$
(0.00
)
$
(0.00
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $7,374 from our operations during the year ended June 30, 2015 as compared to the year ended June 30, 2014 where we generated total revenues of $22,454 or a decrease of 67%. The decrease was due to increased competition in the tourism market which resulted in a decrease in sales.
We had net losses of $81,141 and $176,000 for the years ended June 30, 2015 and 2014, respectively, and had an accumulated deficit of $1,023,523 since the inception of our business.
Comments & Business Outlook
W&E Source Corp. and Subsidiaries (Formerly News of China Inc.)
2015
2014
2015
2014
Three Months
Three Months
Nine Months
Nine Months
Net revenues
$
3,435
$
920
$
5,191
$
15,155
Operating expenses
General and administrative expenses
18,051
28,147
65,839
160,022
Loss from operation
(14,616
)
(27,227
)
(60,648
)
(144,867
)
Other Income (expense)
Interest income
-
20
-
20
Foreign currency exchange (loss) gain
(3,314
)
(3
)
(5,420
)
(524
)
Total other income (expense)
$
(3,314
)
$
17
$
(5,420
)
$
(504
)
Loss before income taxes
$
(17,930
)
$
(27,210
)
$
(66,068
)
$
(145,371
)
Income tax expenses
-
(568
)
-
(568
)
Net loss
(17,930
)
(27,778
)
(66,068
)
(145,939
)
Other comprehensive income (loss)
Cumulative foreign currency
Translation adjustment
3,516
(3,360
)
6,408
(2,097
)
Comprehensive loss
$
(14,414
)
$
(31,138
)
$
(59,660
)
$
(148,036
)
Weighted average number of shares outstanding – basic and diluted
56,779,000
47,900,000
63,438,300
47,900,000
Loss per share – basic and diluted
(0.00
)
(0.00
)
(0.00
)
(0.00
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $5,191 from our operations during for the nine months ended March 31, 2015 compared to $15,155 from the same period a year ago, a decrease of $9,964 or 192%. The decrease was attributed to the slow down of our travel business and as a result we made fewer sales.
Net loss
We had net losses of $66,068, and $145,939 for the nine months ended March 31, 2015 and 2014, respectively, a decrease of $79,871 or 155% and had an accumulated deficit of $1,008,450 since the inception of our business. The decrease in net loss is mainly attributed to sales revenue and general and administrative expenses decrease discussed above.
Comments & Business Outlook
W&E Source Corp. and Subsidiaries (Formerly News of China Inc.)
2014
2013
2014
2013
Three Months
Three Months
Six Months
Six Months
Net revenues
$
899
$
4,812
$
1,756
$
14,235
Operating expenses
General and administrative expenses
26,909
70,433
47,788
131,875
Loss from operation
(26,010
)
(65,621
)
(46,032
)
(117,640
)
Other Income (expense)
Interest income
-
-
-
-
Foreign currency exchange (loss) gain
(3,201
)
(38
)
(2,106
)
(521
)
Total other income (expense)
$
(3,201
)
$
(38
)
$
(2,106
)
$
(521
)
Loss before income taxes
$
(29,211
)
(65,659
)
$
(48,138
)
$
(118,161
)
Net loss
(29,211
)
(65,659
)
(48,138
)
(118,161
)
Other comprehensive income (loss)
Cumulative foreign currency
Translation adjustment
2,226
1,238
2,893
1,263
Comprehensive loss
$
(26,985
)
$
(64,421
)
$
(45,245
)
$
(116,897
)
Weighted average number of shares
59,169,536
47,900,000
53,504,000
47,900,000
Loss per share – basic and diluted
(0.00
)
(0.00
)
(0.00
)
(0.00
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $1,756 from our operations during for the six months ended December 31, 2014 compared to $14,235 from the same period a year ago, a decrease of $12,479 or 88%. The decrease was attributed to the slow down of our travel business and as a result we made fewer sales.
We had net losses of $48,138 and $118,161 for the six months ended December 31, 2014 and 2013, respectively, a decrease of $70,023 or 59% and had an accumulated deficit of $961,309 since the inception of our business. The decrease in net loss is mainly attributed to general and administrative expenses decrease discussed above.
Comments & Business Outlook
W&E Source Corp. and Subsidiaries (Formerly News of China Inc.)
