UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number: 333-150952

China Media Inc.

(Exact name of registrant as specified in its charter)

Nevada		46-0521269
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Room 10128, No. 269-5-1 Taibai South Road,

Yanta District, Xi'an City, Shaan'xi Province, China

710068

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (86) 298765-1114

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

[ ] Large accelerated filer Accelerated filer	[X] Non-accelerated filer
[X] Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

As of May 15, 2020, the registrant had 39,750,000 shares of common stock outstanding.

Table of Contents

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

The unaudited interim consolidated financial statements of China Media Inc. (the “Company”, “China Media”, “we”, “our”, “us”) follow. All currency references in this report are to U.S. dollars unless otherwise noted.

CHINA MEDIA INC.

MARCH 31, 2020

(UNAUDITED)

Financial Statement Index

Consolidated Balance Sheets as of March 31, 2020 (Unaudited) and June 30, 2019
Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended March 31, 2020 and 2019 (Unaudited) Consolidated Statements of Changes in Stockholders’ Deficit for the three and nine months ended March 31, 2020 and 2019 (Unaudited)
Consolidated Statements of Cash Flows for the nine months ended March 31, 2020 and 2019 (Unaudited)
Notes to the Consolidated Financial Statements (Unaudited)

CHINA MEDIA INC.

CONSOLIDATED BALANCE SHEETS

		MARCH 31, 2020	JUNE 30, 2019
		(Unaudited)
Assets
Current assets
	Cash and cash equivalents	$ 1,882	$ 2,603
	Other receivable, net of allowance of $114,444 and $118,145 at March 31, 2020 and June 30, 2019, respectively	3,238	3,780
	Other current assets	423	-
Total current assets		5,543	6,383

	Fixed assets, net	14,274	14,736
	Operating lease right-of-use asset – related party	48,404	-

Total non-current assets		62,678	14,736
Total assets		$ 68,221	$ 21,119

Liabilities and Stockholders' Deficit
Current liabilities
	Accounts payable	$ 14,179	$ 8,924
	Accrued liabilities and other payable	317,218	287,592
	Accrued liabilities – related party	42,613	73,270
	Operating lease liability, current – related party	59,406	-
	Due to related party	789,285	717,974
Total current liabilities		1,222,701	1,087,760

Operating lease liability, non-current – related party		31,540	-
Total non-current liabilities		31,540	-

Total liabilities		1,254,241	1,087,760

Stockholders' deficit
	Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at March 31, 2020 and June 30, 2019, respectively	$ 398	$ 398
	Additional paid-in capital	11,345,213	11,323,440
	Accumulated other comprehensive income	665,515	630,561
	Accumulated deficit	(13,197,146)	(13,021,040)
Total stockholders' deficit		(1,186,020)	(1,066,641)

Total liabilities and stockholders' deficit		$ 68,221	$ 21,119

The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)


	FOR THE NINE MONTHS ENDED MARCH 31,		FOR THE THREE MONTHS ENDED MARCH 31,
	2020	2019		2020	2019



Selling, general and administrative expenses	$ 154,287	$ 153,152		$ 35,846	$ 33,688
Impairment loss	-	732,944		-	3,943
Total operating expenses	154,287	886,096		35,846	37,631


Other expense
Interest expense	21,819	19,664		6,299	6,132
Net loss before income taxes	(176,106)	(905,760)		(42,145)	(43,763)
Income taxes	-	-		-	-
Net loss	$ (176,106)	$(905,760)		$ (42,145)	$ (43,763)


Comprehensive loss
Net loss	(176,106)	(905,760)		(42,145)	(43,763)
Foreign currency translation adjustment	34,954	(12,766)		20,552	(20,001)
Comprehensive loss	$ (141,152)	$ (918,526)		$ (21,593)	$ (63,764)


Net loss per common share - basic and diluted	$ (0.00)	$ (0.02)		$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding - basic and diluted	39,750,000	39,750,000		39,750,000	39,750,000


