U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB/A
Amendment No. 1
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ending March 31, 2003
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
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Commission file number 33-58972
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URBAN TELEVISION NETWORK CORPORATION
---------------------------------------------------------------------
(Name of Small Business Issuer in its Charter)
NEVADA 22-2800078
--------------------------------- ---------------------------------
(State of Incorporation) (IRS Employer Identification No.)
18505 Highway 377 South, Fort Worth, TX 76126
-------------------------------------------- -----------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number,( 817 ) 512 - 3033
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Check whether the issuer (1)filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes X No ---
---
Applicable only to issuers involved in bankruptcy proceedings during the
preceding five years
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes No
--- ---
Applicable only to corporate issuers
State the number of shares outstanding of each of the issuer's class of
common equity, as of the latest practicable date: March 31, 2003, 14,664,636
shares of common stock, $.0001 par value.
Transitional Small Business Disclosure Format
(Check One)
Yes No X
--- ---
This Amendment No. 1 on Form 10-QSB/A (this "Amendment") is being filed in
order to amend the Registrant's Quarterly Report on Form 10-QSB for the quarter
ended March 31, 2003, filed with the Securities and Exchange Commission on May
15, 2003 (Form 10-QSB), to revise the Consolidated Financial Statements and the
Notes.
This Amendment is limited in scope to the portions of the Form 10-QSB set
forth above and does not in any way amend, update or change any other items or
disclosures contained in the Form 10-QSB.
2
PART I - FINANCIAL STATEMENTS
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Consolidated Balance Sheet
March 31, September 30,
2003 2002
(Unaudited) (Audited)
Assets
Currents assets
Cash and cash equivalents $ 198,083 $ --
Accounts receivable 11,291 5,766
Prepaid expenses 18,043 --
----------- -----------
Total current assets 227,417 5,766
----------- -----------
Furniture, fixtures and equipment, net 57,912 6,122
----------- -----------
Other assets
Network assets 456,516 512,416
Goodwill 943,721 --
Organizational costs 360 --
----------- -----------
Total other assets 1,400,597 512,416
----------- -----------
Total assets $ 1,685,926 $ 524,304
----------- -----------
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 243,465 $ 58,957
Bridge loan payable 219,000 --
Notes payable to stockholder 419,517 188,929
Accrued interest expense 44,062 3,415
Accrued payroll 125,000 --
Accrued payroll taxes payable 9,563 --
----------- -----------
Total current Liabilities 1,060,607 251,301
----------- -----------
Deferred income tax 182,685
-----------
Minority Interest 61,826
-----------
Stockholders' equity
Preferred stock, $1 par value, 500,000 shares authorized, none issued -- --
Common stock, $0.0001 par value, 200,000,000 shares authorized; 14,664,636
shares outstanding at March 31, 2003 1,467
Common stock, $0.01 par value, 50,000,000 shares authorized;
22,331,667 shares outstanding at September 30, 2002 223,316
Additional paid-in capital 6,991,711 5,362,562
Retained earnings (deficit) (6,019,484) (5,312,875)
----------- -----------
973,694 273,003
Less: Treasury stock (592,886) --
----------- -----------
Total stockholders' equity 380,808 273,003
----------- -----------
Total liabilities and stockholders' equity $ 1,685,926 $ 524,304
----------- -----------
See notes to financial statements.
See accountants reew report
3
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Consolidated Statement of Operations
(UNAUDITED)
Three months ended March 31, Six months ended March 31,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Revenues $ 43,870 $ -- $ 93,888 --
------------ ------------ ------------ ------------
Expenses:
Satellite and uplink services 161,122 -- 301,572 --
Production expenses 36,438 56,554 --
Technology expenses 61,034 132,534 --
Administration 64,688 9,645 228,603 6,945
Depreciation and amortization 34,450 -- 59,650 --
------------ ------------ ------------ ------------
Total expenses 354,732 9,645 778,913 6,945
------------ ------------ ------------ ------------
Income (loss) from operations (310,862) (9,645) (685,025) (6,945)
Other (income) expense
Interest income (expense) (14,357) -- (21,584)
Gain on extinquishment of debt -- -- -- 424,665
------------ ------------ ------------ ------------
Net increase (loss) $ (325,219) $ (9,645) $ (706,609) $ 417,720
------------ ------------ ------------ ------------
Earnings per share:
Net income (loss) $ (0.03) $ (0.03) $ (0.12) $ 1.37
Weighted average number of common
shares outstanding 10,181,969 311,583 5,732,636 311,583
See notes to financial statements.
