[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Utah
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20-8980078
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(State or Other Jurisdiction of
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(I.R.S. Employer I.D. No.)
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incorporation or organization)
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Large accelerated filer [ ]
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Accelerated filer [ ]
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Non-accelerated filer [ ]
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Smaller reporting company [X]
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Class
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Outstanding as of November 9, 2011
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Common Capital Voting Stock, $0.01 par value per share
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2,345,000 shares
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Condensed Balance Sheets
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3
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Condensed Statements of Operations
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4
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Condensed Statements of Cash Flows
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5
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Notes to Condensed Financials Statements
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6
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9/30/2011
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6/30/2011
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|||||||
(Unaudited) | (Audited) | |||||||
ASSETS
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||||||||
Assets
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||||||||
Current Assets
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||||||||
Cash
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$ | 92 | $ | 99 | ||||
Accounts Receivable
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1,019 | 1,019 | ||||||
Prepaid Expenses
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- | - | ||||||
Total current assets
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1,111 | 1,118 | ||||||
Film Costs
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12,412 | 12,412 | ||||||
Total Assets
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$ | 13,523 | $ | 13,530 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
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||||||||
Liabilities
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||||||||
Current Liabilities
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||||||||
Accounts Payable
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$ | 7,812 | $ | 2,650 | ||||
Accrued Liabilities - related party
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18,126 | 17,474 | ||||||
Income Taxes Payable
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100 | 100 | ||||||
Total Current Liabilities
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26,038 | 20,224 | ||||||
Long Term Liabilities
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||||||||
Note Payable - Shareholder
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50,779 | 45,889 | ||||||
Total Long Term Liabilities
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50,779 | 45,889 | ||||||
Total Liabilities
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76,817 | 66,113 | ||||||
Stockholders' Deficit
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||||||||
Preferred Stock - 5,000,000 shares
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- | - | ||||||
authorized at $0.01 par; 0 shares
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||||||||
issued and outstanding (Series A
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||||||||
Convertible)
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||||||||
Common Stock - 50,000,000 shares
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||||||||
authorized at $0.01 par; 2,345,000 and
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||||||||
2,345,000 shares issued and outstanding, respectively
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23,450 | 23,450 | ||||||
Additional Paid-in Capital
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123,762 | 123,762 | ||||||
Deficit Accumulated during the development stage
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(210,506 | ) | (199,795 | ) | ||||
Total Stockholders' Deficit
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(63,294 | ) | (52,583 | ) | ||||
Total Liabilities and Stockholders' Deficit
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$ | 13,523 | $ | 13,530 |
For the
