-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GOLUPh7GwhIlYrJjDjJoPgMJd7DiwWNwrVoGqiGxKY+4jptwfFsYWnQIIuAWE4m+ +NgD2mG65YQrU4RzmBlNTQ== 0001013708-98-000126.txt : 19981217 0001013708-98-000126.hdr.sgml : 19981217 ACCESSION NUMBER: 0001013708-98-000126 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981031 FILED AS OF DATE: 19981216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KINGS ROAD ENTERTAINMENT INC CENTRAL INDEX KEY: 0000773588 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812] IRS NUMBER: 953587522 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-14234 FILM NUMBER: 98770671 BUSINESS ADDRESS: STREET 1: 1901 AVE OF THE STARS STE 1545 CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3105520057 MAIL ADDRESS: STREET 1: 1901 AVE OF THE STARS STREET 2: SUITE 1545 CITY: LOS ANGELES STATE: CA ZIP: 90067 10QSB 1 QUARTERLY REPORT U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended October 31, 1998 Commission File No. 0-14234 KINGS ROAD ENTERTAINMENT, INC. (Name of small business issuer in its charter) Delaware 95-3587522 (State or other jurisdiction (I.R.S. Employer of incorporation) Identification No.) 1901 Avenue of the Stars, Suite 1545 Los Angeles, California 90067 (Address of principal executive office) Issuer's telephone number: (310) 552-0057 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 ___ As of December 11, 1998 the registrant had 3,389,315 shares of its common stock outstanding. Transitional Small Business Disclosure Format: YES ___ NO X_ PART I - FINANCIAL INFORMATION Item 1 - Financial Statements KINGS ROAD ENTERTAINMENT, INC. BALANCE SHEET (UNAUDITED) AS OF OCT. 31, 1998 -------------------- ASSETS Cash and Cash Equivalents $2,456,168 Accounts Receivable, net of allowance of $10,000 396,959 Film Costs, net of amortization of $168,253,673 312,397 Prepaid Expenses 57,399 Fixed Assets 14,927 Other Assets 2,500 ------------------- TOTAL ASSETS $3,240,350 =========== LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Accounts Payable $127,209 Accrued Expenses 8,160 Deferred Revenue 8,400 ------------------- TOTAL LIABILITIES 143,769 COMMITMENTS AND CONTINGENCIES 0 SHAREHOLDERS' EQUITY Common Stock, $.01 par value, 12,000,000 shares authorized, 1,911,748 shares issued and outstanding at Oct. 31, 1998 51,040 Additional Paid-In Capital 21,085,278 Deficit (18,039,737) ------------------- TOTAL SHAREHOLDERS' EQUITY 3,096,581 ------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,240,350 =================== The accompanying notes are an integral part of this balance sheet. 2 KINGS ROAD ENTERTAINMENT, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS SIX MONTHS ENDED OCTOBER 31, ENDED OCTOBER 31, 1998 1997 1998 1997 ----------- ---------- ---------- ------------ REVENUES Feature Films $72,247 $313,147 $222,164 $671,062 Interest Income 34,452 34,214 66,699 94,520 --------- ---------- ---------- ---------- 106,699 347,361 288,863 765,582 COSTS AND EXPENSES Costs Related to Revenue 1,500 265,990 8,857 302,497 Selling Expenses 21,008 18,533 29,473 22,535 General & Administrative Expenses 167,324 235,702 312,587 498,971 --------- ---------- ----------- ---------- 189,832 520,225 350,917 824,003 --------- ---------- ----------- ---------- LOSS BEFORE INCOME TAXES (83,133) (172,864) (62,054) (58,421) Provision for Income Taxes 174 725 (18,940) 822 --------- ---------- ----------- ---------- NET LOSS ($83,307) ($173,589) ($43,114) ($59,243) ========= ========= ========= ========= Net Loss Per Share - Basic ($0.04) ($0.09) ($0.02) ($0.03) ========= ========= ========= ========= Weighted Average Number of Common Shares - Basic 1,911,748 1,884,141 1,911,748 1,839,776 ========= ========= ========= ========= Net Loss Per Share - Diluted ($0.04) ($0.09) ($0.02) ($0.03) ========= ========= ========= ========= Weighted Average Number of Common Shares and Common Share Equivalents - Diluted 1,916,715 1,914,071 1,939,733 1,886,718 ========= ========= ========= =========
The accompanying notes are an integral part of these statements. 3 KINGS ROAD ENTERTAINMENT, INC. STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
Common Common Additional Retained Total Stock Stock Paid-In Earnings/ Shareholders' Shares Amount Capital (Deficit) Equity ------------------ ------------------ ------------------ ------------------ ------------------- Balance, April 30, 1997 1,706,581 $45,716 $24,902,177 ($18,035,440) $6,912,453 Exercise of Stock Options 205,167 5,324 139,797 ----- 145,121 Distribution to Shareholders ----- ----- (3,956,696) ----- (3,956,696) Net Income ----- ----- ----- 38,817 38,817 ----------------- ----------------- ----------------- ----------------- ----------------- Balance, April 30, 1998 1,911,748 51,040 21,085,278 (17,996,623) 3,139,695 Net Loss ----- ----- ----- (43,114) (43,114) ----------------- ----------------- ----------------- ----------------- ----------------- Balance, Oct. 31, 1998 1,911,748 $51,040 $21,085,278 ($18,039,737) $3,096,581 ========== ========== =========== ============= ==========
