Viva Entertainment Group Inc (OTTV)

[JG305]

From the 10-Q. Heavy consulting service expenses with zero revenue. Not to smart. Mr Falcones knows music but his judgement when running a business and hiring consultants is sorely lacking.

Between May 3, 2016 and July 31, 2016, the Company issued convertible promissory notes totaling $562,100. The notes bear interest at rates between 0-12% per annum and become due and payable six months from the date of issuance. The Company received proceeds of $527,000, net of original issuance discounts of 35,100 which included prepaid interest and legal expenses.

For the three months ended July 31, 2016 and 2015, we incurred operating expenses in the amounts of $1,373,239, and $-0- respectively. Our operating expenses were comprised of: (i) consulting services expenses of $791,355 and $-0- for the quarters ended July 31, 2016 and 2015, respectively (ii) general and administrative expenses of $155,346 and $-0- for the quarters ended July 31, 2016 and 2015, respectively, (iii) wage expenses of $221,538 and $-0- for the quarters ended July 31, 2016 and 2015, respectively, (iv) professional fees of $55,000 and $-0- for the quarters ended July 31, 2016 and 2015, respectively, and (v) content expense of $150,000 and $-0- for the quarters ended July 31, 2016, respectively. Due to a reverse merger into an operating company with no prior operations in April of 2016, there are no prior period expenses.