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For the
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|||||||||||
Three Months
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Three Months
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Since Inception
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||||||||||
Ended
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Ended
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through
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||||||||||
9/30/2011
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9/30/2010
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9/30/2011
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||||||||||
Revenues
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$ | - | - | $ | 1,019 | |||||||
Cost of Revenues
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- | - | 1,019 | |||||||||
Gross Profit
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- | - | - | |||||||||
Operating Expenses
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||||||||||||
Professional Expenses
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9,281 | 5,627 | 84,097 | |||||||||
SG&A
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232 | 1,863 | 30,739 | |||||||||
Impairment of unamortized film -
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||||||||||||
development costs
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- | - | 86,717 | |||||||||
Total Operating Expenses
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9,513 | 7,490 | 201,553 | |||||||||
Net Loss from Operations
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(9,513 | ) | (7,490 | ) | (201,553 | ) | ||||||
Interest Income
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- | - | - | |||||||||
Interest Expense - Related Party
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(1,198 | ) | (644 | ) | (8,453 | ) | ||||||
Net Loss Before Income Taxes
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(10,711 | ) | (8,134 | ) | (210,006 | ) | ||||||
Provision for Income Taxes
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- | - | 500 | |||||||||
Net Loss
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$ | (10,711 | ) | $ | (8,134 | ) | $ | (210,506 | ) | |||
Loss Per Share - Basic and Diluted
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$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.11 | ) | |||
Basic and Diluted Weighted
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||||||||||||
Average Shares Outstanding
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2,345,000 | 2,345,000 | 1,931,518 |
For the
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For the
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|||||||||||
Three Months
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Three Months
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Since Inception
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||||||||||
Ended
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Ended
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through
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||||||||||
9/30/2011
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9/30/2010
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9/30/2011
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||||||||||
Cash Flows from Operating Activities
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||||||||||||
Net Loss
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$ | (10,711 | ) | $ | (8,134 | ) | $ | (210,506 | ) | |||
Adjustments to reconcile net loss to net cash
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||||||||||||
Provided by/(Used in) by Operating Activities:
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||||||||||||
Issued Common Stock in Exchange for Payment of Expenses | - | - | 5,212 | |||||||||
Impairment of capitalized film development costs
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- | - | 86,717 | |||||||||
Additions to Capitalized Film Costs
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- | - | (100,149 | ) | ||||||||
Amortization of Film Costs
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- | - | 1,019 | |||||||||
(Increase)/Decrease in Accounts Receivable
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- | - | (1,019 | ) | ||||||||
(Increase)/Decrease in Prepaid Expenses
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- | 625 | - | |||||||||
Increase/(Decrease) in Accounts Payable
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5,162 | 3,478 | 7,812 | |||||||||
Increase/(Decrease) in Accrued Liabilities - related party
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652 | 225 | 18,126 | |||||||||
Increase/(Decrease) in Income Taxes Payable
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- | - | 100 | |||||||||