The accompanying notes are an integral part of these statements. 4 KINGS ROAD ENTERTAINMENT, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED OCT. 31, 1998 1997 ------------------ ------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net Loss ($43,114) ($59,243) Adjustments to reconcile Net Loss to Net Cash Provided by Operating Activities: Depreciation and Amortization 12,974 305,704 Changes in Assets and Liabilities: Increase in Accounts Receivable (23,496) (31,486) Increase in Prepaid Expenses (9,558) (34,093) Decrease in Accounts Payable (105,958) (93,631) Decrease in Accrued Expenses (6,840) 0 Decrease in Income Taxes Payable 0 (3,482) Decrease in Deferred Revenue (1,200) (12,100) ------------------ ------------------- NET CASH AND CASH EQUIVALENTS (USED IN)/ PROVIDED BY OPERATING ACTIVITIES (177,192) 71,669 CASH FLOWS FROM INVESTING ACTIVITIES: Sale of Marketable Securities 0 3,610,914 (Purchase)/Disposal of Fixed Assets (4,560) 4,359 Gross Additions to Film Costs (20,580) (97,737) ------------------ ------------------- NET CASH AND CASH EQUIVALENTS (USED IN)/ PROVIDED BY INVESTING ACTIVITIES (25,140) 3,517,536 CASH FLOWS FROM FINANCING ACTIVITIES: Exercise of Stock Options 0 145,121 Distribution to Shareholders 0 (3,956,696) ------------------ ------------------- NET CASH AND CASH EQUIVALENTS USED IN FINANCING ACTIVITIES 0 (3,811,575) ------------------ ------------------- NET DECREASE IN CASH AND CASH EQUIVALENTS (202,332) (222,370) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,658,500 248,204 ------------------ ------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,456,168 $25,834 ================== ===================
The accompanying notes are an integral part of these statements. 5 KINGS ROAD ENTERTAINMENT, INC. NOTES TO FINANCIAL STATEMENTS NOTE A - BASIS OF PRESENTATION The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements. Accordingly, they do not include all of the information and disclosures required for annual financial statements. These financial statements should be read in conjunction with the financial statements and related footnotes for the year ended April 30, 1998, included in the Kings Road Entertainment, Inc. ("Company" or "Registrant") annual report on Form 10-KSB for that period. In the opinion of the Company's management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company's financial position as of October 31, 1998 and the results of operations and cash flows for the three and six month periods ended October 31, 1998 and 1997 have been included. The results of operations for the three and six month periods ended October 31, 1998 are not necessarily indicative of the results to be expected for the full fiscal year. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-KSB for the year ended April 30, 1998. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company has adopted Statement of Financial Accounting Standard No. 128, Earnings Per Share ("SFAS No. 128"), which became effective for financial statements issued for periods ending after December 15, 1997. In accordance with SFAS No. 128, prior year earnings per share ("EPS") amounts have been restated. SFAS No. 128 was issued to simplify the standards for calculating EPS previously set forth in Accounting Principles Board No. 15, Earnings Per Share. SFAS No. 128 replaces the presentation of primary EPS with basic EPS. The new rules also require dual presentation of basic and diluted EPS on the face of the statements of operations. In April 1998, the Company effected a 1-for-3 reverse stock split for shareholders of record on April 17, 1998. All share and per share data in the financial statements reflect the reverse stock split for all periods presented. NOTE B - FILM COSTS Film costs consist of: As Of Oct. 31, 1998 ------------- Released Films, less amortization $202,660 Films in Production 0 Films in Development 109,737 -------- $312,397 ======== 6 KINGS ROAD ENTERTAINMENT, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE C - LITIGATION AND CONTINGENCIES In the ordinary course of business, the Company has or may become involved in disputes or litigation. On the basis of information available to it, management believes such contingencies will not have a materially adverse impact on the Company's financial position or results of operations. NOTE D - STOCK OPTIONS The Company's 1998 Stock Option Plan ("1998 Plan") provides for the grant of options to purchase up to 400,000 shares of the Company's common stock. At October 31, 1998 Options to purchase up to 100,667 shares were outstanding under the 1998 Plan at an exercise price of $1.22 per share. Of the outstanding options, 66,667 were held by the Company's then Chief Executive Officer and 34,000 were held by another officer of the Company. On November 6, 1998, in connection with a November 6, 1998 Stock Acquisition Agreement ("Acquisition Agreement"), all of the outstanding options under the 1998 Plan were canceled. For such cancellation, the option holders received, in the aggregate, the sum of $113,754, representing the difference between $2.35, the per share purchase price under the Acquisition Agreement, and the exercise price of $1.22 times the number of outstanding options. (See "Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Recent Developments") The Company has elected to