See accountants review report
4
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Consolidated Statement of Stockholders' Equity
(UNAUDITED)
Common Stock Additional Retained
-------------------------- Paid-In Earnings
Shares Amount Capital (Deficit) Total
----------- ----------- ----------- ----------- -----------
Balance at September 30, 2000 6,207,236 $ 62,072 $ 4,879,134 $(5,361,824) $ (420,618)
Net loss for year ended
September 30, 2001 -- -- -- (82,774) $ (82,774)
----------- ----------- ----------- ----------- -----------
Balance at September 30, 2001 6,207,236 62,072 4,879,134 (5,444,598) $ (503,392)
Contributed capital -- -- 85,428 85,428
Stock issued for asset
Acquisition 16,000,000 160,000 389,000 549,000
Stock issued to Hispanic
Television Network 100,000 1,000 9,000 -- 10,000
Stock issued for prior
year agreements 24,431 244 -- -- 244
Net income for year ended
September 30, 2002 -- -- -- 131,723 131,723
----------- ----------- ----------- ----------- -----------
Balance September 30, 2002 22,331,667 223,316 5,362,562 (5,312,875) 273,003
Adjust outstanding shares to
reflect reverse stock split (21,215,031) (212,150) 212,150 -- --
Adjustment to reflect
the restated par value -- (11,054) 11,054 -- --
Issuance of shares for services 300,000 30 82,470 -- 82,500
Stock issued for majority interest in
Urban Television of Texas 13,248,000 1,325 1,323,475 -- 1,324,800
Net loss for six months ended
March 31, 2003 -- -- -- (706,609) (706,609)
----------- ----------- ----------- ----------- -----------
Balance March 31, 2003 14,664,636 $ 1,467 $ 6,991,711 $(6,019,484) $ 973,694
----------- ----------- ----------- ----------- -----------
See notes to financial statements.
See accountants review report
5
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Consolidated Statement of Cash Flows
(UNAUDITED)
Three months ended March 31, Six months ended March 31,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Operating Activities
Net income (loss) $ (325,219) $ (9,645) $ (706,609) $ 417,720
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 31,450 -- 59,650 --
Issuance of common stock for services rendered -- -- 82,500 --
Changes in operating assets and liabilities:
Accounts receivable 3,171 -- (5,525) --
Prepaid expenses -- -- (18,043) --
Accounts payable 107,672 (5,000) 181,890 (72,428)
Accrued interest expense 14,356 -- 22,473 (218,261)
Accrued payroll expense 62,500 -- 125,000 --
Accrued payroll tax expense 4,782 (2,355) 9,563 (2,355)
Bridge loan payable 219,000 -- 219,000 --
Notes payable 100,500 -- 255,272 (210,348)
------------ ------------ ------------ ------------
Net cash provided by operating activities 218,212 (17,000) 225,171 (85,672)
------------ ------------ ------------ ------------
Investing Activities
Capital expenditures (23,145) -- (27,088) --
------------ ------------ ------------ ------------
Net cash (used in) investing activities (23,145) -- (27,088) --
------------ ------------ ------------ ------------
Financing Activities
Issuance of stock for debt extinquishment -- -- -- 2,944
Contributed capital -- 17,000 -- 85,428
Cancellation of shares -- -- -- (2,700)
------------ ------------ ------------ ------------
Net cash provided by financing activities -- 17,000 -- 85,672
------------ ------------ ------------ ------------
Increase (decrease) in cash 195,957 -- 198,083 --
Cash at beginning of period 3,016 -- -- --
------------ ------------ ------------ ------------
Cash at end of period $ 198,083 $ -- $ 198,083 $ --
------------ ------------ ------------ ------------
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ -- $ --
Income taxes $ -- $ -- $ -- $ --
$ -- $ --
Non-cash transactions:
Extinquishment of debt $ -- $ -- $ -- $ 424,665
Cancellation of shares $ -- $ -- $ -- $ 2,700
See notes to financial statements.
