10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

 [x] Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended June 30, 2016

-OR-

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities And Exchange Act of 1934 for the transaction period from _________ to________

Commission File Number      000-55516

Original Source Music, Inc.

(Exact name of Registrant in its charter)

Nevada	20-8594615
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

8201 South Santa Fe Drive #229 Littleton, CO	80120
(Address of Principal Executive Offices	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (303) 495-3728

Indicate by check mark 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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes [ ]   No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerate filer, or a small reporting company as defined by Rule 12b-2 of the Exchange Act):

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ] No [X ]

The number of outstanding shares of the registrant's common stock, August 15, 2016:  Common Stock – 5,073,000

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ORIGINAL SOURCE MUSIC, INC.

FORM 10-Q

INDEX

PART 1 – FINANCIAL INFORMATION

	Page
Item 1.  Financial Statements	4
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.  Quantitative and Qualitative Disclosure About Market Risk	16
Item 4.  Controls and Procedures	17

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings	18
Item 1A. Risk Factors	18
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.  Defaults Upon Senior Securities	18
Item 4.  Mine Safety Disclosure	18
Item 5.  Other Information	18
Item 6.  Exhibits	18
SIGNATURES	19

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ORIGINAL SOURCE MUSIC, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

	June 30, 2016	December 31, 2015
ASSETS
Current Assets
Cash	$         4,277	$          1,838
Total Current Assets	4,277	1,838
TOTAL ASSETS	$         4,277	$          1,838
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities Accrued liabilities & accounts payable	$             100	$          5,802
Accrued interest to a related party	873	400
Convertible notes payable-related party, net of debt discount	20,122	13,619
Total Current Liabilities	21,095	19,821
Long-Term Liabilities
Convertible notes payable-related party, net of debt discount	712	-
Total Long-Term Liabilities	712	-
Total Liabilities	21,807	19,821
Stockholders’ Deficit    Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued and outstanding	-	-
Common stock, $0.001 par value; 45,000,000 shares authorized; 5,073,000shares issued and outstanding
	5,073	5,073
Additional Paid-in Capital	34,061	18,444
Accumulated deficit	(56,664)	(41,500)
Total Stockholders' Deficit	(17,530)	(17,983)
TOTAL LIABILITIES & STOCKHOLDERS' DEFICIT	$         4,277	$         1,838

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

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ORIGINAL SOURCE MUSIC, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months	Three Months	Six Months	Six Months
	Ended	Ended	Ended	Ended
	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015
Revenue	$              91	$         300	$         193	$            413
Operating Expenses:
General and administrative	130	123	255	247
Professional fees	7,114	-	7,414	9,000
Total Operating Expenses	7,244	123	7,669	9,247
Income (Loss) from Operations	(7,153)	177	(7,476)	(8,834)
Interest (Expense) to a related party	(3,438)	(3,697)	(7,688)	(5,395)
Income (Loss) before Provision for Income Taxes	(10,591)	(3,520)	(15,164)	(14,229)
Income Tax Provision	-	-	-	-
Net Income (Loss)	$    (10,591)	$     (3,520)	$     (15,164)	$    (14,229)
Net loss per common share basic and diluted	$      ( 0.00)*	$     ( 0.00)*	$      (0.00)*	$     ( 0.00)*
Weighted average number of common shares
Outstanding- Basic and diluted	5,073,000	5,073,000	5,073,000	5,073,000

*denotes a (loss) or income of less than $0.01 per share.

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

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ORIGINAL SOURCE MUSIC, INC.

CONDENSED STATEMENTS OF CASH FLOWS

 (UNAUDITED)

	Six Months	Six Months
	Ended	Ended
	June 30, 2016	June 30, 2015
Operating Activities:
Net Income (Loss)	$        (15,164)	$        (14,229)
Adjustments to reconcile net Income (Loss) to net cash used in operating activities:
Amortization of debt discount	7,215	5,395
Accrued interest to a related party	473	-
Movement in operating assets and liabilities:
Accrued expenses	(5,702)	(3,000)
Net Cash (Used in) Provided by Operating Activities	(13,178)	(11,834)
Investing Activities:
	-	-
Net Cash Used in Investing Activities	-	-
Financing Activities:
Advances under convertible notes payable
-related party	15,617	12,000
Net Cash Provided by Financing Activities	15,617	12,000
Net Change in Cash	2,439	166
Cash - Beginning of Period	1,838	205
Cash - End of Period	$         4,277	$            371
Supplemental cash flow information:
Cash paid for:
Interest	$                 -	$                 -
Taxes	$                 -	$                 -
Non-Cash Activities Beneficial conversion feature	$                 -	$                 -

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

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ORIGINAL SOURCE MUSIC, INC.