follow Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees ("APB 25"), and related interpretations in accounting for its employee stock options because the alternative fair value accounting method provided for under Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation, requires the use of valuation models that were not developed for use in valuing employee stock options. Under APB 25, because the exercise price of the Company's employee stock options equals the market price of the underlying stock on the date of grant, no compensation expense is recognized. Pro forma information regarding net income and earnings per share under the fair value accounting method for the three and six month periods ended October 31, 1998 and 1997 has not been presented as the amounts are immaterial. NOTE E - INCOME TAXES A reconciliation of the provision for income taxes to the expected income tax expense at the statutory federal tax rate of 34% is as follows: Six Months Ended Six Months Ended Oct. 31, 1998 Oct. 31, 1997 ------------- ------------- Computed Expected Tax at Statutory Rate ($21,098) ($19,863) Benefit of Prior Years Amended Returns (19,286) 0 Foreign Taxes 346 822 Valuation Allowance 21,098 19,863 ------ ------ ($18,940) $822 ======== ====== 7 KINGS ROAD ENTERTAINMENT, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE E - INCOME TAXES (CONTINUED) The Company filed amended federal and state tax returns for the fiscal years ended April 30, 1997 and 1996 that resulted in a reduction in income tax expense of $19,286 recorded during the six month period ended October 31, 1998. For federal income tax purposes, the Company has available investment tax credits of approximately $2,166,000 after being reduced by 35% as a result of the Tax Reform Act of 1986 (expiring between 2000 and 2002) and net operating loss carryforwards of approximately $16,626,000 (expiring between 2001 and 2007) to offset future income tax liabilities. Deferred tax assets result from temporary differences between financial and tax accounting in the recognition of revenue and expenses. Temporary differences and carryforwards which give rise to deferred tax assets are as follows: As Of Oct. 31, 1998 ------------- Deferred Revenue $4,000 Film Cost Amortization 18,000 Net Operating Loss Carryforwards 6,650,000 Investment Tax Credit Carryforwards 2,166,000 Foreign Tax Credit Carryforwards 400,000 --------- 9,238,000 Valuation Allowance (9,238,000) --------- $0 ========= A valuation allowance of $9,238,000 has been recorded to offset the net deferred tax assets due to the uncertainty of realizing the benefits of the tax assets in the future. 8 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Recent Developments Subsequent to the fiscal year ended April 30, 1995, the Company has not produced any new films and has derived revenues almost exclusively from the exploitation of films produced prior to April 30, 1995. Following the death on October 4, 1996 of Mr. Stephen Friedman, the Company's founder and then Chairman of the Board of Directors and Chief Executive Officer, the Company has explored various business options, including, among other things, the liquidation of the Company, the sale of the Company as a going concern to an outside party, the sale of substantially all of the assets of the Company to an outside party and the issuance of shares of common stock to an outside party which would provide a new source of financing for the Company. The Company had discussions with over twenty outside parties which expressed varying degrees of interest in acquiring all or part of the Company or in supplying additional capital in return for an equity interest in the Company. On November 6, 1998, pursuant to the Acquisition Agreement, FAB Capital Corporation ("FAB"), MBO Music Verlag GmbH ("MBO"), Western Union Leasing Ltd. ("Western") and RAS Securities Corp. (collectively, the "Acquirors") purchased 962,360 shares of the Company's common stock (approximately 50.3% of the Company's then outstanding common stock) from the Estate of Stephen Friedman ("Estate") and Christopher Trunkey, the Chief Financial Officer of the Company, for a purchase price of $2.35 per share or $2,261,546 in the aggregate. In addition, Music Action Ltd. ("MAC") has agreed that it will, as soon as practicable but in any event within 120 days after November 6, 1998, make or cause to be made an offer to each of the Company's shareholders other than the Acquirors, the Estate and Mr. Trunkey, for the purchase of up to ninety percent (90%) of such shareholder's shares at a price of $2.35 per share ("Purchase Offer"). MAC has also agreed that, in the event the Purchase Offer is not made within ninety days after November 6, 1998, it will deposit $1,800,000 into escrow to be applied toward the Purchase Offer. FAB has agreed to make the $1,800,000 deposit into escrow in the event MAC does not do so. Effective November 9, 1998, the Company acquired 20% of the common stock of Immediate Entertainment Group, Inc. ("Immediate") from FAB, MBO and Western for a price of $2.50 per share paid by a combination of the issuance of 1,477,567 new shares of the Company's common stock and $2,510,803 in cash. The Company also entered into a non-binding letter of intent, pursuant to which Immediate will merge into a newly formed, wholly owned subsidiary of the Company in a proposed tax-free transaction. The merger is conditioned upon the negotiation and execution of definitive final agreements and the satisfaction of any legal requirements including the consent of shareholders, if required. Immediate's principal business is the production, acquisition and distribution of audio and video CD's as well as CD-ROM by engaging artists and producers to create recordings or acquiring previously completed recordings. 9 Results of Operations The Three Months Ended October 31, 1998 vs. the Three Months Ended October 31, 1997 For the quarter ended October 31, 1998 feature film revenues were approximately $72,000 as compared to approximately $313,000 for the quarter ended October 31, 1997. The substantial decrease in feature film revenues of approximately 77% results primarily from the fact that the Company has not produced any new films since the fiscal year ended April 30, 1995. Until such time as the Company either produces new films or develops and implements a new overall strategic plan, the Company expects that its feature film revenues will continue to decline. Costs related to revenue as a percentage of feature film revenues decreased to approximately 2% for the quarter ended October 31, 1998 from approximately 85% for the quarter ended October 31, 1997. This decrease results from the fact that a significant portion of the costs associated with the Company's films have previously been amortized. All of Me, Lovin' Molly and The Redemption, for example, generated significant revenues during the quarter with little or no amortization of costs associated with those revenues. Selling expenses increased to approximately $21,000 during the quarter ended October 31, 1998 versus approximately $19,000 during the same quarter last year. General and administrative costs decreased by approximately 29% to approximately $167,000 during the quarter ended October 31, 1998 versus approximately $236,000 during the same period last year. This decrease results primarily from a substantial decrease of approximately $109,000 in legal expenditures due to the resolution in December 1997 and April 1998 of certain litigation involving the Company partially offset by increased staff and executive salary expenses. The Company had a net loss of approximately $83,000 for the quarter ended October 31, 1998 versus approximately $174,000 for the quarter ended October 31, 1997 reflecting lower costs related to revenue and general and administrative costs. The Six Months Ended October 31, 1998 vs. the Six Months Ended October 31, 1997 For the six months ended October 31, 1998 feature film revenues were approximately $222,000 as compared to approximately $671,000 for the six months ended October 31, 1997. The substantial decrease in feature film revenues of approximately 67% results primarily from the fact that the Company has not produced any new films since the fiscal year ended April 30, 1995. Until such time as the Company either produces new films or develops and implements a new overall strategic plan, the Company expects that its feature film revenues will continue to decline. Interest income decreased to approximately $67,000 for the six months ended October 31, 1998 from approximately $95,000 during the same six month period last year, reflecting the decrease in marketable securities held during the six month period ended October 31, 1998. 10 Costs related to revenue as a percentage of feature film revenues decreased to approximately 4% for the six months ended October 31, 1998 from approximately 45% for the six months ended October 31, 1997. This decrease results from the fact that a significant portion of the costs associated with the Company's films have previously been amortized. Selling expenses increased to approximately $29,000 during the six months ended October 31, 1998 versus approximately $23,000 during the same six month period last year. General and administrative costs decreased by approximately 37% to approximately $313,000 during the six months ended October 31, 1998 versus approximately $499,000 during the same six month period last year. This decrease results primarily from a substantial decrease of approximately $212,000 in legal expenditures due to the resolution in December 1997 and April 1998 of certain litigation involving the Company which was partially offset by increased public company expenditures and executive salary expenses. The Company had a net loss of approximately $43,000 for the six months ended October 31, 1998 versus approximately $59,000 for the quarter ended October 31, 1997 reflecting lower costs related to revenue and general and administrative costs. Liquidity and Capital Resources The production of motion pictures requires substantial capital. In producing a motion picture, the Company may expend substantial sums for both the production and distribution of a picture, before that film generates any revenues. In many instances the Company may obtain advances or guarantees from its distributors but these advances and guarantees generally may defray only a portion