Mike Lindell Media, Corp.

What they do

The company is continuing development of an online movie channel featuring video on demand and a 24-hour streaming internet TV station with a subscriber-based business model. It also operates an online news and video news bureau in association with Leading Edge Radio Network and Mancuso Martin Productions.

Revenue drivers

• Online movie channel — Planned video-on-demand and 24-hour streaming internet TV station with limited free content and a subscriber-based model; no significant revenue has been reported from this line.
• Online news and video news bureau — Developed with Leading Edge Radio Network and Mancuso Martin Productions; expected to generate revenue through advertising or partnerships, but no material revenue has been reported.
• Revenue share agreements — Includes a revenue share agreement with The Car Flip Guys for a weekly internet television show, with expected income from the sale of a restored 1971 Ford Mustang; no revenue was recorded in 2017 or 2018.
• Potential golf equipment acquisition — Preliminary discussions regarding the acquisition of a golf ball and equipment company scheduled to debut in 2018; no revenue has been generated as of the latest filings.

Recent performance

For the year ended December 31, 2018, the company reported revenue of $1,400 and a net loss of $267,532. For the year ended December 31, 2017, revenue was $3,347 and net loss was $2,091,994. General and administrative expenses decreased to $187,621 for the year ended December 31, 2018, from $2,541,642 for the year ended December 31, 2017. Operating cash flow was negative $13,113 for the year ended December 31, 2018.

Strategy

The company continues development of its online movie channel and news bureau, and is pursuing revenue share agreements and strategic partnerships. It has preliminary discussions to acquire a golf ball and equipment company. Management believes additional capital will be needed to pursue its business plan, including any acquisitions.

Risks

• Going concern — The company has negative shareholder equity of $1.5 million as of December 31, 2018, and management states that it will need to attract additional capital to continue operations.
• Minimal revenue — Revenue has been negligible, totaling $1,400 in 2018 and $3,347 in 2017, and may not be sufficient to cover operating expenses.
• Dilution risk — The company may compensate service providers with stock or raise capital through equity or convertible debt, which could dilute existing shareholders.
• No risk factors disclosure — The 10-K states that risk factors are 'Not Applicable,' which may limit investors' understanding of potential risks.

Outlook

Management expects to continue developing its online movie channel, news bureau, and revenue share agreements. It anticipates completing the acquisition of a golf ball and equipment company in 2018, though no updates have been provided in the latest filings. The company acknowledges that it will need additional capital to pursue its business plan and may seek strategic alternatives including a merger or sale.