The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2020 (Unaudited)

	Common Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit
	Shares	Amount	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit

Balance, July 1, 2019	39,750,000	$ 398	$ 11,323,440	$ 630,561	$ (13,021,040)	$ (1,066,641)
Foreign currency translation adjustment	-	-	-	41,283	-	41,283
Imputed interest on related party loan	-	-	6,804	-	-	6,804
Net loss	-	-	-	-	(64,531)	(64,531)

Balance, September 30, 2019	39,750,000	$ 398	$ 11,330,244	$ 671,844	$ (13,085,571)	$ (1,083,085)

Foreign currency translation adjustment	-	-	-	(26,881)	-	(26,881)
Imputed interest on related party loan	-	-	8,670	-	-	8,670
Net loss	-	-	-	-	(69,430)	(69,430)

Balance, December 31, 2019	39,750,000	$ 398	$ 11,338,914	$ 644,963	$ (13,155,001)	$ (1,170,726)

Foreign currency translation adjustment	-	-	-	20,552	-	20,552
Imputed interest on related party loan	-	-	6,299	-	-	6,299
Net loss	-	-	-	-	(42,145)	(42,145)

Balance, March 31, 2020	39,750,000	$ 398	$ 11,345,213	$ 665,515	$ (13,197,146)	$ (1,186,020)

CHINA MEDIA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2019 (Unaudited)
	Common Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit
	Shares	Amount	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit

Balance, July 1, 2018	39,750,000	$ 398	$ 11,298,300	$ 619,693	$ (12,056,334)	$ (137,943)
Foreign currency translation adjustment	-	-	-	5,411	-	5,411
Imputed interest on related party loan	-	-	6,801	-	-	6,801
Net loss	-	-	-	-	(66,056)	(66,056)

Balance, September 30, 2018	39,750,000	$ 398	$ 11,305,101	$ 625,104	$ (12,122,390)	$ (191,787)

Foreign currency translation adjustment	-	-	-	1,824	-	1,824
Imputed interest on related party loan	-	-	6,683	-	-	6,683
Net loss	-	-	-	-	(795,941)	(795,941)

Balance, December 31, 2018	39,750,000	$ 398	$ 11,311,784	$ 626,928	$ (12,918,331)	$ (979,221)

Foreign currency translation adjustment	-	-	-	(20,001)	-	(20,001)
Imputed interest on related party loan	-	-	6,133	-	-	6,133
Net loss	-	-	-	-	(43,763)	(43,763)

Balance, March 31, 2019	39,750,000	$ 398	$ 11,317,917	$ 606,927	$ (12,962,094)	$ (1,036,852)
The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
				FOR THE NINE MONTHS ENDED MARCH 31,
				2020	2019
CASH FLOWS OPERATING ACTIVITIES
	Net loss			$ (176,106)	$ (905,760)
	Adjustments to reconcile net loss to net cash used in operating activities:
		Imputed interest		21,773	19,617
	Impairment loss on film costs			-	732,944
	Noncash lease expense			12,255	-
	Changes in operating assets and liabilities:
	Accounts payable			-	5,500
			Accrued liabilities and other payable	39,049	54,231
			Operating lease liability – related party	2,078	-
Net cash used in operating activities				(100,951)	(93,468)

CASH FLOW FINANCING ACTIVITIES
			Proceeds from related party	94,805	89,742
Net cash provided by financing activities				94,805	89,742

Effect of exchange rate changes on cash and cash equivalents				5,425	(162)
NET CHANGE IN CASH AND CASH EQUIVALENTS				(721)	(3,888)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD				2,603	7,179
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD				$ 1,882	$ 3,291

SUPPLEMENTAL INFORMATION:
	Interest paid			$ -	$ -
	Income taxes paid			$ -	$ -



The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2020

NOTE 1. Description of Business

China Media Inc. (“we”, “our”, the “Company”, “China Media”), formerly Protecwerx Inc., was incorporated in the State of Nevada on October 16, 2007.