Accrued Interest included in Notes Payable Balance
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1,198 | 644 | 8,453 | |||||||||
Net Cash Used in Operating Activities
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(3,699 | ) | (3,162 | ) | (184,235 | ) | ||||||
Cash Flows from Financing Activities
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||||||||||||
Proceeds from Loan from Shareholder
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3,692 | 2,549 | 62,327 | |||||||||
Payments on Loan from Shareholder
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- | - | (20,000 | ) | ||||||||
Issued Common Stock for Cash
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- | - | 52,000 | |||||||||
Issued Preferred Stock for Cash
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- | - | 90,000 | |||||||||
Net Cash from Financing Activities
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3,692 | 2,549 | 184,327 | |||||||||
Net Increase (Decrease) in cash
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(7 | ) | (613 | ) | 92 | |||||||
Beginning Cash Balance
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99 | 830 | - | |||||||||
Ending Cash Balance
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$ | 92 | $ | 217 | $ | 92 | ||||||
Supplemental Schedule of Cash Flow Activities
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||||||||||||
Cash paid for
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||||||||||||
Interest
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$ | - | $ | - | $ | - | ||||||
Income taxes
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$ | - | $ | - | $ | 400 | ||||||
Common Stock Issued in Exchange for Payment of Expenses
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$ | - | $ | - | $ | 5,212 |
For the three months | For the twelve months | |||||||
September 30, 2011
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June 30, 2011
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|||||||
Opening Balance
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$ | 12,412 | $ | 24,825 | ||||
Additions
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- | - | ||||||
12,412 | 24,825 | |||||||
Amortization
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-
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(1,019 | ) | |||||
Impairment
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- | (11,394 | ) | |||||
Ending Balance
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$ | 12,412 | $ | 12,412 | ||||
Development/Preproduction
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- | - | ||||||
Production
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- | - | ||||||
Completed not released
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- | - | ||||||
Completed released
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12,412 | 12,412 | ||||||
$ | 12,412 | $ | 12,412 |
Date:
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November 14, 2011
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By:
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/s/James Doolin
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James Doolin, Principal Financial Officer / President & Director
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Date:
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November 14, 2011
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By:
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/s/Shane Thueson
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Shane Thueson, Principal Executive Officer, Vice President & Director
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Date:
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November 14, 2011
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By:
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/s/James Doolin
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James Doolin
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||||
Principal Financial Officer / President
& Director
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Date:
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November 14, 2011
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By:
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/s/Shane Thueson
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Shane Thueson, Principal Executive Officer, Vice President & Director
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Date:
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November 14, 2011
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By:
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/s/James Doolin
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James Doolin
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||||
Principal Financial Officer,