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2016 AND 2015

(UNAUDITED)

NOTE 1: ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Original Source Music, Inc. (“the Company”, “we”, “us” or “our’) was incorporated in the State of Nevada on August 20, 2009 ("Inception"). The Company licenses songs to the television and music industry for use in television shows or movies. The Company has had limited activity and revenue to date.

Basis of Preparation of Financial Statements

The accompanying financial statements of Original Source Music, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016.  For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 included in our registration statement filed with the SEC.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as of June 30, 2016 or December 31, 2015.

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Basic and Diluted Earnings (Loss) Per Share

The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period.  Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive.  During the three and six months ended June 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding.  However, the shares potentially issuable under these notes have been excluded from the calculation of loss per share as the inclusion of such shares would have been anti-dilutive as the Company recognized a loss during the three and six months ended June 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and six months ended June 30, 2016.

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company

NOTE 2: GOING CONCERN

The unaudited financial statements for the three and six months ended June 30, 2016 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has suffered a loss from operations and has negative cash flows from operations, and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. 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, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of licensing songs to the television and music industry for use in television shows or movies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

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NOTE 3: CONVERTIBLE NOTES PAYABLE – RELATED PARTY

		June 30, 2016	June 30, 2015
Convertible Note A
	Principal	$                              3,255	$                                3,255
	Debt discount	$                                      -	$                              (1,860)
Convertible Note B
	Principal	$                              6,000	$                                6,000
	Debt discount	$                                      -	$                              (3,500)
Convertible Note C
	Principal	$                              6,000	$                                6,000
	Debt discount	$                                     -	$                              (4,500)
Convertible Note D
	Principal	$                              3,260	$                                        -
	Debt discount	$                           (1,304)	$                                        -
Convertible Note E
	Principal	$                               1,500	$                                        -
	Debt discount	$                               (794)	$                                        -
Convertible Note F
	Principal	$                               5,703	$                                        -
	Debt discount	$                            (3,802)	$                                        -
Convertible Note G
	Principal	$                               7,114	$                                        -
	Debt discount	$                            (6,402)	$                                        -
Convertible Note H
	Principal	$                               2,500	$                                        -
	Debt discount	$                            (2,212)	$                                        -
Convertible Note I
	Principal	$                                  300	$                                        -
	Debt discount	$                               (284)	$                                        -
Total convertible notes payable -non related party,
net of debt discount		$                           20,834	$                                 5,395

Convertible Note A:

On December 31, 2014 a related party loaned the Company $3,255. The note is interest free until June 30, 2015 after which time it’ll bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $3,255 as of June 30, 2016 and

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matured on February 28, 2016 but was extended to December 31, 2016 . The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $3,255. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note B:

On January 21, 2015 a related party loaned the Company $6,000. The note is interest free until June 30, 2015 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $6,000 as of June 30, 2016 and matured on January 30, 2016 but was extended to December 31, 2016 .  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $6,000.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note C:

On March 30, 2015 a related party loaned the Company $6,000. The note is interest free until August 31, 2015 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $6,000 as of June 30, 2016 and matured on March 30, 2016.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $6,000.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.  This note is currently in default.

Convertible Note D:

On September 14, 2015 a related party loaned the Company $3,260. The note is interest free until June 30, 2016 after which time it’ll bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $3,260 as of June 30, 2016 and matures on December 31, 2016. The Company assessed the embedded conversion feature

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and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $3,260. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note E:

On November 6, 2015 a related party loaned the Company $1,500. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $1,500 as of June 30, 2016 and matures on December 31, 2016.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $1,500.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note F:

On February 16, 2016 a related party loaned the Company $5,703. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $5,703 as of June 30, 2016 and matures on March 31, 2017.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $5,703.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note G:

On May 6, 2016 a related party loaned the Company $7,114. The note is interest free until December 31, 2016 after which time it’ll bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $7,114 as of June 30, 2016 and matures on December 31, 2017. The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $7,114. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

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Convertible Note H:

On May 20, 2016 a related party loaned the Company $2,500. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $2,500 as of June 30, 2016 and matures on June 13, 2017.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $2,500.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note I:

On June 13, 2016 a related party loaned the Company $300. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $300 as of June 30, 2016 and matures on March 31, 2017.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $300.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

NOTE 4 – SPIN-OFF

On February 5, 2014, the board of directors of Original Source Entertainment authorized the spin-off of the Company to shareholders of record as of February 25, 2014.  The spin-off was done in connection with a change of control of Original Source Entertainment.  Under the terms of the spin-off, the Company’s common shares, par value $0.001 per share, will be distributed on a pro-rata basis to each holder of Original Source Entertainment’s common shares on the record date without any consideration or action on the part of such holders, and the holders of Original Source Entertainment’s common shares as of the record date will become owners of 100 percent of our common shares.

On May 13, 2016, the spin-off was completed due to the satisfactory resolution of all comments from the Securities and Exchange Commission to the Form 10 and the Form 10’s effectiveness.

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NOTE 5: INCOME TAXES

As of June 30, 2015 the Company had net operating loss carry forwards of approximately $23,781 that may be available to reduce future years’ taxable income through 2035. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $23,781 for Federal income tax reporting purposes are subject to annual limitations should a change in ownership occur.

NOTE 6: SUBSEQUENT EVENTS

In accordance with ASC 855-10, "Subsequent Events" the Company has analyzed its operations subsequent to June 30, 2016 to the date these financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than as disclosed above.

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

Forward-Looking Statements

This Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. These statements include those concerning the following:  Our intentions, beliefs and expectations regarding the fair value of all assets and liabilities recorded; our strategies; growth opportunities; product development and introduction relating to new and existing products; the enterprise market and related opportunities; competition and competitive advantages and disadvantages; industry standards and compatibility of our products; relationships with our employees; our facilities, operating lease and our ability to secure additional space; cash dividends; excess inventory, our expenses; interest and other income; our beliefs and expectations about our future success and results; our operating results; our belief that our cash and cash equivalents will be sufficient to satisfy our anticipated cash requirements, our expectations regarding our revenues and customers; investments and interest rates.  These statements are subject to risk and uncertainties that could cause actual results and events to differ materially.

The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-Q.

Critical Accounting Policies

The financial statements and accompanying footnotes included in this report has been prepared in accordance with accounting principles generally accepted in the United States with certain amounts based on management’s best estimates and judgments. To determine appropriate carrying values of assets and liabilities that are not readily available from other sources, management uses assumptions based on historical results and other factors they believe are reasonable.  Actual results could differ from those estimates.

Our critical accounting policies are described in our Annual Report on Form 10-K for the year ended December 31, 2015.  There have been no material changes to our critical accounting policies as of and for the three months ended June 30, 2016.

Trends and Uncertainties

Demand for the Company's products is dependent on general economic conditions, which are cyclical in nature.  Because a major portion of our activities are the receipt of revenues from our music licensing services, our business operations may be adversely affected by competitors and prolonged recessionary periods.

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There are no other known trends, events or uncertainties that have, or are reasonably likely to have, a material impact on our short term or long term liquidity.  Sources of liquidity will come from sales of our products and services.  There are no material commitments for capital expenditure at this time.  There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on the net sales or revenues or income from continuing operations.  There are no significant elements of income or loss that do not arise from the Company’s continuing operations.  There are no other known causes for any material changes from period to period in one or more line items of our financial statements.  

Capital and Sources of Liquidity

We have $4,227 in cash as of June 30, 2016.  Based on our current income and expenses, we estimate that we will require an average of $32,000 to continue operations.  With our current cash supply, we do not have sufficient funds to continue operations.  We have access to funding of up to $96,000 through related party loans, and utilizing current estimates.  These loans are not guaranteed.  We have no guarantee that we will generate sufficient revenues to continue operations beyond that estimate.

For the six months ended June 30, 2016, we recorded a net loss of $15,164.  We had a positive adjustment of $7,215 due to the amortization of debt discount and $473 due to accrued interest to a related party.  We had a negative change of $5,702 due to accrued expenses.  As a result, we had net cash used in operating activities of $13,178 for the six months ended June 30, 2016.

For the six months ended June 30, 2015, we recorded a net loss of $14,229.  We had a positive adjustment of $5,395 due to the amortization of debt discount, and a negative change of $3,000 due to accrued expenses.  As a result, we had net cash used in operating activities of $11,834 for the six months ended June 30, 2015.