The Company does not conduct any substantive operations of its own; rather, it conducts its primary business operations through Vallant Pictures Entertainment Co., Ltd. (“Vallant”), its wholly owned subsidiary incorporated under the laws of the British Virgin Islands, which in turn, conducts its business through Xi’an TV Media Co. Ltd. (“Xi’An TV”). Effective control over Xi’An TV was transferred to the Company through the series of contractual arrangements without transferring legal ownership in Xi’An TV. As a result of these contractual arrangements, the Company maintained the ability to approve decisions made by Xi’An TV and was entitled to substantially all of the economic benefits of Xi’An TV.

Xi’An TV was incorporated in Xi’An, Shaan’xi Province, People’s Republic of China (“PRC”) and is in the business of investing, producing and developing film and television programming for the Chinese market.

NOTE 2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited interim consolidated financial statements of China Media Inc. have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2019 have been omitted.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis.

Recent Accounting Pronouncements

On July 1, 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (as amended by ASU 2018-01, 2018-10, 2018-11, 2018-20, and 2019-01, collectively ASC Topic 842), using the modified retrospective method. The Company elected the transition method which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. The Company elected not to record assets and

liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such lease on a straight-line basis over the lease term.

The primary impact of applying ASC Topic 842 is the initial recognition of $92,000 of lease liability and $62,000 of right-of-use asset on the Company’s consolidated balance sheet as of July 1, 2019, for lease classified as operating leases under ASC Topic 840, as well as enhanced disclosure of the Company’s leasing arrangement. There is no cumulative effect to retained earnings or other components of equity recognized as of July 1, 2019 and the adoption of this standard did not impact the consolidated statement of operations and comprehensive loss or consolidated statement of cash flows of the Company. The Company does not have finance lease arrangements as of March 31, 2020. See Note 4 for further discussion.

Going Concern

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations and has a working capital deficit as of March 31, 2020. The Company also generated negative operating cash flows and incurred net loss for the nine months ended March 31, 2020.

These matters, among others, raise substantial doubt about our ability to continue as a going concern. While the Company's cash position may not be significant enough to support the Company's daily operations, management intends to raise additional funds by way of cooperation with other film and television producers, obtaining loans from shareholders and borrowing from Dean Li, the President and Chief Executive Officer of the Company, to fund operations. The consolidated financial statements do not include any adjustments that may result should the Company be unable to continue as a going concern.

NOTE 3. Related Party Transactions

From time to time, the Company borrowed loans from Dean, Li, the President and Chief Executive Officer of the Company. As of March 31, 2020 and June 30, 2019, the Company owed Dean Li $789,285 and $717,974, respectively. The loans borrowed from Mr. Dean Li are unsecured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 3.39%-4.15% with reference to one-year loan.

The Company has a five-year lease agreement with Shaanxi Gede Trading Co., Ltd. (“Gede”) to lease its main office for a monthly rent of RMB11,167 (approximately $1,637) with a term of five years and expiration date on December 31, 2022. Gede’s Legal Representative and Chief Executive Officer is a major shareholder of the Company. As of March 31, 2020, the Company had a right-of-use asset of $48,404 and lease liability of $90,946 related to this lease. The Company also owed Gede rent payable of $42,613 for another lease that ended December 31, 2017. As of June 30, 2019, total rent payable owed to Gede was $73,270. See Note 4 for more details.

On December 11, 2018, the Company provided a guarantee for Shaanxi Hengtai Mingji Trading Co., Ltd.’s (“Hengtai”) two-year loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The loan was pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”), a related party of the Company. See Note 5 for more details.

NOTE 4. Operating Lease

On January 1, 2018, the Company entered into a lease agreement with Shaanxi Gede Trading Co., Ltd. (“Gede”), a related party, to lease its main office for a monthly rent of RMB11,167 (approximately $1,637) with a term of five years.