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||||
President & Director
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||||
Date:
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November 14, 2011
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By:
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/s/Shane Thueson
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Shane Thueson
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||||
Principal Executive Officer,
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||||
Vice President & Director
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Condensed Balance Sheets[Parenthetical] (USD $) | Sep. 30, 2011 | Jun. 30, 2011 |
---|---|---|
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 2,345,000 | 2,345,000 |
Common stock, shares outstanding | 2,345,000 | 2,345,000 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Statements of Operations (USD $) | 3 Months Ended | 53 Months Ended | |
---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | |
Revenues | $ 0 | $ 0 | $ 1,019 |
Cost of Revenues | 0 | 0 | 1,019 |
Gross Profit | 0 | 0 | 0 |
Operating Expenses | |||
Professional Expenses | 9,281 | 5,627 | 84,097 |
SG & A | 232 | 1,863 | 30,739 |
Impairment of unamortized film - development costs | 0 | 0 | 86,717 |
Total Operating Expenses | 9,513 | 7,490 | 201,553 |
Net Loss from Operations | (9,513) | (7,490) | (201,553) |
Interest Income | 0 | 0 | 0 |
Interest Expense - Related Party | (1,198) | (644) | (8,453) |
Net Loss Before Income Taxes | (10,711) | (8,134) | (210,006) |
Provision for Income Taxes | 0 | 0 | 500 |
Net Loss | $ (10,711) | $ (8,134) | $ (210,506) |
Loss Per Share - Basic and Diluted (in dollars share) | $ (0.01) | $ (0.01) | $ (0.11) |
Basic and Diluted Weighted Average Shares Outstanding (in shares) | 2,345,000 | 2,345,000 | 1,931,518 |
/10H(J.@YE"H`II118Q9F7*?NY+#B M$$4XJ0RG(.3<79>0"TTD!'WVP8QQ[4B481`ZC6:HC,6&6`JLQN^3T$_"[0K< ME1CO$_01NF&VL_ZT2QDF>4K"`9?&UE9(I,QV-1W^BKSVB7B#T5\(P'&+LP`8 M>N1 $?;/X<6] ML)P]/.Y%L+'*L]?V./^V- 2\&_)[Z;&`XN:K M-J*]R6$/_-N*@=?R'"/P\`)_2225_>F@X%*>338)]C"_T]LEE7[(92(`'RZ; M(V_D]+O.8-@9=7KCYMCK]PXOM-?T:T(#/#C,.%X0'Y(++@VDGV\/Z^'MYK M[X];K^V-/[M7?:]WY;3ZO59G>(`!'L(=L`2&X/-9:F$:7 VC?KX=VV/FS MT[OMX/]6_ZKG'>:Z;9N #W;7N[[!0(_&!Q@[3!OZYNB;F@YF MYX'@#(=^>E[(,TPICSW*C >_U' M5R2','5,J>],5R`N:I)&<:A+A.;=W-1B=$&AGM<,OJ!+1P]1F+-HR25%1S-K MZU'(%. 2D2A7`\@RL* [.K+V*3RO.VY>&\/1LF*&!/2$"^4P:[%N6P4^;4)<<]^(*8'HIWJ.J^M7 M]<:;^DGCZ$$&J6$[Z%]XM*/^'+>;?GM7HZ+F'*!5OJV@K+2WL$6GT6<%NA`J MF;^I+T55];JD5E]FBP66C?>PP=;^J&)$$9<_[&.&K9M2R8XB&TAR4;/9 \*FD.P>9T6[:G^I35DE& MH1`K*)V13G42;+S;QX**J;"@7>VKN;P55M6:HI3.4LANQI4V3:NLBARC!WNL MB W$W(SCKE=B1_=#!&%+>?&M.I!(DK^GJX]B7:NSIF<[\ M_N`,W^&=RU,0Z?M&S2$9UT5-B42?^`P7GK$H#\8&%R0B*VTR&N)A5)_14EZ9 M()BJ1%.O!$_B7`E%\>B=L^'>".6";+8X[IIXBD-9`SQ;`NX9P4AQ_[\;B"8@ M"@Y6!:0NIHWBLX!'A#*;CU,2RA_NY-9>DF4"*_"^G-G["^ALCBFVB7-!9M#B M4<39:(YFRWZB]!E8_YI'%[]]7)!M&B8J[VH:9[\3OQ(`P_W3IM:+8D)%WDF) MJ2(A_0:!KA&UX0Y"'FM:H7ID_-X)5?06PP.*B,?O]#>E3=(EA@284/4<46@& M@;E=RS%? XN8VCE F?H*XA'EI7TYN))F4#@L0Y>*0B;09<+ M]"3]CO/2?"$<.R-?P^)?=-NN"MTVRT;V!-_+V<06AO9%T=1E<7D,#^HRQ$FT M>5K'`:\'_4$L!`AX# M%`````@`#X1N/U/_&A)U'0``K2(!`!$`&````````0```*2!`````&9H9W(M M,C`Q,3`Y,S`N>&UL550%``/MB,%.=7@+``$$)0X```0Y`0``4$L!`AX#%``` M``@`#X1N/[,OA.:O!@``35T``!4`&````````0```*2!P!T``&9H9W(M,C`Q M,3`Y,S!?8V%L+GAM;%54!0`#[8C!3G5X"P`!!"4.```$.0$``%!+`0(>`Q0` M```(``^$;C^H>6_Y1`P``+BQ```5`!@```````$```"D@;XD``!F:&=R+3(P M,3$P.3,P7V1E9BYX;6Q55`4``^V(P4YU>`L``00E#@``!#D!``!02P$"'@,4 M````"``/A&X_HSR\'WP<``!DA`$`%0`8```````!````I(%1,0``9FAG &UL550%``/MB,%.=7@+``$$)0X```0Y`0``4$L!`AX# M%`````@`#X1N/V0#N\>I#@``^.(``!4`&````````0```*2!'$X``&9H9W(M M,C`Q,3`Y,S!?<')E+GAM;%54!0`#[8C!3G5X"P`!!"4.```$.0$``%!+`0(> M`Q0````(``^$;C]2.%HH^@8``"\M```1`!@```````$```"D@11=``!F:&=R M+3(P,3$P.3,P+GAS9%54!0`#[8C!3G5X"P`!!"4.```$.0$``%!+!08````` ..!@`&`!H"``!99``````` ` end
Document And Entity Information | 3 Months Ended | |
---|---|---|
Sep. 30, 2011 | Nov. 09, 2011 | |
Entity Registrant Name | 4th Grade Films Inc | |
Entity Central Index Key | 0001400683 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | fhgr | |
Entity Common Stock, Shares Outstanding | 2,345,000 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2011 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2012 |
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REVENUE RECOGNITION | 3 Months Ended |
---|---|
Sep. 30, 2011 | |
Revenue Recognition [Abstract] | |
Revenue Recognition Disclosure [Text Block] | NOTE 3 REVENUE RECOGNITION
The Company recognizes revenue from the distribution of its films when earned and reported to it by its distributor, Vanguard International Cinema. The Company recognizes revenues derived from its feature films net of reserves for returns, rebates and other incentives after the distributor has retained a distribution fee as a percentage of revenue.