For the six months ended June 30, 2016 and 2015, we did not pursue any investing activities.

For the six months ended June 30, 2016, we received $15,617 from an advance under convertible notes payable from a related party, resulting in net cash provided by financing activities of $15,617 for the period.

For the six months ended June 30, 2015, we received $12,000 from an advance under convertible notes payable from a related party, resulting in net cash provided by financing activities of $12,000 for the period.

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Results of Operations

For the three months ended June 30, 2016, we recorded revenues of $91.  We paid general and administrative expenses of $130 and professional fees of $7,114.  We had interest expense to a related party of $3,438.  As a result, we had net loss of $10,591 for the three months ended June 30, 2016.

Comparatively, for the three months ended June 30, 2015, we recorded revenues of $300.  We paid general and administrative expenses of $123 and had interest expense to a related party of $3,697.  As a result, we had net loss of $3,520 for the three months ended June 30, 2015.

The $7,071 difference between the net loss for the three months ended June 30, 2016 compared to the three months ended June 30, 2015 is primarily the result of increased professional fees.  We paid increased professional fees during the three months ended June 30, 2016 as a result of the completion of the spin-off and the increased costs of being a reporting company.

For the six months ended June 30, 2016, we recorded revenues of $193.  We paid general and administrative expenses of $255 and professional fees of $7,414.  We had interest expense to a related party of $7,688.  As a result, we had net loss of $15,164 for the six months ended June 30, 2016.

Comparatively, for the six months ended June 30, 2015, we recorded revenues of $413.  We paid general and administrative expenses of $247 and professional fees of $9,000.  We had interest expense to a related party of $5,395.  As a result, we had net loss of $14,229 for the six months ended June 30, 2015.

The $935 difference between the net loss for the six months ended June 30, 2016 compared to the net loss for the six months ended June 30, 2015 is a result of the increased interest expenses paid to a related party during the six months ended June 30, 2015.  This expense was incurred as part of our fundraising efforts.

Off-Balance Sheet Arrangements

The registrant had no material off-balance sheet arrangements as of June 30, 2016.

Contractual Obligations

The registrant has no material contractual obligations

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Not applicable for a smaller reporting company.

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Item 4.  Controls and Procedures.

Controls and Procedures.

Evaluation of Disclosure Controls and Procedures:

We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to insure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the 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, or the persons performing similar functions, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our CEO and CFO, or the persons performing similar functions, our management has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report. Based on that evaluation, our CEO and CFO, or the persons performing similar functions, concluded that our disclosure controls and procedures were not effective as of June 30, 2016.

Evaluation of Changes in Internal Control over Financial Reporting:

Under the supervision and with the participation of our CEO and CFO, or those persons performing similar functions, our management has evaluated changes in our internal controls over financial reporting that occurred during the first quarter of 2016.  Based on that evaluation, our CEO and CFO, or those persons performing similar functions, did not identify any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Important Considerations:

The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time. Because of these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reporting will be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management.

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PART II - OTHER INFORMATION

Item 1.   Legal Proceedings  

None

Item 1A.  Risk Factors

Not applicable for smaller reporting company.

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

None

Item 3.   Defaults Upon Senior Securities

None

Item 4.  Mine Safety Disclosures

Not Applicable

Item 5.   Other Information

None

Item 6.   Exhibits

Exhibit 31* - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32* - Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS**   XBRL Instance Document

101.SCH**   XBRL Taxonomy Extension Schema Document

101.CAL**   XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF**   XBRL Taxonomy Extension Definition Linkbase Document

101.LAB**   XBRL Taxonomy Extension Label Linkbase Document

101.PRE**   XBRL Taxonomy Extension Presentation Linkbase Document

*  Filed herewith

**XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

18

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: August 15, 2016

ORIGINAL SOURCE MUSIC, INC.

By:     /s/Lecia L. Walker

Lecia L. Walker

Chief Executive Officer, Chief Financial Officer

19

EX-31

Exhibit 31

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Item 307 of Regulation S-K

I, Lecia Walker, certify that:

1.

I have reviewed this Form 10-Q of Original Source Music, Inc. for the period ended June 30, 2016;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/: Lecia Walker

Lecia Walker

Chief Executive Officer

Chief Financial Officer

August 15, 2016

EX-32

Exhibit 32

CERTIFICATION PURSUANT

Section 1350 Certification as adopted pursuant to

Section 906 of the SARBANES-OXLEY ACT OF 2002

The undersigned officer of Original Source Music, Inc. (the "Company"), hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2016 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 15, 2016

By: /s/ Lecia Walker

            Lecia Walker

            Chief Executive Officer

            Chief Financial Officer

XML

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016	Jun. 30, 2015
Document and Entity Information:
Entity Registrant Name	Original Source Music, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Trading Symbol	osmu
Amendment Flag	false
Entity Central Index Key	0001639836
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		5,073,000
Entity Public Float			$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2

XML

Original Source Music, Inc. - Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 4,277	$ 1,838
Total current assets	4,277	1,838
Total Assets	4,277	1,838
Current liabilities:
Accrued liabilities and accounts payable	100	5,802
Accrued interest to a related party	873	400
Current convertible notes payable - related party, net of debt discount	20,122	13,619
Total current liabilities	21,095	19,821
Long-Term Liabilities:
Long-term convertible notes payable - related party, net of debt discount	712	0
Total Long-Term Liabilities	712	0
Total Liabilities	21,807	19,821
Stockholders' Deficit:
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.001 par value; 45,000,000 shares authorized; 5,073,000 shares issued and outstanding	5,073	5,073
Additional paid-in capital	34,061	18,444
Accumulated deficit	(56,664)	(41,500)
Total stockholders' deficit	(17,530)	(17,983)
Total Liabilities and Stockholders' Deficit	$ 4,277	$ 1,838

XML

Original Source Music, Inc. - Balance Sheets (Parentheticals)(USD $) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	5,073,000	5,073,000
Common stock, shares outstanding	5,073,000	5,073,000

XML

Original Source Music, Inc. - Condensed Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement
Revenue	$ 91	$ 300	$ 193	$ 413
Operating Expenses
General and administrative	130	123	255	247
Professional fees	7,114	0	7,414	9,000
Total Operating Expenses	7,244	123	7,669	9,247
Income from Operations	(7,153)	177	(7,476)	(8,834)
Interest (Expense) to a related party	(3,438)	(3,697)	(7,688)	(5,395)
Income (Loss) before Provision for Income Taxes	(10,591)	(3,520)	(15,164)	(14,229)
Income Tax Provisions	0	0	0	0
Net Income (Loss)	$ (10,591)	$ (3,520)	$ (15,164)	$ (14,229)
Net loss per common share basic and diluted	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted	5,073,000	5,073,000	5,073,000	5,073,000

XML

Original Source Music, Inc. - Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (15,164)	$ (14,229)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of debt discount	7,215	5,395
Accrued interest to a related party	473	0
Movement in operating assets and liabilities:
Accrued expenses	(5,702)	(3,000)
Net cash (used in) provided by operating activities	(13,178)	(11,834)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances under convertible notes payable - related party	15,617	12,000
Net cash provided by financing activities	15,617	12,000
Net change in cash	2,439	166
Cash - beginning of period	1,838	205
Cash - end of period	4,277	371
Supplemental cash flow information
Interest	0	0
Income taxes	0	0
Non-cash Activities
Beneficial conversion feature	$ 0	$ 0

XML

Note 1: Organization, Operations and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Notes

Note 1: Organization, Operations and Summary of Significant Accounting Policies

NOTE 1: ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Original Source Music, Inc. (“the Company”, “we”, “us” or “our’) was incorporated in the State of Nevada on August 20, 2009 ("Inception"). The Company licenses songs to the television and music industry for use in television shows or movies. The Company has had limited activity and revenue to date.

Basis of Preparation of Financial Statements

The accompanying financial statements of Original Source Music, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016.  For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 included in our registration statement filed with the SEC.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as of June 30, 2016 or December 31, 2015.

Basic and Diluted Earnings (Loss) Per Share

The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period.  Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive.  During the three and six months ended June 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding.  However, the shares potentially issuable under these notes have been excluded from the calculation of loss per share as the inclusion of such shares would have been anti-dilutive as the Company recognized a loss during the three and six months ended June 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and six months ended June 30, 2016.

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

XML

Note 2: Going Concern

6 Months Ended

Jun. 30, 2016

Notes

Note 2: Going Concern

NOTE 2: GOING CONCERN

The unaudited financial statements for the three and six months ended June 30, 2016 have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has suffered a loss from operations and has negative cash flows from operations, and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. 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, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of licensing songs to the television and music industry for use in television shows or movies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

XML

Note 3: Convertible Notes Payable - Related Party

6 Months Ended

Jun. 30, 2016

Notes

Note 3: Convertible Notes Payable - Related Party

NOTE 3: CONVERTIBLE NOTES PAYABLE – RELATED PARTY

	June 30, 2016	June 30, 2015
Convertible Note A
Principal	3255	3255
Debt discount	0	-1860
Convertible Note B
Principal	6000	6000
Debt discount	0	-3500
Convertible Note C
Principal	6000	6000
Debt discount	0	-4500
Convertible Note D
Principal	3260	0
Debt discount	-1304	0
Convertible Note E
Principal	1500	0
Debt discount	-794	0
Convertible Note F
Principal	5703	0
Debt discount	-3802	0
Convertible Note G
Principal	7114	0
Debt discount	-6402	0
Convertible Note H
Principal	2500	0
Debt discount	-2212	0
Convertible Note I
Principal	300	0
Debt discount	-284	0
Total convertible notes payable - non related party, net of debt discount	20834	5395

Convertible Note A:

On December 31, 2014 a related party loaned the Company $3,255. The note is interest free until June 30, 2015 after which time it’ll bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $3,255 as of June 30, 2016 and matured on February 28, 2016 but was extended to December 31, 2016. The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $3,255. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note B:

On January 21, 2015 a related party loaned the Company $6,000. The note is interest free until June 30, 2015 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $6,000 as of June 30, 2016 and matured on January 30, 2016 but was extended to December 31, 2016.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $6,000.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note C:

On March 30, 2015 a related party loaned the Company $6,000. The note is interest free until August 31, 2015 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $6,000 as of June 30, 2016 and matured on March 30, 2016.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $6,000.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.  This note is currently in default.

Convertible Note D:

On September 14, 2015 a related party loaned the Company $3,260. The note is interest free until June 30, 2016 after which time it’ll bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $3,260 as of June 30, 2016 and matures on December 31, 2016. The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $3,260. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note E:

On November 6, 2015 a related party loaned the Company $1,500. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $1,500 as of June 30, 2016 and matures on December 31, 2016.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $1,500.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note F:

On February 16, 2016 a related party loaned the Company $5,703. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $5,703 as of June 30, 2016 and matures on March 31, 2017.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $5,703.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note G:

On May 6, 2016 a related party loaned the Company $7,114. The note is interest free until December 31, 2016 after which time it’ll bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $7,114 as of June 30, 2016 and matures on December 31, 2017. The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $7,114. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note H:

On May 20, 2016 a related party loaned the Company $2,500. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $2,500 as of June 30, 2016 and matures on June 13, 2017.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $2,500.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

Convertible Note I:

On June 13, 2016 a related party loaned the Company $300. The note is interest free until December 31, 2016 after which time it bears interest at 6%. The note is convertible at the option of the holder into shares of original Source Music, Inc. common stock.  The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $300 as of June 30, 2016 and matures on March 31, 2017.  The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded a beneficial conversion feature (capped at proceeds received) of $300.  Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the straight line interest rate method, over the life of the note.

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Note 4 - Spin-off

6 Months Ended

Jun. 30, 2016

Notes

Note 4 - Spin-off

NOTE 4 – SPIN-OFF

On February 5, 2014, the board of directors of Original Source Entertainment authorized the spin-off of the Company to shareholders of record as of February 25, 2014.  The spin-off was done in connection with a change of control of Original Source Entertainment.  Under the terms of the spin-off, the Company’s common shares, par value $0.001 per share, will be distributed on a pro-rata basis to each holder of Original Source Entertainment’s common shares on the record date without any consideration or action on the part of such holders, and the holders of Original Source Entertainment’s common shares as of the record date will become owners of 100 percent of our common shares.

On May 13, 2016, the spin-off was completed due to the satisfactory resolution of all comments from the Securities and Exchange Commission to the Form 10 and the Form 10’s effectiveness.

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Note 5: Income Taxes

6 Months Ended

Jun. 30, 2016

Notes

Note 5: Income Taxes

NOTE 5: INCOME TAXES

As of June 30, 2015 the Company had net operating loss carry forwards of approximately $23,781 that may be available to reduce future years’ taxable income through 2035. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $23,781 for Federal income tax reporting purposes are subject to annual limitations should a change in ownership occur.