See accountants review report
6
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2003
(UNAUDITED)
1. BASIS OF PRESENTATION:
The unaudited financial statements have been prepared by the Company,
pursuant to the rules and regulations of the Securities and Exchange
Commission. These financial statements and the notes hereto should be read
in conjunction with the financial statements and notes thereto included in
the Company's Form 10-KSB for the year ended September 30, 2002, which was
filed December 31, 2002. In the opinion of the Company, all adjustments,
including normal recurring adjustments necessary to present fairly the
financial position of Urban Television Network Corporation as of March 31,
2003 and the results of its Operations and cash flows for the six months
then ended, have been included. The results of operations for the interim
period are not necessarily indicative of the results for the full year.
ACCOUNTING POLICIES:
There have been no changes in accounting policies used by the Company
during the six months ended March 31, 2003.
2. Significant Accounting Policies
Organization and Business
Waste Conversion Systems, Inc. was incorporated under the laws of the state
of Nevada on October 21, 1986. On June 10, 2002 the company changed its
name to Urban Television Network Corporation. The name change coincided the
company's acquisition of assets from the Urban Television Network
Corporation, a Texas corporation. Urban Television Network Corporation
("UTVN") and its subsidiaries, together, the "Company") are engaged in the
business of supplying programming to broadcast television stations and
cable systems. Formerly the company's business had been the marketing of
thermal burner systems that utilize industrial and agricultural waste
products as fuel to produce steam, which generates electricity,
air-conditioning or heat.
Principles of Consolidation
The consolidated financial statements include the account of the company
and those majority-owned subsidiaries in which the company has control. All
significant intercompany accounts and transactions are eliminated in
consolidation. The accounts and results of operations of controlled
subsidiaries where ownership is greater than 50 percent, but less than 100
percent are included in the consolidated results and are offset by a
related minority expense and liability recorded for the minority interest
ownership. The Company owns 100% of Waste Conversion Systems of Virginia,
Inc. which had no assets or liabilities at September 30, 2002 and March 31,
2003 and no revenues or expenses for the year ended September 30, 2002 and
the six months ended March 31, 2003. The Company owns 90% of Urban
Television Network Corporation, a Texas corporation (See note 5).
Non Goodwill Intangible Assets
Intangible assets other than goodwill consist of network assets acquired by
purchase. They are being amortized over their expected lives of 5 years and
are reviewed for potential impairment whenever events or circumstances
indicate that carrying amounts may not be recoverable. No impairment loss
was recognized during the reporting period. On January 1, 2002, the Company
adopted Statement of Financial Accounting Standards No. 142, Goodwill and
Intangible Assets. This provides that a recognized intangible shall be
amortized over its useful life to the reporting entity unless that life is
determined to be indefinite. The amount of an intangible asset to be
amortized shall be the amount initially assigned to that asset less any
residual value.
Income (Loss) Per Share
Income (loss) per common share is computed by dividing net income (loss) by
the weighted average number of common shares outstanding. Stock options and
warrants are anti-dilutive, and accordingly, are not included in the
calculation of income (loss) per share.
Cash
For purposes of the statement of cash flows, the Company considers
unrestricted cash and all highly liquid debt instruments purchased with an
original maturity of three months or less to be cash.
7
URBAN TELEVISION NETWORK CORPORATION
And Subsidiaries
Notes to Consolidated Financial Statements, Continued
March 31, 2003
(UNAUDITED)
2. Significant Accounting Policies (Continued)
Advertising Costs
The Company expenses non-direct advertising costs as incurred. The Company
did not incur any direct response advertising costs for the fiscal year
ended September 30, 2002 and the six months ended March 31, 2003.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Recent Accounting Standards
The FASB issued SFAS No. 140, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities." The Statement
provides guidance for determining whether a transfer of financial assets
should be accounted for as a sale or a secured borrowing, and whether a
liability has been extinguished. The Statement is effective for recognition
and reclassification of collateral and for disclosures ending after
December 15, The Statement is effective for transfers and servicing of
financial assets and extinguishments of liabilities occurring after March
31, 2001. The initial application of SFAS No. 140 will have no impact to
the Company's results of operations and financial position.
