NOTE 4. SPIN-OFF

On February 5, 2014, the board of directors of OSE authorized the spin-off of the Company’s wholly-owned subsidiary, Original Source Music Inc., to shareholders of record as of February 25, 2014. All of the Company’s assets and business operations at that time were held in Original Source Music, Inc. The spin-off was done in connection with a change of control of OSE. Under the terms of the spin-off, the Company’s common shares, par value $0.001 per share, were distributed on a pro-rata basis to each holder of OSE common shares on the record date without any consideration or action on the part of such holders, and the holders of OSE’s common shares as of the record date would 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 SEC to the Form 10 and the Form 10’s effectiveness.

The prior financial statements have been revised to reflect the completed spin-off.