CRANK MEDIA: Discussion and analysis by management of the financial situation and operating results. (form 10-Q)

FORWARD-LOOKING STATEMENTS

This report on Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Reference is made in particular to the description of our plans and objectives for future operations, the assumptions underlying these plans and objectives, and other forward-looking statements included in this report. Such statements can be identified by the use of forward-looking terms such as “may”, “will”, “expect”, “believe”, “estimate”, “anticipate”, “intend”, “Continue” or similar terms, variations of these terms or the negative of these terms. These statements are based on management’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in forward-looking statements. These statements deal with future events and conditions relating to, among other things, capital expenditures, profits, litigation, regulatory matters, liquidity and capital resources, and accounting matters. Actual results in each case could differ materially from those anticipated in these statements due to factors such as future economic conditions, changes in consumer demand, legislative, regulatory and competitive developments in the markets in which we operate, results of litigation and other circumstances affecting expected revenues and costs, and risk factors set forth in the financial statements and related notes included in the company’s annual report on Form 10-K for the year ended December 31, 2020, which was filed on April 15, 2021.

As used in this Form 10-Q, “we”, “us” and “our” refer to Crank Media Inc., which is also sometimes referred to as the “Company”.

General Overview

We have been incorporated into Nevada to Feb. 26, 2013, and on April 4, 2016, amended the statutes to change the name of the company to Team 360 Sports Inc, to April 4, 2016, then to Crank Media Inc, to December 22, 2020.

The Company has its Nevada head office at 711 S. Carson Street, office 4,
Carson City, Nevada 89701. The Company’s main telephone number is 604-558-2515. Its main operations are carried out from its office in 1720 – 650 West Georgia Street, Vancouver, British Columbia, Canada V6B 4N8. The Company’s website on the Internet at www.crankmedia.ca.

The main business activities of the Company are related to (i) planning and development of production and distribution of musical recordings, with four different artists currently under contract, (ii) planning and development of production and film distribution, with two films currently in pre-production and two other film scripts nearing completion, and (iii) planning and development of television production and distribution, with two programs currently in pre-production, a program in the development phase of the rights to some of its episodes currently on the market, and a fourth program at a very preliminary stage of development. The Company is also trying to develop and build its virtual studio, and also intends to further develop its easy-to-use platform digital administration management systems for clubs, leagues and amateur sports teams.

TO March 31, 2021, the Company had minimal revenues as the activities described above are mainly in the planning and development stages. The end of the Company’s financial year is the 31st of December.

COVID-19

A new strain of coronavirus (COVID-19) has been identified for the first time in December 2019, and subsequently declared a global pandemic by the World Health Organization to
March 11, 2020. As a result of the outbreak, many businesses experienced disruptions in their operations and in the markets served. The main negative impact of COVID-19 on the Company’s operating results and financial condition as of March 31, 2021 a slowdown in the Company’s film and television production activities. The full extent of the future impacts of COVID-19 on the Company’s operating plan is uncertain. A prolonged outbreak could have a material adverse impact on the Company’s ability to pursue its business plan as and when expected.

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Results of Operations

The following discussion and analysis should be read in conjunction with the unaudited financial statements of the Company for the three months ended. March 31, 2021, and 2020, and accompanying accompanying notes which are included in this quarterly report.

For the three months ended March 31, 2021 and 2020

Our operating results for the three months ended March 31, 2021 and 2020, are as
follows:



                               Three Months Ended
                                    March 31,
                               2021          2020         Changes ($)
Revenues                     $     639     $     639     $           -
Operating expenses           $ 328,145     $ 136,874     $     191,271
Interest expense             $   8,790     $   6,384     $       2,406

Loss on debt settlement $ 142,150 $ – $ 142,150
Net loss

                     $ 478,446     $ 142,619     $     193,677

The revenues are linked to the license agreement dated November 1, 2016. One-time non-refundable fees and installation and training fees are recognized over the term of the agreement, which ends on December 1, 2021.

Operating Expenses

For the three months ended March 31, 2021, operating expenses were $ 274,000 for the remuneration expenses of related parties and $ 54,145 for general and administrative expenses.

For the three months ended March 31, 2020, operating expenses were $ 125,000 for the remuneration expenses of related parties and $ 11,874 for general and administrative expenses.

Other Expenses

For the three months ended March 31, 2021, and 2020, other expenses were $ 240
and $ 5,689 for interest on loans, respectively and $ 8,550 for the financial cost of the note payable and $ 695 for the amortization discount on the convertible note, respectively.

For three months ended March 31, 2021 and 2020, other expenses were $ 142,150 and
$ 0 for loss on debt settlement, respectively.

Liquidity and capital resources

The following table presents selected financial data on the Company as of
March 31, 2021 and December 31, 2020, respectively:

Working Capital



                               March 31,       December 31,
                                  2021             2020
Cash                           $        -     $          358

Current Assets                 $   24,928     $          358
Current Liabilities            $  257,849     $      492,597
Working Capital (Deficiency)   $ (257,849 )   $     (492,239 )




Cash Flows



                                                Three Months Ended
                                                     March 31,
                                                2021          2020         Changes ($)

Cash flow used in operating activities $ (358) $ (13,774) $ 13,416
Cash flow generated by financing activities $ – $ 13,774 $ (13,774)
Net change in cash during the period

              $   (358 )    $       -     $        (358 )





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From March 31, 2021, and December 31, 2020, our current assets were $ 24,928 and
$ 358, respectively, only in cash.

From March 31, 2021, our current liabilities and working capital decreased compared to December 31, 2020, mainly the settlement of liabilities relating to domain names.

From March 31, 2021, current liabilities mainly consist of $ 164,478 the promissory note to be paid, $ 12,450 due to a related party, $ 79,215 accounts payable and accrued liabilities and $ 1,706 deferred income.

From December 31, 2020, our current liabilities mainly consist of $ 350,000
on the liabilities side to be settled in stock, $ 90,240 convertible notes, $ 21,849 the loan to pay, $ 12,450 due to a related party, $ 14,713 to accounts payable and

Operating Activities

During the three months ended March 31, 2021, the net cash used in operating activities was $ 358, compared to $ 13,774 for the three months ended March 31, 2020.

Net cash used in operating activities for the three months ended March 31, 2021, was attributed to a net loss of $ 478,446, less a related party indemnity payable of $ 24,000 for executive salaries, loss of debt settlement $ 142,150, shares issued for debt to a related party of $ 250,000, of $ 7,928 and less a change in accounts payable and accrued liabilities of $ 54,027 and increased by a change in deferred revenue of $ 639.

Net cash used in operating activities for the three months ended March 31, 2020, was attributed to a net loss of $ 142,619, less a related party indemnity payable of $ 125,000, amortization of discount on convertible note of $ 695, less a change in accounts payable and accrued liabilities of $ 3,789 and increased by a deferred income of $ 639.

Investing Activities

The Company did not use any funds for investing activities during the three months ended March 31, 2021, and 2020.

Financing Activities

During the three months ended March 31, 2021, the net cash from financing activities was $ 0, compared to $ 13,774 for the three months ended March 31, 2020, loans.

Off-balance sheet provisions

From March 31, 2021, the Company had no material off-balance sheet arrangements

Critical accounting conventions and estimates

The preparation of financial statements and related information in accordance with we Generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and results of operations require management of the Company to make judgments, assumptions and estimates that affect the amounts reported. Management bases its estimates on historical experience and on various other assumptions that it considers reasonable in the circumstances, the results of which form the basis for making judgments on the carrying values ​​of assets and liabilities. Actual results may differ from these estimates, and these differences may be material.

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