In June, 2001 the Financial Accounting Standards Board issued Statements of
Financial Accounting Standards No. 141, "Business Combinations" and No. 142
"Goodwill and Other Intangible Assets." These statements prohibit
pooling-of-interest accounting for Transactions initiated after June 30,
2001, require the use of the purchase method of accounting for all
combinations after June 30, 2001, and establish new standards for
accounting for goodwill and other intangibles acquired in business
combinations. The Company does not expect these pronouncements to have a
material affect on its financial statements.
Stock Options
The Company accounts for non-employee stock options under SFAS 123, whereby
option costs are recorded at the fair value of the consideration received
or the fair value of the equity instrument issued, whichever is more
reliable measurement, in accordance with EITF 96-18 "Accounting for Equity"
instruments that are issued to other than employees for acquiring or in
conjunction with selling Goods or Services.
The Company adopted in February 1993 an employee stock option plan. There
are no options outstanding under this plan. This plan will be accounted for
under FAS 123 as described above.
3. Network Assets - Amortization
On May 1, 2002, the Company entered into an agreement with Urban Television
Network Corporation, a Texas corporation, (UTVN-Texas) to acquire the
rights to the UATV Network signal space which included the assignment of
the UATV affiliates for 16,000,0000 shares of common stock with an
estimated fair market value of $559,000. These assets purchased are
referred to as network asset.
Network assets consist of intangibles other than Goodwill. These assets
automatically renew every year unless either party terminates the agreement
by such notification to the other party. A useful life of five (5) years is
estimated for the assets. These agreements are not expected to be
terminated by either party prior to its useful life period. Total
amortization of these assets has been $102,484 and the amortization for the
period ended September 30, 2002 was $46,584 and for the six months ended
March 31, 2003 was $255,900.
Future amortization of the Network assets at December 31, 2002 will be
$484,466 and on an annual basis be as follows:
Year ended September 30, 2003 $ 55,904
Year ended September 30, 2004 $111,804
Year ended September 30, 2005 $111,804
Year ended September 30, 2006 $111,804
Year ended September 30, 2007 $ 65,200
8
URBAN TELEVISION NETWORK CORPORATION
And Subsidiaries
Notes to Consolidated Financial Statements, Continued
March 31, 2003
(UNAUDITED)
4. Property, Plant and Equipment
The Company acquired equipment totaling $64,795. This was recorded at cost
and depreciation on a straight-line basis over five (5) years. Depreciation
for fiscal year and accumulated at September 30, 2002 was $783.00.
Depreciation for the six months ended March 31, 2003 was $3,750 and the
accumulated at March 31, 2003 was $6,883.
5. Acquisition
On February 7, 2003, the Company entered into an Exchange Agreement with
the majority shareholders of Urban Television Network Corporation, a Texas
corporation (UTNC). The Company acquired 90% of the issued and outstanding
capital stock of UTNC in Return for 13,248,000 shares of the Company's
common stock valued at $1,324,800. The valuation of the common stock paid
by the Company as consideration was established by the Company at $.10 per
share based on the restricted nature of the stock, the low trading history
of the stock at the time of the acquisition. The acquisition was made to
complete the acquisition of the balance of the UTNC assets including
proprietary broadcast technologies, intellectual property and goodwill. The
acquisition was accounted for under the purchase method. The purchase price
has been allocated to the assets acquired and liabilities assumed based on
their estimated fair market value. Any excess purchase price over the fair
market value of the net assets acquired has been recorded as goodwill. In
this transaction the allocation of the purchase price resulted in goodwill
of $761,036. The estimated fair values of assets acquired and liabilities
assumed are summarized in the following table.