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Note 6: Subsequent Events

6 Months Ended

Jun. 30, 2016

Notes

Note 6: Subsequent Events

NOTE 6: SUBSEQUENT EVENTS

In accordance with ASC 855-10, "Subsequent Events" the Company has analyzed its operations subsequent to June 30, 2016 to the date these financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than as disclosed above.

XML

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Basis of presentation (Policies)

6 Months Ended

Jun. 30, 2016

Policies

Basis of presentation

Original Source Music, Inc. (“the Company”, “we”, “us” or “our’) was incorporated in the State of Nevada on August 20, 2009 ("Inception"). The Company licenses songs to the television and music industry for use in television shows or movies. The Company has had limited activity and revenue to date.

Basis of Preparation of Financial Statements

The accompanying financial statements of Original Source Music, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2016.  For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2015 included in our registration statement filed with the SEC.

XML

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Income Tax (Policies)

6 Months Ended

Jun. 30, 2016

Policies

Income Tax

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company had no known material tax assets or liabilities as of June 30, 2016 or December 31, 2015.

XML

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Basic and Diluted Earnings (loss) Per Share (Policies)

6 Months Ended

Jun. 30, 2016

Policies

Basic and Diluted Earnings (loss) Per Share

Basic and Diluted Earnings (Loss) Per Share

The Company computes earnings (loss) per share in accordance with ASC 260-10-45 “Earnings per Share”, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic earnings (loss) per share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of outstanding common shares during the period.  Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period.  Dilutive earnings (loss) per share excludes all potential common shares if their effect is anti-dilutive.  During the three and six months ended June 30, 2016, the Company had certain potentially dilutive convertible notes payable related party issued and outstanding.  However, the shares potentially issuable under these notes have been excluded from the calculation of loss per share as the inclusion of such shares would have been anti-dilutive as the Company recognized a loss during the three and six months ended June 30, 2016. No potentially debt or equity instruments were issued and outstanding during the three and six months ended June 30, 2016.

XML

Note 1: Organization, Operations and Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2016

Policies

Recent Accounting Pronouncements

Recent Accounting Pronouncements

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

XML

Note 3: Convertible Notes Payable - Related Party: Schedule of Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2016

Tables/Schedules

Schedule of Related Party Transactions

	June 30, 2016	June 30, 2015
Convertible Note A
Principal	3255	3255
Debt discount	0	-1860
Convertible Note B
Principal	6000	6000
Debt discount	0	-3500
Convertible Note C
Principal	6000	6000
Debt discount	0	-4500
Convertible Note D
Principal	3260	0
Debt discount	-1304	0
Convertible Note E
Principal	1500	0
Debt discount	-794	0
Convertible Note F
Principal	5703	0
Debt discount	-3802	0
Convertible Note G
Principal	7114	0
Debt discount	-6402	0
Convertible Note H
Principal	2500	0
Debt discount	-2212	0
Convertible Note I
Principal	300	0
Debt discount	-284	0
Total convertible notes payable - non related party, net of debt discount	20834	5395

XML

Note 3: Convertible Notes Payable - Related Party: Schedule of Related Party Transactions (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Details
Convertible Note A Principal	$ 3,255	$ 3,255
Convertible Note A Debt Discount	0	(1,860)
Convertible Note B Principal	6,000	6,000
Convertible Note B Debt Discount	0	(3,500)
Convertible Note C Principal	6,000	6,000
Convertible Note C Debt Discount	0	(4,500)
Convertible Note D Principal	3,260	0
Convertible Note D Debt Discount	(1,304)	0
Convertible Note E Principal	1,500	0
Convertible Note E Debt Discount	(794)	0
Convertible Note F Principal	5,703	0
Convertible Note F Debt Discount	(3,802)	0
Convertible Note G Principal	7,114	0
Convertible Note G Debt Discount	(6,402)	0
Convertible Note H Principal	2,500	0
Convertible Note H Debt Discount	(2,212)	0
Convertible Note I Principal	300	0
Convertible Note I Debt Discount	(284)	0
Total convertible notes payable - non related party, net of debt discount	$ 20,834	$ 5,395

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Note 5: Income Taxes (Details)	Jun. 30, 2015 USD ($)
Details
Net operating loss carry forwards	$ 23,781