Light Media: Q2 2022 Notes

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Exhibit A

Notes to the financial statements for the quarterly period ending June 30, 2022

This summary of significant accounting policies of Light Media Holdings, Inc. is presented to assist in understanding the Company’s financial statements. These accounting policies are consistently consistent with generally accepted accounting principles.

  1. Basis of accounting: These financial statements have been prepared in accordance with generally accepted accounting principles.
  2. Dividends: The Company has not adopted a dividend payment policy. In lieu of dividends, the Company repurchased over 400,000 common shares and reaffirmed its stock buy-back plan for 2021-2022.
  3. Cash and cash equivalents: All highly liquid investments with original maturities of three months or less from the date of acquisition are considered cash equivalents. These investments mainly consist of money market funds and commercial paper. The Company continues to seek opportunities to minimize costs and maximize revenues through sales initiatives to improve its cash position. The company is also looking to raise additional capital for operations and acquisitions.
  4. Revenues: The Company’s revenues are derived from media sales through distributors. The Company recognizes revenue on cash receipts when earned. Prior to Covid-19, the Company has experienced rapid sales growth, but sales growth has been limited post-Covid-19 and the Company expects revenue to increase in 2022, depending on the containment of the Omnicron variant of Cov-19, as well as pressing inflationary pressures on consumers, potentially impacting purchasing power and advertising revenues. The company was, however, selected by a Fortune 100 automaker as a strategic local marketing resource.
  5. Accounts Receivable: The company recognizes revenue as it is earned. Due to the nature of the business, distributors maintain a reserve of funds to offset distribution costs. The net of these funds is returned to the company. Reserves are kept to compensate for expenses which are recognized as expenses for the company in the period incurred.
  6. Credit risk: Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash accounts at financial institutions, which may at times exceed the federal deposit insurance coverage limit. The company has no credit risk.
  7. Tangible capital assets: Tangible capital assets are recorded at cost less accumulated amortization. Depreciation calculated using straight-line method over the estimated useful life of the assets. When assets are retired or otherwise disposed of, the cost and related depreciation are removed and any gain or loss is reflected in operating results. Maintenance and repair expenses are charged to earnings as incurred.
  8. Equity: In accordance with SFAS 123, the issuance of shares in payment for services has been accounted for as an increase in equity and a current year expense.
  9. General and administrative expenses: General and administrative expenses mainly include occupancy costs, professional fees, office expenses, travel and advertising. As a result of this offering, we will incur additional general and administrative costs associated with operating as a public company, such as increased legal and accounting fees, personnel and benefits costs, and corporate relationship costs. Investors. TThe company continues to manage its overheads prudently and will continue to maintain cost discipline during and beyond the Covid-19 recovery period. The increase in spending is centered on the negative impact of Cov-19 on operations, as well as inflationary pressures that affect all businesses and consumers around the world.
  10. Income Taxes: Under the Tax Reformed Act of 1986, the benefits of net operating loss carryforwards may be impaired or limited in certain circumstances. The company makes no provision for these benefits and reports only the actual tax expense in the income statement.
  11. Advertising costs: Advertising costs are expensed as incurred.

Disclaimer

Light Media Holdings Inc. published this content on August 14, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Aug 14, 2022 7:32:01 PM UTC.

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