Fair Value of Assets Acquired and Liabilities Assumed
Cash $ 889
Equipment 28,452
Investment in stock of the Company 592,886
Receivable from the Company 258,458
Other assets 360
Goodwill 761,037
Accounts payable (2,618)
Loans to stockholders (233,774)
Accrued interest (19,064)
Minority Interest (61,826)
-----------
Total purchase price $ 1,324,800
-----------
The following unaudited pro forma information consolidates the balance
sheets of the Company and UTNC at the acquisition date of February 7, 3003.
Deferred income tax of $182,685 was recorded to give effect to $537,311 of
excess book over tax basis for the assets acquired by the Company.
Consolidated
Consolidation Balance
The Company UTNC Entries Sheet
Assets
Current assets $ 44,873 $ 889 $ 45,762
Equipment, net 10,260 28,452 38,712
Network assets, net 472,966 472,966
Investment in subsidiary 592,886 $ (592,886) --
Receivable from affiliate 258,458 (258,458) --
Goodwill and other assets -- 360 973,722 761,397
----------- ----------- ----------- -----------
Total Assets $ 528,099 $ 881,045 $ 272,992 $ 1,501,522
----------- ----------- ----------- -----------
Liabilities and Stockholders' Equity
Accounts payable and other accruals $ 284,741 $ 21,682 $ 306,423
Advances from shareholders 373,701 233,774 $ (258,458) 349,017
Deferred income tax 182,685 182,685
Minority interest 61,826 61,826
Common stock 142 1,477 (1,477) 1,466
1,324
Additional paid-in capital 5,668,236 1,396,307 (1,396,307) 6,991,712
1,323,476
Accumulated deficit (5,798,721) (772,195) 772,195 (5,798,721)
Treasury stock -- -- (592,886) (592,886)
----------- ----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $ (528,099) $ 881,045 $ 272,992 $ 1,501,522
----------- ----------- ----------- -----------
9
URBAN TELEVISION NETWORK CORPORATION
And Subsidiaries
Notes to Consolidated Financial Statements, Continued
March 31, 2003
(UNAUDITED)
5. Acquisition (Continued)
The Company's consolidated results of operations have incorporated UTNC's
activity from the effective date of the acquisition. The following
unaudited pro forma information combines the consolidated results of
operations of the Company with those of UTNC as if the acquisition had
occurred on October 1, 2001.
` Six months ended Six months ended Year ended
March 31, 2003 March 31, 2002 September 30, 2002
---------------- ---------------- ------------------
Revenues $ 93,888 $ 36,045 $ 143,742
Net income (loss) $ (713,939) $ 255,151 $ (185,427)
Income (loss) per share $ (.049) $ .017 $ (.013)
This pro forma financial information is presented for comparative purposes
only and is not necessarily indicative of the operating results that
actually would have occurred had the UTNC acquisition been consummated on
October 1, 2001. In addition, these results are not intended to be a
projection of future results and do not reflect any synergies that might be
achieved from combined operations.
6. Other Income
Extinguishment of Debt
Since Waste Conversion Systems, Inc. ceased operations in 1996, it did not
pay any of its obligations, related to previous operations. For those trade
creditors and note holders that did not extend the statute of limitations
on collection of their accounts through legal actions, the Company has been
taking the write off of the payables into income as the statutory period
for collection expires. The income was $424,665 ($0.014 per share) and
$8,880 (less than $0.01 per share)for fiscal 2002 and 2001, respectively.
7. Related Party Transactions
In May 2002, the Company issued 16,000,000 shares to Urban Television
Network Corporation for asset purchase of network assets. (See Note 3,
Network Assets)
The Company leases office space from one its shareholders and director for
$2,000 per month. The total rental expense for year ended September 30,
2002 was $12,000 and for the six months ended March 31, 2003 was $6,000.