September 30, 2014
September 30, 2013
Revenues $
857
$
9,423
Gross profit
857
9,423
Operating expenses
General and administrative expenses
20,879
61,442
Total operating expenses
20,879
61,442
Operating Loss
(20,022
)
(52,019
)
Other income (expense)
Foreign currency exchange gain (loss)
1,095
(483
)
Total other income (expense)
1,095
(52,502
)
Net loss
(18,927
)
(52.502
)
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment
667
25
Comprehensive loss
$
(18,260
)
$
(52,477
)
Weighted average number of shares outstanding - basic and diluted
47,900,000
47,900,000
Loss per share - basic and diluted
$
(0.00
)
$
(0.00
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $920 from our operations during for the three months ended September 30, 2014 compared to $9,423 from the same period a year ago, a decrease of $8,503 or 90%. The decrease was attributed to the off season of our travel business and as a result we made fewer sales.
Net loss
We had net losses of $18,927 and $52,502 for the three months ended September 30, 2014 and 2013, respectively, a decrease of $33,575 or 64% and had an accumulated deficit of $961,309 since the inception of our business. The decrease in net loss is mainly attributed to general and administrative expenses decrease discussed above.
Deal Flow
ITEM 10.1 Entry into a Material Definitive Agreement
On October 26, 2014, the Company entered into Loan Repayment Agreements (the “Agreements”) with four individuals who have extended loans to the Company with a total outstanding balance of $155,383 (the “Loan”). Pursuant to the Agreements the Company agreed to issue a total of 15,538,300 shares of its common stock, $0.0001 par value per share (the “Shares”) at the rate of $0.01 per share as full payment for the Loan. Upon issuance and delivery of the Shares, the Loan shall be fully paid and the Company shall no longer have any obligations to the individuals under the Loan.
ITEM 3.02 Unregistered Sales of Equity Securities
As described in Item 1.01 of this Report on Form 8-K, the Company will issue to the individual lenders a total of 15,538,300 shares of the Company’s common stock, $0.0001 par value per share, pursuant to the Agreements. These shares will not be registered under the Securities Act of 1933, as amended (the “Securities Act”). The issuance of these shares was made pursuant to Regulation S under the Securities Act.
Auditor trail
ITEM 4.01 Changes in Registrant's Certifying Accountant
Effective October 24, 2014, WWC, P.C. was dismissed as the Company’s independent registered public accounting firm. The dismissal of WWC, P.C. as the independent registered public accounting firm was approved by the Company’s Board of Directors.
The reports of WWC, P.C. regarding the Company’s financial statements for the fiscal year ended June 30, 2014 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit report of WWC, P.C. on the Company’s financial statements for fiscal year ended June 30, 2014 contained an explanatory paragraph which noted that there was substantial doubt about the Company’s ability to continue as a going concern.
During the year ended June 30, 2014, and during the period from June 30, 2014 to October 24, 2014, the date of dismissal, (i) there were no disagreements with WWC, P.C. on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of WWC, P.C. would have caused it to make reference to such disagreement in its reports; and (ii) there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.
The Company has provided WWC, P.C. with a copy of the foregoing disclosures and requested that WWC, P.C. furnish the Company with a letter addressed to the SEC stating whether or not it agrees with the above statements. WWC, P.C. has not responded and if and when WWC, P.C. responses and furnishes the Company with a letter addressed to the SEC stating whether or not it agrees with the above statement, the Company will furnish such letter by amendment.
Effective October 27, 2014, the Board of Directors of the Company engaged CANUSWA Accounting & Tax Services Inc. (“CANUSWA”) as its independent registered public accounting firm to audit the Company’s financial statements for the fiscal year ending June 30, 2015.
During each of the Company’s two most recent fiscal years and through the interim periods preceding the engagement of CANUSWA, the Company (a) has not engaged CANUSWA as either the principal accountant to audit the Company’s financial statements, or as an independent accountant to audit a significant subsidiary of the Company and on whom the principal accountant is expected to express reliance in its report; and (b) has not consulted with CANUSWA regarding (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and no written report or oral advice was provided to the Company by CANUSWA concluding there was an important factor to be considered by the Company in reaching a decision as to an accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement, as that term is defined in Item 304(a)(1)(iv) of Regulation S-K or a reportable event, as that term is described in Item 304(a)(1)(v) of Regulation S-K.