Because a third party is the principal distributor of the Company’s films, the amount of revenue that is recognized from films in any given period is dependent on the timing, accuracy and sufficiency of the information received from the distributor. As is typical in the film industry, the distributor may make adjustments in future periods to information previously provided to the Company that could have a material impact on the Company’s operating results in later periods. Furthermore, management may, in its judgment, make material adjustments in future periods to the information reported by the distributor to ensure that revenues are accurately reflected in the Company’s financial statements. To date, the distributor has not made subsequent, nor has the Company made, material adjustments to information provided by the distributor and used in the preparation of the Company’s historical financial statements. |
BASIS OF PRESENTATION | 3 Months Ended |
---|---|
Sep. 30, 2011 | |
Accounting Policies [Abstract] | |
Basis Of Presentation [Text Block] | NOTE 1 BASIS OF PRESENTATION
The accompanying financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The interim financial statements reflect all adjustments, consisting of normal recurring adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the period.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2011. The results of operations for the period ended September 30, 2011, are not necessarily indicative of the operating results for the full year. |
DIRECTOR COMPENSATION EXPENSES / RELATED PARTY TRANSACTIONS | 3 Months Ended |
---|---|
Sep. 30, 2011 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 4 DIRECTOR COMPENSATION EXPENSES / RELATED PARTY TRANSACTIONS
Effective April 1, 2008, the directors resolved to suspend payment of $1,000 per year to each member of the board of directors. The Compensation was paid semi-annually, with the first $500 payment made on October 1, 2007 and the subsequent $500 payment paid on March 1, 2008. The payment to the Directors will be reinstated once the Company generates positive operating cash flow.
As of September 30, 2011, James Doolin, the Company's President and director, loaned the Company an aggregate of $35,764 on an unsecured line of credit. The total funding available to the Company under the line of credit is $50,000. The line accrues interest at 10% per annum and matures on December 31, 2014. As of September 30, 2011, the outstanding balance owed to the shareholder was $43,014 including accrued interest. For the three months ended September 30, 2011 the Company accrued interest of $1,007 on the line.
As of September 30, 2011, Michael Doolin, a shareholder of the Company, loaned the Company an aggregate of $6,563 on an unsecured line of credit. The total funding available to the Company under the line of credit is $50,000. The line accrues interest at 10% per annum and matures on December 31, 2014. As of September 30, 2011, the outstanding balance owed to the shareholder was $7,764, including accrued interest. For the three months ended September 30, 2011 the Company has accrued interest of $191 on the line.
As of September 30, 2011, approximately 77.9% of the Company's issued and outstanding common stock is controlled by one family giving them effective power to control the vote on substantially all significant matters without the approval of other stockholders.
The Company rents office space from the Company’s President at a cost of $75 per month. The Company has accrued $3,600 in unpaid rental fees from this arrangement. |
FILM COSTS | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Film Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Film Costs Disclosure [Text Block] | NOTE 5 FILM COSTS
Film costs consisted of the following as of September 30, 2011:
The Company did not recognize amortization of the film costs during the quarter ended September 30, 2011 as no revenues were derived during this period. The Company is unable to estimate the expected amortization over the next twelve months as international distribution is currently being evaluated. |
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
---|---|
Sep. 30, 2011 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 6 RECENT ACCOUNTING PRONOUNCEMENTS
Fair Value Measurement – In April 2011, the Financial Accounting Standards Board (“FASB”) issued new guidance to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. The Company does not believe the adoption of the new guidance will have an impact on its financial position, results of operations or cash flows.
Comprehensive Income – In June 2011, the FASB issued new guidance on the presentation of comprehensive income. Specifically, the new guidance allows an entity to present components of net income or other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. The Company does not believe the adoption of the new guidance will have an impact on its financial position, results of operations or cash flows.
The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements. |
LIQUIDITY/GOING CONCERN | 3 Months Ended |
---|---|
Sep. 30, 2011 | |
Liquidity Going Concern [Abstract] | |
Liquidity Disclosure [Text Block] | NOTE 2 LIQUIDITY/GOING CONCERN
The Company has accumulated losses since inception, has minimal assets, and has a net loss of $10,711 for the three months ended September 30, 2011. Because the Company has accumulated losses since inception, has minimal liquid current assets, and has limited sales activity there is substantial doubt about the Company's ability to continue as a going concern. Management plans include continuing to develop, finance, produce, market and distribute films within the independent film community. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |