Hollywall Entertainment : Audited Financial Statements 2018 and 2019

HOLLYWALL ENTERTAINMENT, INC.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDING 12/31/2019 and 12/31/2018 Restated

TABLE OF CONTENTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	1
RESTATED CONSOLIDATED BALANCE SHEETS	2
RESTATED CONSOLIDATED STATEMENTS OF OPERATIONS	3
RESTATED CONSOLIDATED STATEMENTS OF CASH FLOWS	4
RESTATED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY	5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	6

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Hollywall Entertainment, Inc

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Hollywall Entertainment, Inc (the Company) as of December 31, 2019 and 2018, and the related consolidated statements of operations, changes in stockholders' deficit and cash flows for each of the years in the two-year period ended December 31, 2019, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Emphasis of Matters

As discussed in Note 2 to the financial statements, during the 2020 audit, certain errors were discovered in the 2019 and 2018 financial statements, which have been restated in the accompanying financial statements. These adjustments have been audited by us and this opinion is not modified with respect to this matter; however, the opinion dated March 23, 2021 and the related financial statements should not longer be relied upon.

Substantial Doubt about the Company's Ability to Continue as a Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 6, the Company has incurred net losses and negative cash flow from operations since inception. These factors, and the need for additional financing in order for the Company to meet its business plans raises substantial doubt about the Company's ability to continue as a going concern. Our opinion is not modified with respect to that matter.

We have served as the Company's auditor since 2020.

Tampa, Florida

February 11, 2022

3001 N. Rocky Point Dr., Suite 200 i Tampa, Florida 33607 i 813.367-3527

Hollywall Entertainment, Inc. and Subsidiaries

Consolidated Balance Sheets

Restated

			As of
ASSETS		12/31/2019			12/31/2018
Current Assets
Cash and Cash Equivalents	$	3,945	$	160,923
Prepaid Expenses		3,197,000			911,000
Total Current Assets		3,200,945			1,071,923
Property and Equipment, net
Vehicles, net		70,476			91,171
Total Property and Equipment, net		70,476			91,171
Other Non Current Assets
Intangibles, net		26,055,556			30,522,222
Total Other Non Current Assets		26,055,556			30,522,222
TOTAL ASSETS	$	29,326,977		$	31,685,316
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Accounts Payable	$	52,207	$	17,470
Accrued Expenses		621,059			691,392
Convertible Notes Payable		588,750			588,750
Total Current Liabilities		1,262,016			1,297,612
TOTAL LIABILITIES		1,262,016			1,297,612
Commitments and Contingencies (Note 12)
STOCKHOLDERS' EQUITY
Preferred Stock, $0.001 par value, 200,000 shares
authorized, 99,391 issued and outstanding		99			99
Common Stock, $0.001 par value; 300,000,000 shares
authorized, 71,325,284 and 15,041,320 issued and
outstanding at December 31, 2019 and 2018, respectively		71,325			15,041
Common Stock to be Issued		2,068,250			14,251,206
Additional Paid-In Capital		65,650,885			50,637,063
Accumulated Deficit		(39,725,598)			(34,515,705)
Total Stockholders' Equity		28,064,961			30,387,704
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	29,326,977		$	31,685,316

THE ACCOMPANYING FOOTNOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS

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Hollywall Entertainment, Inc. and Subsidiaries

Consolidated Statements of Operations

Restated

		For the years ending
		12/31/2019			12/31/2018
REVENUE
Music Licensing Income	$	21,760	$	3,251
Lobbying Income		180,000			-
TOTAL REVENUE		201,760			3,251
OPERATING EXPENSES
Amortization Expense		4,466,667			4,466,667
Executive Management Compensation		475,000			475,000
General and Administrative Expenses		380,698			248,507
Professional Fees		38,906			175,407
Depreciation Expense		20,695			4,726
TOTAL OPERATING EXPENSES		5,381,966			5,370,307
Loss from Operations		(5,180,206)			(5,367,056)
Other Expenses
Interest Expense		(29,687)			(25,045)
		(5,209,893)			(5,392,101)
Provision for income taxes		-			-
Net Loss	$	(5,209,893)		$	(5,392,101)
Basic and diluted loss per share	$	(0.11)	$	(0.40)
Weighted average number of shares outstanding, basic and diluted		47,746,988			13,612,161

THE ACCOMPANYING FOOTNOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS

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