Balance sheet information related to the operating lease is as follows:

	March 31, 2020

Operating lease right-of-use asset – related party	$	48,404

Operating lease liability, current – related party	$	59,406
Operating lease liability, non-current – related party		31,540
Total operating lease liability	$	90,946

For the nine months ended March 31, 2020, the Company had operating lease cost of $14,333 and the reduction in operating lease right-of-use asset – related party was $12,255. No cash was paid for amount included in the measurement of operating lease liability – related party during the nine months ended March 31, 2020.

The weighted-average remaining lease term and the weighted-average discount rate of our lease are as follows:

					March 31, 2020
Weighted-average remaining lease term					2.75 years

Weighted-average discount rate					4.85%

The following table summarizes the maturity of our operating lease liability – related party as of March 31, 2020:

For The Years Ended June 30,
2020 (three months remaining)	$	47,269
2021		18,908
2022		18,908
2023 and thereafter		9,454
Total lease payment		94,539
Less imputed interest		(3,593)
Total lease liability – related party	$	90,946

NOTE 5. Commitments and Contingencies

On December 11, 2018, the Company entered into a guarantee agreement to provide guarantee for Shaanxi Hengtai Mingji Trading Co., Ltd.’s (“Hengtai”) two-year loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700). The guarantee period is two years starting from the date the payment is due. The loan is pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”) in the amount of RMB 226,000,000 and 50 million equity interest in Hengtai’s two shareholders. The controlling shareholder of Senzhiyuan is also a principal shareholder of the Company.

The information of lease commitment is provided in Note 4.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report.

Results of Operations

Comparison of the nine months ended March 31, 2020 and 2019:


	For Nine Months Ended March 31,
	2020		2019

Operating expenses
Selling, general and administrative expenses	$	154,287	$	153,152
Impairment loss		-		732,944
Total operating expenses		154,287		886,096

Other expense:
Interest expense		21,819		19,664
Total other expense		21,819		19,664

Net loss before income taxes		(176,106)		(905,760)
Income taxes		-		-
Net loss	$	(176,106)	$	(905,760)

Revenue and Cost

We had no sales and cost for the nine months ended March 31, 2020 and 2019.

Operating expenses

During the nine months ended March 31, 2020, our total operating expenses were $154,287, a decrease of $731,809 or 83% as compared to $886,096 for the nine months ended March 31, 2019. The decrease was primarily due to decrease in impairment loss on film costs.

Net loss

For the nine months ended March 31, 2020, we incurred a net loss of $176,106, as compared to a net loss of $905,760 for the nine months ended March 31, 2019, a decrease of $729,654 or 81%. This decrease was primarily due to the decrease in operating expenses.

Comparison of the three months ended March 31, 2020 and 2019:


	For Three Months Ended March 31,
	2020		2019

Operating expenses
Selling, general and administrative expenses	$	35,846	$	33,688
Impairment loss		-		3,943
Total operating expenses		35,846		37,631

Other expense:
Interest expense		6,299		6,132
Total other expense		6,299		6,132

Net loss before income taxes		(42,145)		(43,763)
Income taxes		-		-
Net loss	$	(42,145)	$	(43,763)

Revenue and Cost

We had no sales and cost for the three months ended March 31, 2020 and 2019.

Operating expenses

During the three months ended March 31, 2020, our total operating expenses were $35,846, a decrease of $1,785 or 5% as compared to $37,631 for the three months ended March 31, 2019. The decrease was primarily due to decrease in impairment loss on film costs which was offset by the increase in payroll expense.

Net loss

For the three months ended March 31, 2020, we incurred a net loss of $42,145, as compared to a net loss of $43,763 for the three months ended March 31, 2019, a decrease of $1,618 or 4%. This decrease was primarily due to the decrease in operating expenses.

Liquidity and Capital Resources

The following table sets forth a summary of our cash flows for the periods indicated:


	For the Nine Months Ended
	March 31,
	2020		2019

Net cash used in operating activities	$	(100,951)	$	(93,468)
Net cash provided by financing activities		94,805		89,742
Effect of exchange rate changes on cash and cash equivalents		5,425		(162)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(721)		(3,888)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		2,603		7,179
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,882	$	3,291

As of March 31, 2020, we had cash of $1,882 in our bank accounts and a working capital deficit of $1,217,158.

For the nine months ended March 31, 2020, we used net cash of $100,951 in operating activities, compared to net cash used of $93,468 in operating activities during the same period of 2019. The increase of $7,483 for net cash used in

operating activities was mainly due to the decrease in the change in accrued liabilities and other payable and accounts payable in this period.

During the nine months ended March 31, 2020, we received net cash of $94,805 from financing activities, compared to net cash received of $89,742 in financing activities during the same period in fiscal year 2019. The increase of $5,063 in net cash provided by financing activities was due to the increase in loan from a related party.

Our cash level decreased by $721 during the nine months ended March 31, 2020, compared to a decrease of $3,888 in the same period of 2019. The changes in cash were a result of the factors described above.

We anticipate that we will meet our ongoing cash requirements through equity or debt financing. We plan to cooperate with various individuals and institutions to acquire the financing required to produce and distribute our products and anticipate this will continue until we accrue sufficient capital reserves to finance all of our productions independently.

We intend to meet our cash requirements for the next 12 months through a combination of debt financing and equity financing and partnerships with finance groups on television and movie projects.

Impact of COVID-19 Pandemic

Our business could be affected by the recent outbreak of the COVID-19 disease. With an aim to contain the COVID-19 outbreak, the PRC government has imposed various strict measures across the PRC including, but not limited to, travel restrictions, mandatory quarantine requirements, and postponed resumption of business operations. Considering the features of our business in the media industries, we experienced business disruption as a result of those measures to contain the COVID-19 outbreak. Additionally, as COVID-19 continues to evolve into a worldwide health crisis, it has adversely affected the global economy and financial markets. If the COVID-19 outbreak is not effectively controlled in a short period of time, our business and results of operations could be adversely affected to the extent the COVID-19 outbreak harms the China or world economy generally. The extent to which the COVID-19 outbreak impacts our financial condition and results of operations for the full year of 2020 cannot be reasonably estimated at this time and will depend on future developments that currently cannot be predicted, including new information which may emerge concerning the severity of the COVID-19 outbreak and the actions to contain the COVID-19 outbreak or treat its impact.

Critical Accounting Policies and Estimates

Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2019 10-K for disclosures regarding our critical accounting policies and estimates. The interim financial statements follow the same accounting policies and methods of computations as those for the year ended June 30, 2019.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Inflation

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

Audit Committee

The functions of the audit committee are currently carried out by our Board of Directors, who has determined that we do not have an audit committee financial expert on our Board of Directors to carry out the duties of the audit committee. The Board of Directors has determined that the cost of hiring a financial expert to act as a director and to be a member

of the audit committee or otherwise perform audit committee functions outweighs the benefits of having a financial expert on the audit committee.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2020. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

Changes in Internal Control

Except as discussed above, there were no significant changes in our internal control over financial reporting (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) that occurred during the quarterly period that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not aware of any legal proceedings to which we are a party or of which our property is the subject. None of our directors, officers, affiliates, any owner of record or beneficially of more than 5% of our voting securities, or any associate of any such director, officer, affiliate or security holder are (i) a party adverse to us in any legal proceedings, or (ii) have a material interest adverse to us in any legal proceedings. We are not aware of any other legal proceedings that have been threatened against us.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Exhibit Description
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	China Media Inc.
	(Registrant)

	/s/ Dean Li
Date: May 15, 2020	Dean Li
	President, Chief Executive Officer
	(Principal Executive Officer)

CHINA MEDIA INC. 10-Q