8. Notes Payable
Notes payable consist of:
March 31, September 30,
2002 2002
------------- -------------
Notes payable to stockholders at 10%
interest payable on September 30, 2004 $ 419,517 $ 188,929
------------- -------------
9. Convertible Bridge Loan
Convertible bridge loan consist of:
March 31, September 30,
2002 2002
------------- -------------
Convertible bridge loan payable to
individuals at 6% interest payable
on February 14, 2004 $ 219,005 $ --
------------- -------------
The convertible bridge loans are convertible at any time before the
maturity date into the Company's common stock at the rate of two shares of
common stock for each dollar of convertible bridge loan plus accrued
interest through the date of conversion
10
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Notes to Consolidated Financial Statements, Continued
December 31, 2002
(UNAUDITED)
10. Income Tax
The Company has, for income tax purposes, approximately $4,950,000 in net
operating loss carryforwards at September 30, 2002, available to offset
future years' taxable income and expiring in varying amounts through the
year 2015. A deferred tax asset of approximately $2,032,000 has been offset
by a 100% valuation allowance. The annual utilization of the loss
carryforward will be limited under Internal Revenue Code Section 382
provisions due to the recent stock issuances. The Company accounts for
income taxes pursuant to the Statement of Financial Accounting Standards
No.109. The Company has no current or deferred income tax component.
11. Capital Stock
In May 2002, the Company issued 16,000,000 shares to Urban Television
Network Corporation for asset purchase of network assets. (See Note 3
Network Assets)
In September 2002, the Company issued 100,000 shares to Hispanic Television
Network, Inc. as part of the mutual settlement agreement between the two
companies to cancel the Satellite Transponder Service Agreement and notes
payable/receivable.
On November 21, 2002 the Company completed a 1:20 reverse stock split and
amended its Articles of Incorporation to increase its authorized common
shares to 200,000,000 and adjust its par value to $0.0001 per share.
In December 2002, the Company issued 300,000 shares of its common stock for
consulting and legal Services.
On February 7, 2003, the Company entered into an Exchange Agreement with
the majority shareholders of Urban Television Network Corporation, a Texas
corporation (UTNC). The Company acquired 90% of the issued and outstanding
capital stock of UTNC in return for 13,248,000 shares of the Company's
common stock
12. Preferred Stock
The Articles of Incorporation of the Company authorize issuance of a
maximum of 500,000 shares of nonvoting preferred stock with a par value of
$1.00 per share. The Articles of Incorporation grant the Board of Directors
of the Company authority to determine the designations, preferences, and
relative participating, optional or other special rights of any preferred
stock issued.
No preferred shares had been issued as of December 31, 2002.
13. Commitments
Satellite Transponder Lease
The Company entered into a Satellite space segment service agreement with
Loral Skynet on November 20, 2002 for 6 MHz of satellite bandwidth on
Telstar 5 for a period of three year ending on November 21, 2005. For the
six months ended March 31, 2003, the amount expensed was $72,172.
Future lease payments due during the term of the lease ending on November
21, 2005 will equal $577,376 and be due as follows:
Year ended September 30, 2003 $108,258
Year ended September 30, 2004 $216,516
Year ended September 30, 2005 $216,516
Year ended September 30, 2006 $ 36,086
The Company entered into a Full Time Broadcast Agreement with Verestar,
Inc. on November 21, 2002 for a full time redundant 6 MHz digital C-band
uplink service for a period of three years ending on November 21, 2005. For
the six months ended March 31, 2002 the amount expensed was $32,000.
Future lease payments due during the term of the lease ending on November
21, 2005 will equal $256,000 and be due as follows:
Year ended September 30, 2003 $48,000
Year ended September 30, 2004 $96,000
Year ended September 30, 2005 $96,000
Year ended September 30, 2006 $16,000
11
URBAN TELEVISION NETWORK CORPORATION
and Subsidiaries
Notes to Consolidated Financial Statements, Continued
December 31, 2002
(UNAUDITED)
14. Going Concern
The Company has suffered recurring losses from operations. In order for the
Company to sustain operations and execute its television broadcast and
programming business plan , capital will need to be raised to support
operations as the company executes its business plan. These conditions
raise substantial doubt about the Company's ability to continue as a going
concern.
The Company may raise additional capital through the sale of its equity
securities, or debt securities.
12
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: June 12, 2003
Urban Television Network Corporation
By: /s/ Randy Moseley By: /s/ Stanley Woods
------------------ ------------------
Randy Moseley Stanley Woods
Title: President Title: Secretary
13