Comments & Business Outlook
W&E Source Corp. (Formerly News of China Inc.) Consolidated Statements of Operations and Comprehensive Loss For the Years Ended June 30, 2014 and 2013 (Audited)
June 30, 2014
June 30, 2013
Revenues $
22,454
$
24,201
Cost of revenues
(3,363
)
-
Gross profit
19,091
24,201
Operating expenses
General and administrative expenses
198,313
279,315
Total operating expenses
198,313
279,315
Operating Loss
(179,222
)
(255,114
)
Other income (expense)
Other income
3,204
-
Interest income
20
21
Interest expense
(2
)
-
Foreign currency exchange (loss) gain
-
(6,120
)
Total other income (expense)
3,222
(6,099
)
Net loss
(176,000
)
(261,213
)
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment
660
3,151
Comprehensive loss
$
(176,660
)
$
(258,062
)
Weighted average number of shares outstanding - basic and diluted
47,900,000
47,900,000
Loss per share - basic and diluted
$
(0.00
)
$
(0.01
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $22,454 from our operations during the year ended June 30, 2014 as compared to the year ended June 30, 2013 where we generated total revenues of $24,201 or a decrease of 7.2% . The decrease was due to increased competition of the tourism market -which resulted in a decrease in sales.
We had net losses of $176,000 and $261,213 for the years ended June 30, 2014 and 2013, respectively, and had an accumulated deficit of $942,382 since the inception of our business.
Comments & Business Outlook
W&E Source Corp. and Subsidiaries (Formerly News of China Inc.)
2013
2012
2013
2012
Three Month s
Three Months
Six Months
Six Months
Net revenues
$
4,812
$
4,584
$
14,235
$
11,669
Operating expenses
General and administrative expenses
70,433
88,719
131,875
152,047
Loss from operation
(65,621
)
(84,135
)
(117,640
)
(140,378
)
Other Income (expense)
Interest income
-
-
-
21
Foreign currency exchange (loss) gain
(38
)
-
(521
)
-
Total other income (expense)
$
(38
)
$
-
$
(521
)
$
21
Loss before income taxes
$
(65,659
)
$
(84,135
)
$
(118,161
)
$
(140,357
)
Net loss
(65,659
)
(84,135
)
(118,161
)
(140,357
)
Other comprehensive income (loss)
Cumulative foreign currency
Translation adjustment
1,238
(397
)
1,263
(1,340
)
Comprehensive loss
$
(64,421
)
$
(84,532
)
$
(116,897
)
$
(141,696
)
Weighted average number of shares outstanding – basic and diluted
47,900,000
47,900,000
47,900,000
47,900,000
Loss per share – basic and diluted
(0.00
)
(0.00
)
(0.00
)
(0.00
)
Management Discussion and Analysis
Revenues
We have generated total revenues of $4,812 from our operations during for the three months ended December 31, 2013 compared to $4,584 from the same period a year ago, an increase of $228 or 5%. The increase was attribute to the growth of business.
Net loss
We had net losses of $65,659 and $84,135 for the three months ended December 31, 2013 and 2012, respectively, a decrease of $18,476 or 22% and had an accumulated deficit of $884,543 since the inception of our business. The decrease in net loss is mainly attribute to general and administrative expenses decrease discussed above.
Reverse Merger Activity
On January 23, 2012, W&E Source Corp. f/k/a News of China, Inc., a Delaware corporation (the “Company”) entered into a
Stock Purchase Agreement (the “Stock Purchase Agreement”) with its CEO, Hong Ba, pursuant to which the Company has agreed to issue and sell to Ms. Ba, and Ms. Ba has agreed to purchase from the Company, up to 22,000,000 shares of the Company’s common stock for an aggregate purchase price of RMB 4,000,000 (approximately US$630,000).
Notable Share Transactions
Pursuant to the terms of an affiliate stock purchase agreement dated June 15, 2011, 2011 between Chenling Shi, Aventech Capital Inc. (held indirectly by Chenxi Shi) and Junjun Wu, Mr. Wu purchased a total of 15,000,000 shares of common stock from the following persons:
Chenling Shi 5,500,000
The purchase price of the shares was $250,000, which was paid in cash and by the personal funds of Mr. Wu.
Junjun Wu now owns 15,000,000 of our shares of common stock, which is 57.9% of our issued and outstanding shares of June 22, 2011.
Investor Alert
Caveat Emptor:
In our management’s opinion, we have not been able to achieve the milestones we set to fully implement our business operations. Because we have not been able to generate revenues from our online financial media outlet and we have little working capital remained, our management has decided to suspend the implementation of our current business plan until such time when we are able to obtain further financing. We anticipate that we will need to raise $2-2.5 million additional financing through sales of our securities in traditional private placement offerings or other types of private placement transactions such as Private Investment in Public Equity (“PIPE”) before we can continue implementing our current business plan. Alternatively, we may decide to pursue a new business in a different direction other than our current business plan.
Source: SEC Form 10Q ( For the quarterly period ended December 31, 2008)