of a film's cost. The Company's principal source of working capital during the six months ended October 31, 1998 was motion picture licensing income. Except for the financing of film production costs, management believes that its existing cash resources will be sufficient to fund its ongoing operations. For the six months ended October 31, 1998, the Company's net cash flow used in its operating activities was approximately $177,000, a decrease of approximately $249,000 as compared to approximately $72,000 of net cash flow provided by operating activities during the six months ended October 31, 1997. This decrease is due primarily to the substantial decrease of approximately 67% in feature film revenues during the six month period ended October 31, 1998 as compared to the same period in 1997. During the six months ended October 31, 1997, the Company used cash flow, primarily generated by the sale of marketable securities, to make a cash distribution to shareholders of approximately $3,957,000 on June 27, 1997. As of October 31, 1998, the Company had cash, cash equivalents and marketable securities of approximately $2,456,000 as compared to approximately $2,382,000 as of October 31, 1997. 11 Future Commitments The Company has no material commitments for capital expenditures. The Company will evaluate the adequacy of and need for capital resources once a final strategic plan has been developed. (See "Recent Developments"). Forward-Looking Statements The foregoing discussion, as well as the other sections of this Quarterly Report on Form 10-QSB, contains forward-looking statements that reflect the Company's current views with respect to future events and financial results. Forward-looking statements usually include the verbs "anticipates," believes," "estimates," "expects," "intends," "plans," "projects," "understands" and other verbs suggesting uncertainty. The Company reminds shareholders that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors which could cause the actual results to differ materially from the forward-looking statements. Potential factors that could affect forward-looking statements include, among other things, the Company's ability to identify, produce and complete film projects that are successful in the marketplace, to arrange financing, distribution and promotion for these projects on favorable terms in various markets and to attract and retain qualified personnel. In addition, the Company is currently seeking merger and acquisition proposals for the Company and its plans, strategies and future results are subject to the outcome of any such proposals. 12 PART II - OTHER INFORMATION Item 5 - Other Information On November 6, 1998, a change in control of the Company occurred which resulted from the purchase of 962,360 shares of Company's common stock from the Estate of Stephen Friedman and Christopher Trunkey, the Chief Financial Officer of the Company by FAB Capital Corp., MBO Music Verlag GmbH, Western Union Leasing Ltd. and RAS Securities Corp. pursuant to the Acquisition Agreement dated November 6, 1998. Under the Acquisition Agreement, the then existing members of the Company's board of directors resigned and elected in their place Phillip Cook and James Leaderer. In addition, Kenneth Aguado resigned as the Company's Chief Executive Officer and Phillip Cook was appointed President and James Leaderer was appointed Senior Vice President. The Company also reported that it had acquired 20% of the common stock of Immediate Entertainment Group, Inc. for a combination of cash and newly issued shares of the Company's common stock. Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits 10(a) Stock Acquisition Agreement, dated November 6, 1998, between the Estate of Stephen Friedman, RAS Securities Corp., FAB Capital Corporation, Christopher Trunkey and the Company. (1) 10(b) Stock Purchase Agreement, dated November 9, 1998, between Western Union Leasing Ltd., FAB Capital Corporation, MBO Music Verlag GmbH, Immediate Entertainment Group, Inc. and the Company. (1) 27 Financial Data Schedule. --------------- (1) Incorporated by reference to the exhibit of the same number in the Schedule 13D relating to the Company's securities dated November 13, 1998 filed by FAB Capital Corp., RAS Securities Corp., MBO Music Verlag GmbH, Western Union Leasing Ltd., Christoph Martin and Michael Berresheim. (b) Forms 8-K On November 20, 1998, the Company filed a Form 8-K reporting under Item 1 thereof a change in control of the Company as described in Item 5 - Other Information above. 13 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. Date: December 11, 1998 KINGS ROAD ENTERTAINMENT, INC. By: /s/Christopher M. Trunkey -------------------------- Christopher M. Trunkey, Chief Financial Officer EX-27 2 EXHIBIT 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE REGISTRANT'S FORM 10-QSB FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS APR-30-1999 OCT-31-1998 2,456,168 0 406,959 (10,000) 312,397 3,222,923 237,627 (222,700) 3,240,350 135,369 0 21,136,318 0 0 (18,039,737) 3,240,350 72,247 106,699 1,500 189,832 0 0 0 (83,133) 174 (83,307) 0 0 0 (83,307) (.04) (.04)
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