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Wenn ja, dann wird es wohl eine heftige Kursbewegung geben!
MfG HGTPZ
MfG HGTPZ
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http://www.sec.gov/Archives/edgar/data/49444/000126606805000…
10KSB 1 body.htm FMLY FORM 10KSB JUNE 2005
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
(Mark One)
[X] Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended June 30, 2005 or
[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the
transition period from __________ to__________
Commission file number: 0-27063
Family Room Entertainment Corporation
(Name of small business issuer in its charter)
New Mexico 85-0206160
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
8530 Wilshire Blvd Suite 420 Beverly Hills, Ca. 90211.
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (310) 659-9411
Securities registered pursuant to Section 12(b) of the Act: (NONE)
Securities registered pursuant to Section 12(g) of the Act: Common Stock
Check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities 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
Check if there is no disclosure of delinquent filers pursuant to Item 405 Regulation S-B is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.
The issuer had revenues of $2,330,534 for the fiscal year ended June 30, 2005.
The aggregate market value of the voting stock held by non-affiliates on June 30, 2005 was approximately
$3,602,234 based on the average of the bid and asked prices of the issuer’s common stock in the over-the-counter market on such date as reported by the OTC Bulletin Board.
As of August 31, 2005, 89,537,254 shares of the issuer’s common stock were outstanding.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
(Check one): Yes ྑ No [X]
DOCUMENTS INCORPORATED BY REFERENCE
None
Transitional Small Business Disclosure Format Yes No X
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PART I
ITEM 1. Description of Business
General Business Development
Family Room Entertainment Corporation (the “FMLY”), is a New Mexico corporation originally organized and incorporated in 1969 as Cobb Resources Corporation. We are located in Beverly Hills, California, and are engaged in various aspects of motion picture entertainment, including development, production and production services.
Restructuring Transaction
Prior to February 3, 2000, we were engaged in copper mining and oil and gas exploration and marketable equity securities trading. Effective February 3, 2000, three individuals and certain entities under their control (collectively referred to as the “Investors”) acquired 88% of our common stock through a series of transactions as follows:
The three individuals each acquired 666,666 shares (approximately 7.8% individually and 23.4% in the aggregate of our common stock from our most significant stockholder (the “Stockholder”).
We sold substantially all of our existing assets, including mineral interests, cash, marketable equity securities and other assets, to the Stockholder in exchange for 2,000,000 shares of our common stock (that were placed in treasury) and the Stockholder’s assumption of all of our known and unknown liabilities, fixed and contingent, that had accrued up to February 3, 2000. The aggregate purchase price paid by the Stockholder in connection with this transaction was approximately $338,000. As a result of this transaction, we discontinued all current operations in which the FMLY was engaged.
We enacted a ten for one reverse stock split that was effective for stockholders of record on February 17, 2000.
Asset Purchase
Concurrent with the Restructuring Transaction described above, we acquired interests in certain film projects (the “Asset Purchase”) in exchange for 12,407,000 post-split shares of our common stock. The interests in the film projects acquired during the Asset Purchase were collectively valued at $ 1,912,000 based upon independent appraisal.
Name and Symbol Change
Effective May 22, 2000, COBB Resources Corporation’s name was changed to Family Room Entertainment Corporation, and its corresponding OTC:BB trading symbol “COBB” was changed to “FMLY”.
Family Room Entertainment Business Overview
Family Room Entertainment Corp. (“FMLY”) is engaged in various aspects of the motion picture entertainment industry, including development, production, and production services. FMLY develops, produces and performs production related services for the motion picture entertainment industry mainly through the following three wholly-owned subsidiaries:[Emmett/Furla Films] (1) Emmett/Furla Films Productions Corporation. (“EFFP”), a California Corporation, a motion picture development, production, and production related services entity that primarily develops and provides production related services for high budget motion pictures (in excess of $20,000,000). EFFP’s subsidiary, Good Entertainment Service, Inc., a Delaware Corporation, was originally a production servicing company and produced one motion picture “Good Advice” in the year 2000. Currently Good Entertainment Services, Inc. is the subsidiary that signs with the film and entertainment industry guilds when the contracted resource is a member of such guild; (2) Emmett Furla Films Distribution LLC, (EFFD) is a Delaware Limited Liability Company set up to contract with third parties for the world wide distribution and/or exploitation of FMLY’s wholly owned and or controlled entertainment properties, and (3) EFF Independent, Inc. (“EFFI”) a California Corporation, is setup primarily to develop and provide production related services for low budget motion picture (less than $20,000,000).
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FMLY, through EFFI and EFFP, contact the owners of the original materials (such as screenplays and books) with the intent of acquiring or licensing rights in and to those properties. In turn, EFFI and/or EFFP use those properties to attract creative talent (actors and directors) to the potential motion picture project. If successful, EFFI and EFFP then grants or licenses out those rights to third party financiers of motion pictures, who will then contract with the creative talent EFFI or EFFP has attracted to the property as well as finance, produce and distribute/exploit the motion picture.
Financing FMLY’s Motion Pictures
FMLY’s goal, through EFFI and EFFP, is to facilitate relationships (and as such, provide production related services) between creative talent (including writers, actors and directors) and companies who produce, finance and distribute motion pictures. As mentioned, FMLY acquires or licenses rights to materials upon which it believes motion pictures can be based (screenplays, books, etcetera), referred to within the entertainment industry as the “underlying property.” FMLY may further develop an underlying property by contracting for additional writing services and/or by bringing in new writers to perform “polishes” or “rewrites” on a particular “underlying property.” If FMLY is satisfied with the creative state of the “underlying property,” it will then make offers to directors and/or actors, to perform services in connection with a particular motion picture based on the underlying property. These offers are very often contingent and subject to the satisfaction of certain production elements, such as financier approval of the screenplay and the financier’s selection of a start date for principal photography. If a director or actors accepts one of FMLY’s offers, the director or actors are said to be “attached” to the motion picture project. Armed with the underlying property and the attached creative element(s) (these elements are often called the “package” in Hollywood), FMLY may then approach third party financiers seeking financing as well as distribution for the potential motion picture. Another approach that FMLY may take is to contact financiers first, seeking to produce the film first, and then with a finished (or nearly finished) motion picture product, obtain distribution for the picture.
Distributing FMLY’s Motion Pictures
Currently, FMLY does not directly distribute motion pictures. Instead, when FMLY seeks financing for its motion picture “packages,” the distribution rights are often obtained by the financier as collateral for their investment, in other words, third parties purchase the world-wide exploitation and distribution rights to a motion picture for the cost (or amount) it takes to produce the motion picture.
The Home Marketplace for Motion Picture Product
By in large, FMLY does not distribute its properties to the Home Video, Pay-per-view, Pay Cable of Broadcast and/or Basic Cable markets. With regard to motion picture properties where FMLY has ownership in the picture, FMLY will very often (through EFFD) license out “all rights” to a third party distributor who may distribute to the above markets, or FMLY will hire a third party to represent (i.e. an “agent”) FMLY’s various rights to the above markets on behalf of FMLY and then FMLY would select from and enter in to an agreement with what it perceives to be the best offers presented to it by the agent.
The “home marketplace” for FMLY’s motion picture properties (in examples where FMLY owns or controls a majority of the copyright and/or distribution/exploitation rights) includes: (1) Home Video/DVD, which is the promotion and sale of videocassettes, DVDs and videodiscs to video retailers (including video specialty stores, convenience stores, record stores “on-line” stores (i.e., Amazon.com) and other outlets), which then rent or sell the videocassettes and videodiscs to consumers for private viewing; (2) Pay-per-view television, whereby cable and satellite television subscribers to purchase individual programs on a "per use" basis; (3) Pay Cable, which consists primarily of HBO/Cinemax, Showtime/The Movie Channel, Encore/Starz and a number of regional pay services; (4) Broadcast and Basic Cable Television, whereby viewers receive, without charge, programming broadcast over the air by affiliates of the major networks (ABC, CBS, NBC, and Fox), recently formed networks (UPN and WB Network), independent television stations and cable and satellite networks and stations.
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FMLY has a limited number of customers. A percentage breakout of revenue by major customer follows:
Major Customers June 30,
2005 2004
NuImage/Millennium Films 86.78% 76.67%
Lions Gate Films 0.00% 8.04%
Regents Films 0.00% 10.33%
Platinium Disc 1.00% 0.00%
Lantern Lane 1.00% 0.00%
Other 11.22% 4.95%
Total Revenue 100.00% 100%
Technological Developments
Technological developments, including video server and compression technologies which regional telephone companies and others are developing and expanding markets for DVD, could make competing delivery systems economically viable and could significantly impact the home video market but would most likely have minimal effect on FMLY. These developments could favorable affect FMLY’s third party distributors as a result of new distribution channels, which in turn could pass along some of the effect to FMLY, if at all.
Foreign Markets
In general, a very important portion of the financing for “independent” (i.e. not produced by a Major Studio or one of their subsidiaries) motion pictures comes from the “foreign markets” (i.e. those markets outside of the United States and English-speaking Canada). With respect to productions in with FMLY is associated with, the third party financier owns and/or controls these rights and uses them as collateral or purchases them outright in connection with the funding of the pictures FMLY (through its various subsidiaries) develops.
New Technologies
New means of delivery of entertainment products are constantly being developed and offered to the consumer, including the internet and High Definition. The impact of emerging technologies such as direct broadcast satellites and the internet on FMLY’s third party distributors cannot be determined at this time because the technology is still new. In turn how such an impact on third party distributors will be passed on to FMLY also cannot be determined at this time as well. However, in anticipation of changing technologies which may affect production costs to FMLY’s third party financiers of motion picture productions, such as High Definition Video, FMLY will continue to monitor these new possibilities.
Motion Picture Property Acquisition Process
By in large, the acquisition process for FMLY, is the process by which “underlying properties” are acquired or licensed by EFFP or EFFI. In turn, EFFI and/or EFFP uses those properties to attract creative talent (actors and directors) to the potential motion picture project. If successful, EFFI and EFFP then grants or licenses out those rights to third party financiers of motion pictures, who will then contract with the creative talent EFFI or EFFP has attracted to the property as well as finance, produce and distribute/exploit the motion picture.
FMLY Feature Film Production
FMLY’s primary involvement with feature film production is in the area of the development of “underlying properties” (see FMLY Acquisition Process). By in large, FMLY engages third parties to produce, finance and exploit/distribute the motion picture “packages” it, through EFFI and/or EFFP, puts together. In many examples, FMLY will also provide production expertise (i.e. “production services”) to the third party producer and/or financier of the motion picture in question. When FMLY does provide production expertise, FMLY, or its principals, Randall Emmett and George Furla, is often credited as “producers” or executive producers” of the particular film in question. FMLY primarily derives its income from producer fees, consulting and service fees as well as its participation in the profits of the various pictures produced by third parties, who were developed and/or “packaged” by FMLY. Please refer to note 3 of our accompanied financial statements and past filings for a breakout of the revenue by film by service performed.
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FMLY`s feature film strategy generally is to develop and/or perform production services, and/or produce feature films when the production budgets for the films are expected to be entirely or substantially covered by a third party. In this way, FMLY’s risk is, by in large, only the capital required, if any, to develop and package the motion picture project. The entirety of the production budget, as well as any costs associated with distributing and/or exploiting the motion pictures in question, will be born by a third party or parties who have the resources and expertise to produce and/or distribute motion pictures.
Film Project History
Acquisition of film rights: Speedway Junky, Held for Ransom and After Sex film rights were acquired from 1st Miracle Entertainment Group in settlement of debt. We acquired the films without regard to current distribution agreements because we knew the films’ first cycles were near completion. Accordingly, any obligations to third parties, with the exception of Speedway Junkie, had been satisfied. Speedway Junkie’s distribution agreement was still in effect whereby FMLY subsequently earned approximately $76,000 in royalties. In addition, we only acquired the right to 50% of Speedway’s net revenues.
FMLY negotiated new distribution agreements for Held for Ranson and After Sex with Platinum Disc, a non major distribution company, for home video and DVD distribution in the US and English speaking Canada. These were new agreements and with the first royalties of $8,900 being received April 15, 2005. The documentation to allocate the funds between the movies has not been received yet. It usually takes approximately six months to one year for the distribution, sale of disks and the accounting of such sales to take place. FMLY will receive a 20% royalty of Platinum’s net revenue, if any. FMLY will incur nominal legal and delivery fees.
Second cycle is an industry term which means that the agreements for the first distribution phase have ended and the films are entered into their second distribution phase.
Profit Participation
FMLY’s profit participation in motion picture projects is determined by a calculation that assumes that all “negative costs”(production costs) of the picture (including, but not limited to, costs for development, principal photography and post-production) and “distribution expenses” (including, but not limited to, costs for marketing the film at various international film markets as well as costs associated with the delivery of the film and the physical elements to the various licensees of the film) are recovered by the financier plus interest thereon. After repayment of all negative costs, distribution expenses and interest thereon, the financier/distributor will charge a “distribution fee” (often a percentage of the gross income) for performing any sales or distribution services in connection with the picture. Following the payment of distribution fees and other costs, any amounts payable to creative elements that are contingent compensation (including, but not limited to, deferred compensation and bonuses) are paid to those third parties. Any money remaining is considered net profits from which profit participation is derived.
Royalties
FMLY has received royalties from only four motion picture projects, to date (1) Good Advice; (2); Speedway Junky; (3) After Sex; and (4) Held for Ransom.
FMLY produced “Good Advice” in 2000 and subsequently licensed the US distribution rights to Lions Gate Films for a period of 25 years and the foreign distribution rights to Myriad Pictures in perpetuity. These license agreements included up-front film guarantee compensation totaling $4,500,000. The agreement also called for a $60,000 payment from Lions Gate for video royalties, which was received in 2004. The Myriad Pictures agreement transferred all foreign rights and no additional revenues/participations/royalties will be received from Myriad.
“Speedway Junkie”- On August 16, 2001, FMLY purchased a 50% interest in “Speedway Junky” from Miracle Entertainment. The purchase agreement provided FMLY the right to recover the cost of the purchase plus 50% of the revenues generated by the motion picture. Prior to FMLY’s involvement, Miracle Entertainment had entered into a twenty-five year worldwide distribution agreement with Regent Worldwide. Though the term of this distribution agreement is twenty-five years, the bulk of revenue form a movie usually comes within the first two years. Speedway’s release date was over two years ago and, although FMLY has received approximately $86,000 in royalties from this film, we are not anticipating the receipt material additional royalties.
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“After Sex” and “Held for Ransom”: Under an April 29, 2002 loan agreement, FMLY was assigned Miracle Entertainment’s interest in “After Sex” and “Held for Ransom”. At the time of the loan agreement, Miracle Entertainment had a three-year US distribution agreement with Blockbuster Entertainment covering both pictures and a twenty-five year foreign distribution/sales agency agreement with Cutting Edge Entertainment covering both pictures. The Blockbuster Entertainment agreement with has since lapsed (and thus ended the “first cycle” of distribution within the United States). FML recently completed a US distribution agreement covering both films with Platinum Disc for home video/DVD market distribution. FMLY is hopeful that the agreement with Platinum Disc will generate royalty payments within the next 12 months, however no royalties have yet been received.
With respect to all four motion picture properties, FMLY owns a portion of the music publishing, which through the publishing societies like ASCAP and BMI, generate an immaterial amount of royalty income.
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FAMILY ROOM ENTERTAINMENT CORPORATION
SUMMARY OF FILM PROJECT HISTORY (1) (4)
Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Speedway Junky Jesse Bradford, Picture originally produced
Jordan Brower, by a third party financier.
September 2001 Jonathan Taylor FMLY subsequently
Thomas, Tiffani acquired 50% ownership
Theatrical Amber Theisssen, from the financier and
Warren G, Daryl receives royalties if any
Hannah
Randall Emmett & Production services
George Furla provided include the
Producers negotiation of financing
and distribution of the
picture, and consulting
services
$ 76,979 (3)
Held For Ransom Dennis Hopper, Picture originally produced
Zachery Ty Bryan, by a third party financier.
August 2000 Kam Heskin, FMLY subsequently
Jordan Brower, acquired 100% ownership
Video/Cable Randy Spelling, from said third party.
Tsianina Joelson, receives royalties, if any.
& Morgan Fairchild
(3-A) $ 6,000
After Sex Brooke Shields, Picture originally produced
Virginia Madsen, by a third party financier.
August 2000 D.B. Sweeney, FMLY subsequently
Dan Cortese, acquired 100% ownership
Video/Cable Maria Pitillo, & from the financier and
Johnathon Schaech receives royalties, if any.
(3-A) $ 6,000
I`m Over Here Now Andrew "Dice" Picture produced
Clay by a third party financier.
March 2000 FMLY retains profit
participation, if any.
Pay-per-View/ Video No profit participation
payments received to date.
(3) (3)
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Good Advice Charlie Sheen, Picture produced by FMLY
Angie Harmon, in conjunction with a third
December 2001 Denise Richards, party. FMLY retains
Rosanna Arquette, primary ownership and
Video/Cable & Jon Lovitz receives royalties, if any.
Randall Emmett & Production services
George Furla provided include the
Producers negotiation of financing
and distribution of the
picture, and consulting
services during
development, during
principal photography,
and during post
production (to ensure
that the film was
completed on time and
within budget). $ 60,000 (3)
Ticker Tom Sizemore, Produced by a third party
Steven Seagal, financier. FMLY provided
December 2001 Jamie Pressly, & production services and
Dennis Hopper financing and received
Video/Cable a fee and profit
participation, If any. No
profit participation to
received to date
(3) (3)
The Badge Billy Bob Thornton, Produced by a third party
(f/k/a Behind the Sun) Patricia Arquette, financier. FMLY provided
& Seal Ward production services and
September 2002 received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include the
Executive Producers negotiation of financing
and distribution of the
picture, and consulting
services during develop-
ment, during principal photo-
graphy, and during post
production (to ensure that,
On behalf of the financier
and distributor, that creative
and financial resources
were fully utilized) (3) (3)
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Run for the Money Christian Slater, Produced by a third party
Val Kilmer, financier. FMLY provided
February 2002 Daryl Hannah, production services and
Bokeem Woodbine, received a fee and
Video/Cable & Vern Troyer profit participation, if any.
No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include following:
Producers Negotiated for the acting
services of Val Kilmer,
Christian Slater and Daryl
Hannah; negotiated for the
financing and distribution
of the film and provided
consulting services during
development, during
principal photography,
and during post production
(to ensure that, on
behalf of the financier
and distributor, that creative
and financial resources
were fully utilized)
(3) (3)
Half Past Dead Steven Seagal, Produced by a third party
Morris Chestnut, financier. FMLY provided
November 2002 & Ja Rule production services and
received a fee and profit
Theatrical participation, if any. No profit
participation received to date.
Randall Emmett & Production services prov-
George Furla ided included negotiating
Executive Producers for the services of Steven
Segal for the picture (3) (3)
Narc Ray Liotta, Produced by a third party
Jason Patric, financier. FMLY provided
December 2002 & Busta Rhymes production services and
financing and received
Theatrical a fee and profit participation,
if any. No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include consulting
Executive Producers on the financing of the
of the picture.
(3) (3)
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Devil and Alec Baldwin, Produced by a third party
Daniel Webster Anthony Hopkins, financier. FMLY provided
& Jennifer Love production services and
March 2003 Hewitt received a fee and
profit participation, if any.
Video/Cable No profit participation
(Foreign Release) received to date.
$ - $ -
All I Want Elijah Wood, Produced by a third party
(f/k/a Try Seventeen) Franka Potente, financier. FMLY provided
& Mandy Moore production services and
September 2003 received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Producers consulting on the financing
of the picture.
$ - $ (3)
Out for a Kill Steven Seagal Produced by a third party
financier. FMLY provided
August 2003 production services and
received a fee and
Video/Cable profit participation, if any.
No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Producers negotiating for the services
of Steven Segal for the
picture and providing
consulting services during
development, on location
and during principal
photography
(to ensure that the film
was completed on time and
within budget).
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Belly of the Beast Steven Seagal Produced by a third party
financier. FMLY provided
December 2003 production services and
received a fee and
Video/Cable profit participation, if any.
No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Executive Producers negotiating for the services
of Steven Segal for the
picture and providing
consulting services during
development, on location
and during principal
photography
(to ensure that the film
was completed on time and
within budget).
$ - $ -
Blind Horizon Val Kilmer, Produced by a third party
Neve Campbell, financier. FMLY provided
March 2005 Sam Shepard & production services and
(Estimated Release) Faye Dunaway received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Producers negotiating for the acting
services of Val Kilmer,
negotiating for the financing
and distribution of the
picture and providing
consulting services during
development, during
principal photography and
during post production
(to ensure that, on
behalf of the financier
and distributor, that creative
and financial resources
were fully utilized)
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Control Ray Liotta, & Produced by a third party
William Dafoe financier. FMLY provided
March 2005 production services and
(Estimated Release) received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include negotiating
Producers for the acquisition of the
rights in and to the screen-
play upon which the picture
was based and negotiating
the acting services
agreement with Ray Liotta.
Also performed consulting
services during principal
photography and through-
out the post production
process to assist in getting
the picture completed on
time and within budget.
$ 117,500 $ -
Love Song for Bobby John Travolta & Produced by a third party
Long Scarlett Johansson financier. FMLY provided
production services and
December 2004 received a fee and
profit participation, if any.
Theatrical No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include consulting
Executive Producers in the negotiations for the
acting services of John
Travolta for the picture.
$ 25,000 $ -
The Amityville Horror Ryan Reynolds, & Produced by a third party
Melissa George financier. FMLY provided
April 2005 development services and
(Scheduled Release) received a fee.
Theatrical
Randall Emmett & Production services
George Furla provided include negotiating
Co- Executive Producers for the acquisition of the
rights in and to the picture
and subsequently
negotiated for their sale
to NuImage.
$ 110,516 $ 500,000
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Edison Morgan Freeman, Produced by a third party
Justin Timberlake, financier. FMLY provided
December 2005 LL Cool J, & production services and
(Estimated Release) Kevin Spacey received a fee and
profit participation, if any,
in the film.
Theatrical
Randall Emmett & Production services
George Furla provided include negotiating
Producers for the acquisition of the
rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Morgan
Freeman, Justin Timberlake,
LL Cool J and Kevin
Spacey. Also provided
consulting services
during principal
photography and the post
production process.
(to ensure that, on
behalf of the financier
and distributor, that creative
and financial resources
were fully utilized)
$ 250,000 $ -
Submerged Steven Seagal Produced by a third party
financier. FMLY provided
August 2005 development services and
(Estimated Release) received a fee.
Video/Cable
Randall Emmett & Production services
George Furla provided include
Producers negotiating an acting
services agreement with
Steven Segal for the
picture and providing
consulting services during
development, and on
location during principal
photography.
$ - $ 300,000
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Tenants Dylan McDermott, Produced by a third party
Snoop Doggy Dogg, financier. FMLY provided
December 2005 & Peter Falk production services and
(Estimated Release) financing and received
a fee and profit
Theatrical participation, if any, in
the film.
Randall Emmett & Production services
George Furla provided include
Producers negotiating the financing
of the picture and its
distribution by NuImage.
$ - $ 12,000
Today You Die Steven Seagal Produced by a third party
financier. FMLY provided
December 2005 production services and
(Estimated Release) received a fee and profit
participation, if any, in
Video/Cable the film
Randall Emmett & Production services
George Furla provided include
Producers negotiating an acting
services agreement with
Steven Segal for the
picture and providing
consulting services during
development, and on
location during principal
photography.
$ - $ 200,000
Wonderland Val Kilmer, Produced by a third party
Kate Bosworth, financier. FMLY provided
October 2003 Lisa Kudrow, development services and
Josh Lucas & received a fee.
Theatrical Dylan Mcdermott
Randall Emmett & Production services
George Furla provided include
Executive Producers obtaining financing
and negotiating for the
distribution of the picture.
$ - $ -
14
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Loverboy Kyra Sdgwick, Produced by a third party
Kevin Bacon, financier. FMLY provided
May 2005 Sandra Bullock, development services and
Matt Dillon, received a fee.
Theatrical Oliver Platt &
Marissa Tomei
Randall Emmett & Production services
George Furla provided include
Co- Executive Producers consulting on the financing
and distribution of the
picture.
$ - $ -
Shottas Ky-Mani Marley, Produced by a third party
Spragga Benz, financier. FMLY provided
December 2005 Wyclef Jean, post-production services
(Estimated Release) & Louie Rankin and financing and will
receive a fee and profit
Video/Cable participation, if any, in
the film.
Randall Emmett & Production services
George Furla provided include
Co- Executive Producers consulting on the financing
and distribution of the
picture.
$ - $ -
Black Widow William Dafoe Produced by a third party
aka The Widows financier. FMLY provided
Lover development services
and received a fee.
March 2006
(Estimated Release)
Theatrical
Randall Emmett & Production services
George Furla provided include obtaining
Executive Producers financing, negotiating for
distribution of the picture,
and providing consulting
services during
development, and on
location during principal
photography.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Lonely Hearts John Travolta, Produced by a third party
James Gandofini, financier. FMLY provided
March 2006 & Salma Hayek development services
(Estimated Release) and received a fee.
Theatrical
Randall Emmett & Production services
George Furla provided include
Co-Executive Producers negotiating an acting
services agreement for this
picture with John Travolta
and providing consulting
services during
development, and on
location during principal
photography.
$ - $ 100,000
Mercenary Steven Seagal Produced by a third party
financier. FMLY provided
April 2006 production services and
(Estimated Release) and received a fee.
Video/Cable 2005
Randall Emmett & Production services
George Furla provided include
Producers negotiating an acting
services agreement with
Steven Segal for the
picture and providing
consulting services during
development, and on
location during principal
photography.
Note: We do not have a
contract on this project;
and are uncertain about
profit participation.
$ - $ 300,000
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
16 Blocks Bruce Willis Produced by a third party
Mos Def financier. FMLY provided
May 2006 production services and
(Estimated Release) and received a fee.
2005. Additionally, we
Theatrical will receive a profit
participation, if any, in the
film.
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Bruce
Willis and the directing
services of Richard
Donner. Also provided
consulting services
during principal
photography and the post
production process.
$ - $ 625,000
Borderland Brian Presley Picture produced by FMLY
Jake Muxworthy in conjunction with a third
April 2006 Rider Strong party. FMLY retains
(Estimated Release) Sean Astin 50% ownership and
Theatrical Beto Cuevas receives royalties, if any.
Randall Emmett & Production services
George Furla provided include the
Producers negotiation of financing
and distribution of the
picture, and consulting
services during
development, during
principal photography,
and during post
production (to ensure
that the film was
completed on time and
within budget). $ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Wicker Man Nicolas Cage Produced by a third party
Ellen Burstyn financier. FMLY provided
April 2006 Leelee Sobieski production services and
(Estimated Release) will receive a producers
fee in the first quarter of
Theatrical 2006. Additionally, we
will receive a profit
participation, if any, in the
film. (This project is in
production with principal
photography having started
on July 28, 2005)
$ - $ -
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Nicolas
Cage and the directing
services of Neil
La Bute Also provided
consulting services
during principal
photography and the post
production process.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Contract Morgan Freeman Produced by a third party
John Cusack financier. FMLY provided
May 2006 production services and
(Estimated Release) will receive a producers
fee in the first quarter of
Theatrical 2006. Additionally, we
will receive a profit participation
, if any, in the film (This project is
In production with principal
photography having started
on July 11, 2005)
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Morgan
Freemand and John
Cusack and the directing
services of Bruce
Beresford Also provided
consulting services
during principal
photography and the post
production process.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
88 Minutes Al Pacino Produced by a third party
financier. FMLY provided
September 2006 production services and
(Estimated Release) will receive a producers
fee in the first quarter of
Theatrical 2006. Additionally, we
will receive a profit
participation, if any, in the
film. (This project is in
production with principal
photography having started
on July 11, 2005)
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Al
Pacino and the directing
services of Jon
Avnet. Also provided
consulting services
during principal
photography and the post
production process.
$ - $ -
Royalties and other revenue 105,440 281,534 281,534
Total $ 745,435 $ 2,330,534 2,330,534
Revenue by Customer (5)
Nuimage/Millenium $ 571,511 $ 2,278,000 2,278,000
Lions Gate Films 60,000 -
Regent Films 76,979 -
Other 36,945 52,534 52,534
$ 745,435 $ 2,330,534 2,330,534
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(1) The following is a chronological history of film projects that were developed, packaged and/or produced by
FMLY for third party financiers (unless otherwise noted) and for third party distributors and have been either
produced, released or waiting to be released by third parties in fiscal years 2000 through 2004, and/or are
scheduled for release in fiscal 2005
(2) Substantially all production, financing, and motion picture related services provided by FMLY are performed
by Randall Emmett and George Furla, officers and significant stockholders of the Company. The primary
functions/services performed by Messrs. Emmett and Furla are as follows:
a) Seek creative material, acquire rights and arrange for writing the screenplay
b) Negotiate talent for the project (I.e. development, actors, directors and writers) and assist with
pre-production, post-production and packaging.
c) Negotiate distribution agreements, both domestic and foreign.
d) Arrange for the sale of film rights.
(3) This motion picture has been in release for greater than two years and FMLY does not expect it to yield
significant additional revenue.
(3-A) This motion picture has been in release for greater than two years and is in its second cycle of distribution.
FMLY anticipates that additional revenues from new distribution agreements.
(4) There is no assurance that any motion picture that has not yet been released, will be released, that a change
in the scheduled release dates of any such films will not occur, or that if such motion picture is released,
that it will be successful. FMLY has various additional feature films under development and there can be no
assurance that any project under development will be produced, or that if produced, that it will be released
or successful.
(5) FMLY conducts business with a limited number of customers and loss of any one of those customers could
have a negative impact on its results of operations.
News Releases
On October 5, 2005 FMLY confirmed that it would host its first-ever Investor Conference Call on October 6, 2005 at 1:15pm (Pacific). To participate in the conference call, interested individuals were instructed to dial (from the United States) 1 (800) 572-9850. Participants were informed that an operator would greet them and ask for the “Conference ID,” which is 999-42-10. Participants were also informed that they would be asked to identify themselves in advance for the “question and answer” portion of the Conference Call, which follows a brief presentation by President and Chief Executive Officer, George Furla, and Chief Financial Officer, Stanley Tepper.
On October 5, 2005 FMLY announced that it would host its first-ever Investor Conference Call on October 6, 2005 at 1:15pm (Pacific). President and Chief Executive Officer, George Furla, and Chief Financial Officer, Stanley Tepper will present the call. Following a brief statement by Messrs. Furla and Tepper, investors will then have an opportunity to ask questions. FMLY restated that the conference call dialing instructions. FMLY also stated that following the Investor Conference Call, FMLY would release a summary of the Conference Call for those unable to participate.
On September 27, 2005 FMLY announced that it would state its year-end results for fiscal year 2005 (Year ended June 30) on October 6, 2005 at 1:15pm (Pacific). Also on October 6, 2005, FMLY stated that it would host its first ever investor conference call. President and CEO, George Furla, and CFO, Stanley Tepper will present the conference call. Following a brief, investors will then have an opportunity to ask questions regarding FMLY and its upcoming projects. FMLY stated that participants would dial 1 (800) 572-9850 and request conference call ID number 9994210. FMLY had previously stated that an announcement of Year End results and the Investor Conference Call would be on an earlier date, but due to the additional requirements of Sarbanes-Oxley regulations, and FMLY`s external auditors, who are located in Houston, Texas, were affected by hurricane Rita thus delaying the audit. The June 30, 2005 audit will be completed around September 30, 2005. Therefore, management has elected to postpone the announcement of Year End results for fiscal year 2005 as well as the Investor Conference Call.
On September 9, 2005 FMLY announced that it would state its year-end results for fiscal year 2005 (Year ended June 30) on September 28, 2005. Also on September 28, 2005, Family Room will host its first ever Investor Conference Call. Chief Executive Officer, George Furla, and Chief Financial Officer, Stanley Tepper will present the conference call. Following a brief statement by the Messrs. Furla and Tepper, Investors will then have an opportunity to ask questions regarding Family Room Entertainment and its upcoming projects. FMLY had previously stated that an announcement of Year End results and the Investor Conference Call would be on an earlier date, but due to the additional requirements of Sarbanes/Oxley regulations, management has elected to postpone the announcement of year-end results for fiscal year 2005 as well as the Investor Conference Call.
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On July 19, 2005 FMLY announced in conjunction with a third party financier/distributor that Jon Avnet had signed on to direct “88 MINUTES,” based on Gary Scott Thompson’s original spec. Al Pacino will star in the picture 88 MINUTES, which focuses on a college professor who moonlights as a forensic psychiatrist for the FBI and receives a death threat claiming that he has only has 88 minutes to live. In order to save his own life, he must use all of his skills and training to narrow down the possible suspects, who include a disgruntled student, a jilted former lover, and a serial killer who is already on death row.
On July 6, 2005 FMLY announced that on September 22, 2005 it would announce the year-end results for fiscal year 2005 (Year ended June 30). Also on September 22, 2005, Family Room will host its first ever investor conference call. Chief Execute Officer, George Furla, and Chief Financial Officer, Stanley Tepper will present the conference call. Following a brief statement by the Messrs. Furla and Tepper, Investors will then have an opportunity to ask questions regarding Family Room Entertainment and its upcoming projects.
On June 28, 2005 FMLY announced that it had acquired the true-life story of “Rin Tin Tin” to produce as a feature length motion picture. FMLY had let a previous option on the “Rin Tin Tin ” property lapse, but elected to re-acquire the property and quickly move forward with production, which is slated to begin prior to the end of the calendar year. The original Rin Tin Tin puppy was saved from the remains of a bombed-out kennel during World War I. That little German Shepherd puppy grew up to become the star of 22 feature films and has been credited as one of Hollywood’s first true “stars.” The progeny of the original “Rinty,” as he was affectionately called sometimes, went on to star in numerous other movies and television series, making the 80 year span of the name, one of the longest running careers in Hollywood.
On June 15, 2005 FMLY announced in conjunction with a third party distributor and a third party financier that principal photography would begin on the new crime thriller “BORDERLAND” in and around Tijuana, Mexico. Based on true events, the film stars Brian Presley, Rider Strong, Jake Muxworthy, Martha Higareda, Roberto Sosa, Jose Maria Yazpik and Damian Alcazar. It is the story of three young men who end up on the wrong side of an ancient cult in Mexico.
On May 27, 2005 FMLY announced with a third party financier/distributor that they would remake of the 1985 George Romero classic zombie picture, “DAY OF THE DEAD.” The original picture, which was written and directed by George A. Romero, follows a group of scientists and military personnel living in an underground bunker while the world above them is over-run with zombies. Unfortunately for the scientists who have been doing gruesome experiments on the un-dead as well as the military personnel who have been falling victim to their “experiments,” the zombies have made their way into their protective bunker.
On May 13, 2005 FMLY announced that “MERCENARY”, starring Steven Seagal, had completed principal photography in Capetown South Africa.
On May 9, 2005 FMLY announced the status of several projects in development and/or slated for production in the near future. The following projects were stated to have scheduled start dates: (1) “LONELY HEARTS,” starring John Travolta, James Gandofini and Salma Hayek, began principal photography in Florida on March 24, 2005; (2) “MERCENARY,” starring Steven Seagal, began principal photography on April 11, 2005 in Capetown, South Africa; (3) ”16 BLOCKS,” starring Bruce Willis for director Richard Donner had begun principal photography; (4) “THE CONTRACT,” starring John Cusack and Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing, is set to begin principal photography on July 3, 2005; (5) “SATURDAY NIGHT SPECIAL” starring DMX was set to begin principal photography on July 5, 2005; and (6) “THE WICKER MAN” starring Nicolas Cage for director Neil LaBute is set to begin principal photography on July 15, 2005.
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On May 6, 2005 FMLY announced that principal photography had commenced on the Richard Donner directed “16 BLOCKS” which stars Bruce Willis and Mos Def. Based on a screenplay written by Richard Wenk, 16 BLOCKS follows Jack Mosley (BRUCE WILLIS) an aging cop assigned the mundane task of escorting a fast talking, wise-cracking young witness (MOS DEF) to the courthouse - sixteen city blocks away and the action-packed thrill-ride that takes place in those “sixteen blocks.”
On May 5, 2005 FMLY announced that it had reached an agreement in principal with Darryl J. Quarles to write two screenplays on a speculative basis. The pictures would be produced by FMLY’ Randall Emmett and George Furla in association with Quarles. Subject to cast, the pictures are slated for production in early 2006. Emmett and Furla are currently Executive Producing “LONELY HEARTS” starring John Travolta, James Gandolfini and Salma Hayek. Later this month, Emmett/Furla will commence principal photography on the Bruce Willis action-er, “16 BLOCKS” with Richard Donner (“LEATHAL WEAPON”&“MAVERICK”) directing. Quarles recently wrote “THE LOVE GOD” for Imagine Entertainment. Mary L. Aloe and Jeff Rice brought Quarles’ two pictures to Emmett/Furla Films. Aloe and Rice will also serve as Executive producers on the two pictures.
On April 14, 2005 FMLY announced the status of several projects in development and/or slated for production in the near future. The following projects were stated to have scheduled start dates: (1) “LONELY HEARTS,” starring John Travolta, James Gandofini and Salma Hayek, began principal photography in Florida on March 24, 2005; (2) “MERCENARY,” starring Steven Seagal, began principal photography on April 11, 2005 in Capetown, South Africa; (3) ”16 BLOCKS,” starring Bruce Willis for director Richard Donner was scheduled to begin principal photography on April 22, 2005; (4) “THE CONTRACT,” starring John Cusack and Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing, is set to begin principal photography on July 3, 2005; (5) “SATURDAY NIGHT SPECIAL” starring DMX is set to begin principal photography on July 5, 2005; and (6) “THE WICKER MAN” starring Nicolas Cage for director Neil LaBute is set to begin principal photography on July 15, 2005. The following projects have completed principal photography and are currently in post-production: (1) “THE TENANTS,” starring Dylan McDermott and Snoop Doggy Dogg; (2) “TODAY YOU DIE” starring Steven Seagal; (3) “SUBMERGED,” starring Steven Seagal; and (4) “THE WIDOW’S LOVER,” starring Willem Dafoe. Due to then currently marketplace lack of interest in the project “RIN TIN TIN”, FMLY elected not to further pursue third party financing and distribution for the project.
On March 25, 2005 FMLY announced that they had acquired the rights to remake the 1980 horror classic, TERROR TRAIN and had signed Ryan Elsinger to write the screenplay. Emmett/Furla Films was also in negotiations with a third party financier to fund the production of the picture. The picture was slated to begin pre-production in late summer. The original picture, which was directed by Roger Spottiswoode and starred Jamie Lee Curtis, follows a group of college coeds being terrorized by a masked killer during a New Year`s Masquerade on a chartered train.
On March 15, 2005 FMLY announced in conjunction with third party financiers that Bruce Willis had signed on to star in “16 BLOCKS” for director Richard Donner. The picture is scheduled to begin filming in Toronto and New York in late summer. Based on a screenplay written by Richard Wenk, 16 BLOCKS follows Jack Mosley (BRUCE WILLIS) an aging cop assigned the mundane task of escorting a fast talking, wise-cracking young witness to the courthouse - sixteen city blocks away and the action-packed thrill-ride that takes place in those “sixteen blocks.” FMLY also announced that the project “88 MINUTES” had been delayed pending a new start date.
On March 14, 2005 FMLY announced that it has executed an agreement with Platinum Disc Corporation to distribute the wholly owned motion picture titles “AFTER SEX” and “HELD FOR RANSOM” on Video and DVD within the United States. The announcement was a follow-up to the November 23, 2004 announcement from Emmett/Furla Films, a wholly owned subsidiary of Family Room Entertainment Corporation, whereby it was stated that its wholly owned titles “AFTER SEX” and “HELD FOR RANSOM” had completed their first cycle of distribution within the United States and all rights (including the television and the home video/DVD rights) had become available for re-licensing. A third-party, Lantern Lane Entertainment represented the two titles on behalf of FMLY.
On March 4, 2005 FMLY announced in conjunction with third party financiers that Nicolas Cage has signed to star in “THE WICKER MAN” for writer/director Neil LaBute. The picture was scheduled to begin filming in Vancouver in mid-July. The suspense thriller by Neil LaBute is a remake of the 1973 UK cult classic. THE WICKER MAN follows the story of Sheriff Edward Malus (NICOLAS CAGE) as he investigates the disappearance of a young girl on a remote island off the coast of Maine. Things and people are not as they seem on the island and when Sheriff Malus discovers evidence of pagan rituals his hope of unraveling the girl’s disappearance become increasingly uncertain. FMLY also announced that the project “RIN TIN TIN” has been abandoned project due to lack of marketplace response.
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On February 25, 2005, FMLY announced the status of several projects in development and/or slated for production in the near future. The following pro
http://www.sec.gov/Archives/edgar/data/49444/000126606805000…
10KSB 1 body.htm FMLY FORM 10KSB JUNE 2005
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
(Mark One)
[X] Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended June 30, 2005 or
[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the
transition period from __________ to__________
Commission file number: 0-27063
Family Room Entertainment Corporation
(Name of small business issuer in its charter)
New Mexico 85-0206160
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
8530 Wilshire Blvd Suite 420 Beverly Hills, Ca. 90211.
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (310) 659-9411
Securities registered pursuant to Section 12(b) of the Act: (NONE)
Securities registered pursuant to Section 12(g) of the Act: Common Stock
Check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities 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
Check if there is no disclosure of delinquent filers pursuant to Item 405 Regulation S-B is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.
The issuer had revenues of $2,330,534 for the fiscal year ended June 30, 2005.
The aggregate market value of the voting stock held by non-affiliates on June 30, 2005 was approximately
$3,602,234 based on the average of the bid and asked prices of the issuer’s common stock in the over-the-counter market on such date as reported by the OTC Bulletin Board.
As of August 31, 2005, 89,537,254 shares of the issuer’s common stock were outstanding.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
(Check one): Yes ྑ No [X]
DOCUMENTS INCORPORATED BY REFERENCE
None
Transitional Small Business Disclosure Format Yes No X
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PART I
ITEM 1. Description of Business
General Business Development
Family Room Entertainment Corporation (the “FMLY”), is a New Mexico corporation originally organized and incorporated in 1969 as Cobb Resources Corporation. We are located in Beverly Hills, California, and are engaged in various aspects of motion picture entertainment, including development, production and production services.
Restructuring Transaction
Prior to February 3, 2000, we were engaged in copper mining and oil and gas exploration and marketable equity securities trading. Effective February 3, 2000, three individuals and certain entities under their control (collectively referred to as the “Investors”) acquired 88% of our common stock through a series of transactions as follows:
The three individuals each acquired 666,666 shares (approximately 7.8% individually and 23.4% in the aggregate of our common stock from our most significant stockholder (the “Stockholder”).
We sold substantially all of our existing assets, including mineral interests, cash, marketable equity securities and other assets, to the Stockholder in exchange for 2,000,000 shares of our common stock (that were placed in treasury) and the Stockholder’s assumption of all of our known and unknown liabilities, fixed and contingent, that had accrued up to February 3, 2000. The aggregate purchase price paid by the Stockholder in connection with this transaction was approximately $338,000. As a result of this transaction, we discontinued all current operations in which the FMLY was engaged.
We enacted a ten for one reverse stock split that was effective for stockholders of record on February 17, 2000.
Asset Purchase
Concurrent with the Restructuring Transaction described above, we acquired interests in certain film projects (the “Asset Purchase”) in exchange for 12,407,000 post-split shares of our common stock. The interests in the film projects acquired during the Asset Purchase were collectively valued at $ 1,912,000 based upon independent appraisal.
Name and Symbol Change
Effective May 22, 2000, COBB Resources Corporation’s name was changed to Family Room Entertainment Corporation, and its corresponding OTC:BB trading symbol “COBB” was changed to “FMLY”.
Family Room Entertainment Business Overview
Family Room Entertainment Corp. (“FMLY”) is engaged in various aspects of the motion picture entertainment industry, including development, production, and production services. FMLY develops, produces and performs production related services for the motion picture entertainment industry mainly through the following three wholly-owned subsidiaries:[Emmett/Furla Films] (1) Emmett/Furla Films Productions Corporation. (“EFFP”), a California Corporation, a motion picture development, production, and production related services entity that primarily develops and provides production related services for high budget motion pictures (in excess of $20,000,000). EFFP’s subsidiary, Good Entertainment Service, Inc., a Delaware Corporation, was originally a production servicing company and produced one motion picture “Good Advice” in the year 2000. Currently Good Entertainment Services, Inc. is the subsidiary that signs with the film and entertainment industry guilds when the contracted resource is a member of such guild; (2) Emmett Furla Films Distribution LLC, (EFFD) is a Delaware Limited Liability Company set up to contract with third parties for the world wide distribution and/or exploitation of FMLY’s wholly owned and or controlled entertainment properties, and (3) EFF Independent, Inc. (“EFFI”) a California Corporation, is setup primarily to develop and provide production related services for low budget motion picture (less than $20,000,000).
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FMLY, through EFFI and EFFP, contact the owners of the original materials (such as screenplays and books) with the intent of acquiring or licensing rights in and to those properties. In turn, EFFI and/or EFFP use those properties to attract creative talent (actors and directors) to the potential motion picture project. If successful, EFFI and EFFP then grants or licenses out those rights to third party financiers of motion pictures, who will then contract with the creative talent EFFI or EFFP has attracted to the property as well as finance, produce and distribute/exploit the motion picture.
Financing FMLY’s Motion Pictures
FMLY’s goal, through EFFI and EFFP, is to facilitate relationships (and as such, provide production related services) between creative talent (including writers, actors and directors) and companies who produce, finance and distribute motion pictures. As mentioned, FMLY acquires or licenses rights to materials upon which it believes motion pictures can be based (screenplays, books, etcetera), referred to within the entertainment industry as the “underlying property.” FMLY may further develop an underlying property by contracting for additional writing services and/or by bringing in new writers to perform “polishes” or “rewrites” on a particular “underlying property.” If FMLY is satisfied with the creative state of the “underlying property,” it will then make offers to directors and/or actors, to perform services in connection with a particular motion picture based on the underlying property. These offers are very often contingent and subject to the satisfaction of certain production elements, such as financier approval of the screenplay and the financier’s selection of a start date for principal photography. If a director or actors accepts one of FMLY’s offers, the director or actors are said to be “attached” to the motion picture project. Armed with the underlying property and the attached creative element(s) (these elements are often called the “package” in Hollywood), FMLY may then approach third party financiers seeking financing as well as distribution for the potential motion picture. Another approach that FMLY may take is to contact financiers first, seeking to produce the film first, and then with a finished (or nearly finished) motion picture product, obtain distribution for the picture.
Distributing FMLY’s Motion Pictures
Currently, FMLY does not directly distribute motion pictures. Instead, when FMLY seeks financing for its motion picture “packages,” the distribution rights are often obtained by the financier as collateral for their investment, in other words, third parties purchase the world-wide exploitation and distribution rights to a motion picture for the cost (or amount) it takes to produce the motion picture.
The Home Marketplace for Motion Picture Product
By in large, FMLY does not distribute its properties to the Home Video, Pay-per-view, Pay Cable of Broadcast and/or Basic Cable markets. With regard to motion picture properties where FMLY has ownership in the picture, FMLY will very often (through EFFD) license out “all rights” to a third party distributor who may distribute to the above markets, or FMLY will hire a third party to represent (i.e. an “agent”) FMLY’s various rights to the above markets on behalf of FMLY and then FMLY would select from and enter in to an agreement with what it perceives to be the best offers presented to it by the agent.
The “home marketplace” for FMLY’s motion picture properties (in examples where FMLY owns or controls a majority of the copyright and/or distribution/exploitation rights) includes: (1) Home Video/DVD, which is the promotion and sale of videocassettes, DVDs and videodiscs to video retailers (including video specialty stores, convenience stores, record stores “on-line” stores (i.e., Amazon.com) and other outlets), which then rent or sell the videocassettes and videodiscs to consumers for private viewing; (2) Pay-per-view television, whereby cable and satellite television subscribers to purchase individual programs on a "per use" basis; (3) Pay Cable, which consists primarily of HBO/Cinemax, Showtime/The Movie Channel, Encore/Starz and a number of regional pay services; (4) Broadcast and Basic Cable Television, whereby viewers receive, without charge, programming broadcast over the air by affiliates of the major networks (ABC, CBS, NBC, and Fox), recently formed networks (UPN and WB Network), independent television stations and cable and satellite networks and stations.
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FMLY has a limited number of customers. A percentage breakout of revenue by major customer follows:
Major Customers June 30,
2005 2004
NuImage/Millennium Films 86.78% 76.67%
Lions Gate Films 0.00% 8.04%
Regents Films 0.00% 10.33%
Platinium Disc 1.00% 0.00%
Lantern Lane 1.00% 0.00%
Other 11.22% 4.95%
Total Revenue 100.00% 100%
Technological Developments
Technological developments, including video server and compression technologies which regional telephone companies and others are developing and expanding markets for DVD, could make competing delivery systems economically viable and could significantly impact the home video market but would most likely have minimal effect on FMLY. These developments could favorable affect FMLY’s third party distributors as a result of new distribution channels, which in turn could pass along some of the effect to FMLY, if at all.
Foreign Markets
In general, a very important portion of the financing for “independent” (i.e. not produced by a Major Studio or one of their subsidiaries) motion pictures comes from the “foreign markets” (i.e. those markets outside of the United States and English-speaking Canada). With respect to productions in with FMLY is associated with, the third party financier owns and/or controls these rights and uses them as collateral or purchases them outright in connection with the funding of the pictures FMLY (through its various subsidiaries) develops.
New Technologies
New means of delivery of entertainment products are constantly being developed and offered to the consumer, including the internet and High Definition. The impact of emerging technologies such as direct broadcast satellites and the internet on FMLY’s third party distributors cannot be determined at this time because the technology is still new. In turn how such an impact on third party distributors will be passed on to FMLY also cannot be determined at this time as well. However, in anticipation of changing technologies which may affect production costs to FMLY’s third party financiers of motion picture productions, such as High Definition Video, FMLY will continue to monitor these new possibilities.
Motion Picture Property Acquisition Process
By in large, the acquisition process for FMLY, is the process by which “underlying properties” are acquired or licensed by EFFP or EFFI. In turn, EFFI and/or EFFP uses those properties to attract creative talent (actors and directors) to the potential motion picture project. If successful, EFFI and EFFP then grants or licenses out those rights to third party financiers of motion pictures, who will then contract with the creative talent EFFI or EFFP has attracted to the property as well as finance, produce and distribute/exploit the motion picture.
FMLY Feature Film Production
FMLY’s primary involvement with feature film production is in the area of the development of “underlying properties” (see FMLY Acquisition Process). By in large, FMLY engages third parties to produce, finance and exploit/distribute the motion picture “packages” it, through EFFI and/or EFFP, puts together. In many examples, FMLY will also provide production expertise (i.e. “production services”) to the third party producer and/or financier of the motion picture in question. When FMLY does provide production expertise, FMLY, or its principals, Randall Emmett and George Furla, is often credited as “producers” or executive producers” of the particular film in question. FMLY primarily derives its income from producer fees, consulting and service fees as well as its participation in the profits of the various pictures produced by third parties, who were developed and/or “packaged” by FMLY. Please refer to note 3 of our accompanied financial statements and past filings for a breakout of the revenue by film by service performed.
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FMLY`s feature film strategy generally is to develop and/or perform production services, and/or produce feature films when the production budgets for the films are expected to be entirely or substantially covered by a third party. In this way, FMLY’s risk is, by in large, only the capital required, if any, to develop and package the motion picture project. The entirety of the production budget, as well as any costs associated with distributing and/or exploiting the motion pictures in question, will be born by a third party or parties who have the resources and expertise to produce and/or distribute motion pictures.
Film Project History
Acquisition of film rights: Speedway Junky, Held for Ransom and After Sex film rights were acquired from 1st Miracle Entertainment Group in settlement of debt. We acquired the films without regard to current distribution agreements because we knew the films’ first cycles were near completion. Accordingly, any obligations to third parties, with the exception of Speedway Junkie, had been satisfied. Speedway Junkie’s distribution agreement was still in effect whereby FMLY subsequently earned approximately $76,000 in royalties. In addition, we only acquired the right to 50% of Speedway’s net revenues.
FMLY negotiated new distribution agreements for Held for Ranson and After Sex with Platinum Disc, a non major distribution company, for home video and DVD distribution in the US and English speaking Canada. These were new agreements and with the first royalties of $8,900 being received April 15, 2005. The documentation to allocate the funds between the movies has not been received yet. It usually takes approximately six months to one year for the distribution, sale of disks and the accounting of such sales to take place. FMLY will receive a 20% royalty of Platinum’s net revenue, if any. FMLY will incur nominal legal and delivery fees.
Second cycle is an industry term which means that the agreements for the first distribution phase have ended and the films are entered into their second distribution phase.
Profit Participation
FMLY’s profit participation in motion picture projects is determined by a calculation that assumes that all “negative costs”(production costs) of the picture (including, but not limited to, costs for development, principal photography and post-production) and “distribution expenses” (including, but not limited to, costs for marketing the film at various international film markets as well as costs associated with the delivery of the film and the physical elements to the various licensees of the film) are recovered by the financier plus interest thereon. After repayment of all negative costs, distribution expenses and interest thereon, the financier/distributor will charge a “distribution fee” (often a percentage of the gross income) for performing any sales or distribution services in connection with the picture. Following the payment of distribution fees and other costs, any amounts payable to creative elements that are contingent compensation (including, but not limited to, deferred compensation and bonuses) are paid to those third parties. Any money remaining is considered net profits from which profit participation is derived.
Royalties
FMLY has received royalties from only four motion picture projects, to date (1) Good Advice; (2); Speedway Junky; (3) After Sex; and (4) Held for Ransom.
FMLY produced “Good Advice” in 2000 and subsequently licensed the US distribution rights to Lions Gate Films for a period of 25 years and the foreign distribution rights to Myriad Pictures in perpetuity. These license agreements included up-front film guarantee compensation totaling $4,500,000. The agreement also called for a $60,000 payment from Lions Gate for video royalties, which was received in 2004. The Myriad Pictures agreement transferred all foreign rights and no additional revenues/participations/royalties will be received from Myriad.
“Speedway Junkie”- On August 16, 2001, FMLY purchased a 50% interest in “Speedway Junky” from Miracle Entertainment. The purchase agreement provided FMLY the right to recover the cost of the purchase plus 50% of the revenues generated by the motion picture. Prior to FMLY’s involvement, Miracle Entertainment had entered into a twenty-five year worldwide distribution agreement with Regent Worldwide. Though the term of this distribution agreement is twenty-five years, the bulk of revenue form a movie usually comes within the first two years. Speedway’s release date was over two years ago and, although FMLY has received approximately $86,000 in royalties from this film, we are not anticipating the receipt material additional royalties.
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“After Sex” and “Held for Ransom”: Under an April 29, 2002 loan agreement, FMLY was assigned Miracle Entertainment’s interest in “After Sex” and “Held for Ransom”. At the time of the loan agreement, Miracle Entertainment had a three-year US distribution agreement with Blockbuster Entertainment covering both pictures and a twenty-five year foreign distribution/sales agency agreement with Cutting Edge Entertainment covering both pictures. The Blockbuster Entertainment agreement with has since lapsed (and thus ended the “first cycle” of distribution within the United States). FML recently completed a US distribution agreement covering both films with Platinum Disc for home video/DVD market distribution. FMLY is hopeful that the agreement with Platinum Disc will generate royalty payments within the next 12 months, however no royalties have yet been received.
With respect to all four motion picture properties, FMLY owns a portion of the music publishing, which through the publishing societies like ASCAP and BMI, generate an immaterial amount of royalty income.
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FAMILY ROOM ENTERTAINMENT CORPORATION
SUMMARY OF FILM PROJECT HISTORY (1) (4)
Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Speedway Junky Jesse Bradford, Picture originally produced
Jordan Brower, by a third party financier.
September 2001 Jonathan Taylor FMLY subsequently
Thomas, Tiffani acquired 50% ownership
Theatrical Amber Theisssen, from the financier and
Warren G, Daryl receives royalties if any
Hannah
Randall Emmett & Production services
George Furla provided include the
Producers negotiation of financing
and distribution of the
picture, and consulting
services
$ 76,979 (3)
Held For Ransom Dennis Hopper, Picture originally produced
Zachery Ty Bryan, by a third party financier.
August 2000 Kam Heskin, FMLY subsequently
Jordan Brower, acquired 100% ownership
Video/Cable Randy Spelling, from said third party.
Tsianina Joelson, receives royalties, if any.
& Morgan Fairchild
(3-A) $ 6,000
After Sex Brooke Shields, Picture originally produced
Virginia Madsen, by a third party financier.
August 2000 D.B. Sweeney, FMLY subsequently
Dan Cortese, acquired 100% ownership
Video/Cable Maria Pitillo, & from the financier and
Johnathon Schaech receives royalties, if any.
(3-A) $ 6,000
I`m Over Here Now Andrew "Dice" Picture produced
Clay by a third party financier.
March 2000 FMLY retains profit
participation, if any.
Pay-per-View/ Video No profit participation
payments received to date.
(3) (3)
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Good Advice Charlie Sheen, Picture produced by FMLY
Angie Harmon, in conjunction with a third
December 2001 Denise Richards, party. FMLY retains
Rosanna Arquette, primary ownership and
Video/Cable & Jon Lovitz receives royalties, if any.
Randall Emmett & Production services
George Furla provided include the
Producers negotiation of financing
and distribution of the
picture, and consulting
services during
development, during
principal photography,
and during post
production (to ensure
that the film was
completed on time and
within budget). $ 60,000 (3)
Ticker Tom Sizemore, Produced by a third party
Steven Seagal, financier. FMLY provided
December 2001 Jamie Pressly, & production services and
Dennis Hopper financing and received
Video/Cable a fee and profit
participation, If any. No
profit participation to
received to date
(3) (3)
The Badge Billy Bob Thornton, Produced by a third party
(f/k/a Behind the Sun) Patricia Arquette, financier. FMLY provided
& Seal Ward production services and
September 2002 received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include the
Executive Producers negotiation of financing
and distribution of the
picture, and consulting
services during develop-
ment, during principal photo-
graphy, and during post
production (to ensure that,
On behalf of the financier
and distributor, that creative
and financial resources
were fully utilized) (3) (3)
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Run for the Money Christian Slater, Produced by a third party
Val Kilmer, financier. FMLY provided
February 2002 Daryl Hannah, production services and
Bokeem Woodbine, received a fee and
Video/Cable & Vern Troyer profit participation, if any.
No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include following:
Producers Negotiated for the acting
services of Val Kilmer,
Christian Slater and Daryl
Hannah; negotiated for the
financing and distribution
of the film and provided
consulting services during
development, during
principal photography,
and during post production
(to ensure that, on
behalf of the financier
and distributor, that creative
and financial resources
were fully utilized)
(3) (3)
Half Past Dead Steven Seagal, Produced by a third party
Morris Chestnut, financier. FMLY provided
November 2002 & Ja Rule production services and
received a fee and profit
Theatrical participation, if any. No profit
participation received to date.
Randall Emmett & Production services prov-
George Furla ided included negotiating
Executive Producers for the services of Steven
Segal for the picture (3) (3)
Narc Ray Liotta, Produced by a third party
Jason Patric, financier. FMLY provided
December 2002 & Busta Rhymes production services and
financing and received
Theatrical a fee and profit participation,
if any. No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include consulting
Executive Producers on the financing of the
of the picture.
(3) (3)
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Devil and Alec Baldwin, Produced by a third party
Daniel Webster Anthony Hopkins, financier. FMLY provided
& Jennifer Love production services and
March 2003 Hewitt received a fee and
profit participation, if any.
Video/Cable No profit participation
(Foreign Release) received to date.
$ - $ -
All I Want Elijah Wood, Produced by a third party
(f/k/a Try Seventeen) Franka Potente, financier. FMLY provided
& Mandy Moore production services and
September 2003 received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Producers consulting on the financing
of the picture.
$ - $ (3)
Out for a Kill Steven Seagal Produced by a third party
financier. FMLY provided
August 2003 production services and
received a fee and
Video/Cable profit participation, if any.
No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Producers negotiating for the services
of Steven Segal for the
picture and providing
consulting services during
development, on location
and during principal
photography
(to ensure that the film
was completed on time and
within budget).
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Belly of the Beast Steven Seagal Produced by a third party
financier. FMLY provided
December 2003 production services and
received a fee and
Video/Cable profit participation, if any.
No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Executive Producers negotiating for the services
of Steven Segal for the
picture and providing
consulting services during
development, on location
and during principal
photography
(to ensure that the film
was completed on time and
within budget).
$ - $ -
Blind Horizon Val Kilmer, Produced by a third party
Neve Campbell, financier. FMLY provided
March 2005 Sam Shepard & production services and
(Estimated Release) Faye Dunaway received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include
Producers negotiating for the acting
services of Val Kilmer,
negotiating for the financing
and distribution of the
picture and providing
consulting services during
development, during
principal photography and
during post production
(to ensure that, on
behalf of the financier
and distributor, that creative
and financial resources
were fully utilized)
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Control Ray Liotta, & Produced by a third party
William Dafoe financier. FMLY provided
March 2005 production services and
(Estimated Release) received a fee and
profit participation, if any.
Video/Cable No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include negotiating
Producers for the acquisition of the
rights in and to the screen-
play upon which the picture
was based and negotiating
the acting services
agreement with Ray Liotta.
Also performed consulting
services during principal
photography and through-
out the post production
process to assist in getting
the picture completed on
time and within budget.
$ 117,500 $ -
Love Song for Bobby John Travolta & Produced by a third party
Long Scarlett Johansson financier. FMLY provided
production services and
December 2004 received a fee and
profit participation, if any.
Theatrical No profit participation
received to date.
Randall Emmett & Production services
George Furla provided include consulting
Executive Producers in the negotiations for the
acting services of John
Travolta for the picture.
$ 25,000 $ -
The Amityville Horror Ryan Reynolds, & Produced by a third party
Melissa George financier. FMLY provided
April 2005 development services and
(Scheduled Release) received a fee.
Theatrical
Randall Emmett & Production services
George Furla provided include negotiating
Co- Executive Producers for the acquisition of the
rights in and to the picture
and subsequently
negotiated for their sale
to NuImage.
$ 110,516 $ 500,000
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Edison Morgan Freeman, Produced by a third party
Justin Timberlake, financier. FMLY provided
December 2005 LL Cool J, & production services and
(Estimated Release) Kevin Spacey received a fee and
profit participation, if any,
in the film.
Theatrical
Randall Emmett & Production services
George Furla provided include negotiating
Producers for the acquisition of the
rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Morgan
Freeman, Justin Timberlake,
LL Cool J and Kevin
Spacey. Also provided
consulting services
during principal
photography and the post
production process.
(to ensure that, on
behalf of the financier
and distributor, that creative
and financial resources
were fully utilized)
$ 250,000 $ -
Submerged Steven Seagal Produced by a third party
financier. FMLY provided
August 2005 development services and
(Estimated Release) received a fee.
Video/Cable
Randall Emmett & Production services
George Furla provided include
Producers negotiating an acting
services agreement with
Steven Segal for the
picture and providing
consulting services during
development, and on
location during principal
photography.
$ - $ 300,000
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Tenants Dylan McDermott, Produced by a third party
Snoop Doggy Dogg, financier. FMLY provided
December 2005 & Peter Falk production services and
(Estimated Release) financing and received
a fee and profit
Theatrical participation, if any, in
the film.
Randall Emmett & Production services
George Furla provided include
Producers negotiating the financing
of the picture and its
distribution by NuImage.
$ - $ 12,000
Today You Die Steven Seagal Produced by a third party
financier. FMLY provided
December 2005 production services and
(Estimated Release) received a fee and profit
participation, if any, in
Video/Cable the film
Randall Emmett & Production services
George Furla provided include
Producers negotiating an acting
services agreement with
Steven Segal for the
picture and providing
consulting services during
development, and on
location during principal
photography.
$ - $ 200,000
Wonderland Val Kilmer, Produced by a third party
Kate Bosworth, financier. FMLY provided
October 2003 Lisa Kudrow, development services and
Josh Lucas & received a fee.
Theatrical Dylan Mcdermott
Randall Emmett & Production services
George Furla provided include
Executive Producers obtaining financing
and negotiating for the
distribution of the picture.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Loverboy Kyra Sdgwick, Produced by a third party
Kevin Bacon, financier. FMLY provided
May 2005 Sandra Bullock, development services and
Matt Dillon, received a fee.
Theatrical Oliver Platt &
Marissa Tomei
Randall Emmett & Production services
George Furla provided include
Co- Executive Producers consulting on the financing
and distribution of the
picture.
$ - $ -
Shottas Ky-Mani Marley, Produced by a third party
Spragga Benz, financier. FMLY provided
December 2005 Wyclef Jean, post-production services
(Estimated Release) & Louie Rankin and financing and will
receive a fee and profit
Video/Cable participation, if any, in
the film.
Randall Emmett & Production services
George Furla provided include
Co- Executive Producers consulting on the financing
and distribution of the
picture.
$ - $ -
Black Widow William Dafoe Produced by a third party
aka The Widows financier. FMLY provided
Lover development services
and received a fee.
March 2006
(Estimated Release)
Theatrical
Randall Emmett & Production services
George Furla provided include obtaining
Executive Producers financing, negotiating for
distribution of the picture,
and providing consulting
services during
development, and on
location during principal
photography.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
Lonely Hearts John Travolta, Produced by a third party
James Gandofini, financier. FMLY provided
March 2006 & Salma Hayek development services
(Estimated Release) and received a fee.
Theatrical
Randall Emmett & Production services
George Furla provided include
Co-Executive Producers negotiating an acting
services agreement for this
picture with John Travolta
and providing consulting
services during
development, and on
location during principal
photography.
$ - $ 100,000
Mercenary Steven Seagal Produced by a third party
financier. FMLY provided
April 2006 production services and
(Estimated Release) and received a fee.
Video/Cable 2005
Randall Emmett & Production services
George Furla provided include
Producers negotiating an acting
services agreement with
Steven Segal for the
picture and providing
consulting services during
development, and on
location during principal
photography.
Note: We do not have a
contract on this project;
and are uncertain about
profit participation.
$ - $ 300,000
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
16 Blocks Bruce Willis Produced by a third party
Mos Def financier. FMLY provided
May 2006 production services and
(Estimated Release) and received a fee.
2005. Additionally, we
Theatrical will receive a profit
participation, if any, in the
film.
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Bruce
Willis and the directing
services of Richard
Donner. Also provided
consulting services
during principal
photography and the post
production process.
$ - $ 625,000
Borderland Brian Presley Picture produced by FMLY
Jake Muxworthy in conjunction with a third
April 2006 Rider Strong party. FMLY retains
(Estimated Release) Sean Astin 50% ownership and
Theatrical Beto Cuevas receives royalties, if any.
Randall Emmett & Production services
George Furla provided include the
Producers negotiation of financing
and distribution of the
picture, and consulting
services during
development, during
principal photography,
and during post
production (to ensure
that the film was
completed on time and
within budget). $ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Wicker Man Nicolas Cage Produced by a third party
Ellen Burstyn financier. FMLY provided
April 2006 Leelee Sobieski production services and
(Estimated Release) will receive a producers
fee in the first quarter of
Theatrical 2006. Additionally, we
will receive a profit
participation, if any, in the
film. (This project is in
production with principal
photography having started
on July 28, 2005)
$ - $ -
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Nicolas
Cage and the directing
services of Neil
La Bute Also provided
consulting services
during principal
photography and the post
production process.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
The Contract Morgan Freeman Produced by a third party
John Cusack financier. FMLY provided
May 2006 production services and
(Estimated Release) will receive a producers
fee in the first quarter of
Theatrical 2006. Additionally, we
will receive a profit participation
, if any, in the film (This project is
In production with principal
photography having started
on July 11, 2005)
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Morgan
Freemand and John
Cusack and the directing
services of Bruce
Beresford Also provided
consulting services
during principal
photography and the post
production process.
$ - $ -
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Picture Fees Received
Initial Release Date Function Year ended June 30,
and Media Type Performed by FMLY (2)
Type of
Film Credit Received Principal Talent Production Services 2004 2005
88 Minutes Al Pacino Produced by a third party
financier. FMLY provided
September 2006 production services and
(Estimated Release) will receive a producers
fee in the first quarter of
Theatrical 2006. Additionally, we
will receive a profit
participation, if any, in the
film. (This project is in
production with principal
photography having started
on July 11, 2005)
Randall Emmett & Production services
George Furla provided include negotiating
Producer/ for the acquisition of the
Executive Producer rights in and to the screen-
play upon which the picture
was based as well as
the acting services
agreements of Al
Pacino and the directing
services of Jon
Avnet. Also provided
consulting services
during principal
photography and the post
production process.
$ - $ -
Royalties and other revenue 105,440 281,534 281,534
Total $ 745,435 $ 2,330,534 2,330,534
Revenue by Customer (5)
Nuimage/Millenium $ 571,511 $ 2,278,000 2,278,000
Lions Gate Films 60,000 -
Regent Films 76,979 -
Other 36,945 52,534 52,534
$ 745,435 $ 2,330,534 2,330,534
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(1) The following is a chronological history of film projects that were developed, packaged and/or produced by
FMLY for third party financiers (unless otherwise noted) and for third party distributors and have been either
produced, released or waiting to be released by third parties in fiscal years 2000 through 2004, and/or are
scheduled for release in fiscal 2005
(2) Substantially all production, financing, and motion picture related services provided by FMLY are performed
by Randall Emmett and George Furla, officers and significant stockholders of the Company. The primary
functions/services performed by Messrs. Emmett and Furla are as follows:
a) Seek creative material, acquire rights and arrange for writing the screenplay
b) Negotiate talent for the project (I.e. development, actors, directors and writers) and assist with
pre-production, post-production and packaging.
c) Negotiate distribution agreements, both domestic and foreign.
d) Arrange for the sale of film rights.
(3) This motion picture has been in release for greater than two years and FMLY does not expect it to yield
significant additional revenue.
(3-A) This motion picture has been in release for greater than two years and is in its second cycle of distribution.
FMLY anticipates that additional revenues from new distribution agreements.
(4) There is no assurance that any motion picture that has not yet been released, will be released, that a change
in the scheduled release dates of any such films will not occur, or that if such motion picture is released,
that it will be successful. FMLY has various additional feature films under development and there can be no
assurance that any project under development will be produced, or that if produced, that it will be released
or successful.
(5) FMLY conducts business with a limited number of customers and loss of any one of those customers could
have a negative impact on its results of operations.
News Releases
On October 5, 2005 FMLY confirmed that it would host its first-ever Investor Conference Call on October 6, 2005 at 1:15pm (Pacific). To participate in the conference call, interested individuals were instructed to dial (from the United States) 1 (800) 572-9850. Participants were informed that an operator would greet them and ask for the “Conference ID,” which is 999-42-10. Participants were also informed that they would be asked to identify themselves in advance for the “question and answer” portion of the Conference Call, which follows a brief presentation by President and Chief Executive Officer, George Furla, and Chief Financial Officer, Stanley Tepper.
On October 5, 2005 FMLY announced that it would host its first-ever Investor Conference Call on October 6, 2005 at 1:15pm (Pacific). President and Chief Executive Officer, George Furla, and Chief Financial Officer, Stanley Tepper will present the call. Following a brief statement by Messrs. Furla and Tepper, investors will then have an opportunity to ask questions. FMLY restated that the conference call dialing instructions. FMLY also stated that following the Investor Conference Call, FMLY would release a summary of the Conference Call for those unable to participate.
On September 27, 2005 FMLY announced that it would state its year-end results for fiscal year 2005 (Year ended June 30) on October 6, 2005 at 1:15pm (Pacific). Also on October 6, 2005, FMLY stated that it would host its first ever investor conference call. President and CEO, George Furla, and CFO, Stanley Tepper will present the conference call. Following a brief, investors will then have an opportunity to ask questions regarding FMLY and its upcoming projects. FMLY stated that participants would dial 1 (800) 572-9850 and request conference call ID number 9994210. FMLY had previously stated that an announcement of Year End results and the Investor Conference Call would be on an earlier date, but due to the additional requirements of Sarbanes-Oxley regulations, and FMLY`s external auditors, who are located in Houston, Texas, were affected by hurricane Rita thus delaying the audit. The June 30, 2005 audit will be completed around September 30, 2005. Therefore, management has elected to postpone the announcement of Year End results for fiscal year 2005 as well as the Investor Conference Call.
On September 9, 2005 FMLY announced that it would state its year-end results for fiscal year 2005 (Year ended June 30) on September 28, 2005. Also on September 28, 2005, Family Room will host its first ever Investor Conference Call. Chief Executive Officer, George Furla, and Chief Financial Officer, Stanley Tepper will present the conference call. Following a brief statement by the Messrs. Furla and Tepper, Investors will then have an opportunity to ask questions regarding Family Room Entertainment and its upcoming projects. FMLY had previously stated that an announcement of Year End results and the Investor Conference Call would be on an earlier date, but due to the additional requirements of Sarbanes/Oxley regulations, management has elected to postpone the announcement of year-end results for fiscal year 2005 as well as the Investor Conference Call.
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On July 19, 2005 FMLY announced in conjunction with a third party financier/distributor that Jon Avnet had signed on to direct “88 MINUTES,” based on Gary Scott Thompson’s original spec. Al Pacino will star in the picture 88 MINUTES, which focuses on a college professor who moonlights as a forensic psychiatrist for the FBI and receives a death threat claiming that he has only has 88 minutes to live. In order to save his own life, he must use all of his skills and training to narrow down the possible suspects, who include a disgruntled student, a jilted former lover, and a serial killer who is already on death row.
On July 6, 2005 FMLY announced that on September 22, 2005 it would announce the year-end results for fiscal year 2005 (Year ended June 30). Also on September 22, 2005, Family Room will host its first ever investor conference call. Chief Execute Officer, George Furla, and Chief Financial Officer, Stanley Tepper will present the conference call. Following a brief statement by the Messrs. Furla and Tepper, Investors will then have an opportunity to ask questions regarding Family Room Entertainment and its upcoming projects.
On June 28, 2005 FMLY announced that it had acquired the true-life story of “Rin Tin Tin” to produce as a feature length motion picture. FMLY had let a previous option on the “Rin Tin Tin ” property lapse, but elected to re-acquire the property and quickly move forward with production, which is slated to begin prior to the end of the calendar year. The original Rin Tin Tin puppy was saved from the remains of a bombed-out kennel during World War I. That little German Shepherd puppy grew up to become the star of 22 feature films and has been credited as one of Hollywood’s first true “stars.” The progeny of the original “Rinty,” as he was affectionately called sometimes, went on to star in numerous other movies and television series, making the 80 year span of the name, one of the longest running careers in Hollywood.
On June 15, 2005 FMLY announced in conjunction with a third party distributor and a third party financier that principal photography would begin on the new crime thriller “BORDERLAND” in and around Tijuana, Mexico. Based on true events, the film stars Brian Presley, Rider Strong, Jake Muxworthy, Martha Higareda, Roberto Sosa, Jose Maria Yazpik and Damian Alcazar. It is the story of three young men who end up on the wrong side of an ancient cult in Mexico.
On May 27, 2005 FMLY announced with a third party financier/distributor that they would remake of the 1985 George Romero classic zombie picture, “DAY OF THE DEAD.” The original picture, which was written and directed by George A. Romero, follows a group of scientists and military personnel living in an underground bunker while the world above them is over-run with zombies. Unfortunately for the scientists who have been doing gruesome experiments on the un-dead as well as the military personnel who have been falling victim to their “experiments,” the zombies have made their way into their protective bunker.
On May 13, 2005 FMLY announced that “MERCENARY”, starring Steven Seagal, had completed principal photography in Capetown South Africa.
On May 9, 2005 FMLY announced the status of several projects in development and/or slated for production in the near future. The following projects were stated to have scheduled start dates: (1) “LONELY HEARTS,” starring John Travolta, James Gandofini and Salma Hayek, began principal photography in Florida on March 24, 2005; (2) “MERCENARY,” starring Steven Seagal, began principal photography on April 11, 2005 in Capetown, South Africa; (3) ”16 BLOCKS,” starring Bruce Willis for director Richard Donner had begun principal photography; (4) “THE CONTRACT,” starring John Cusack and Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing, is set to begin principal photography on July 3, 2005; (5) “SATURDAY NIGHT SPECIAL” starring DMX was set to begin principal photography on July 5, 2005; and (6) “THE WICKER MAN” starring Nicolas Cage for director Neil LaBute is set to begin principal photography on July 15, 2005.
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On May 6, 2005 FMLY announced that principal photography had commenced on the Richard Donner directed “16 BLOCKS” which stars Bruce Willis and Mos Def. Based on a screenplay written by Richard Wenk, 16 BLOCKS follows Jack Mosley (BRUCE WILLIS) an aging cop assigned the mundane task of escorting a fast talking, wise-cracking young witness (MOS DEF) to the courthouse - sixteen city blocks away and the action-packed thrill-ride that takes place in those “sixteen blocks.”
On May 5, 2005 FMLY announced that it had reached an agreement in principal with Darryl J. Quarles to write two screenplays on a speculative basis. The pictures would be produced by FMLY’ Randall Emmett and George Furla in association with Quarles. Subject to cast, the pictures are slated for production in early 2006. Emmett and Furla are currently Executive Producing “LONELY HEARTS” starring John Travolta, James Gandolfini and Salma Hayek. Later this month, Emmett/Furla will commence principal photography on the Bruce Willis action-er, “16 BLOCKS” with Richard Donner (“LEATHAL WEAPON”&“MAVERICK”) directing. Quarles recently wrote “THE LOVE GOD” for Imagine Entertainment. Mary L. Aloe and Jeff Rice brought Quarles’ two pictures to Emmett/Furla Films. Aloe and Rice will also serve as Executive producers on the two pictures.
On April 14, 2005 FMLY announced the status of several projects in development and/or slated for production in the near future. The following projects were stated to have scheduled start dates: (1) “LONELY HEARTS,” starring John Travolta, James Gandofini and Salma Hayek, began principal photography in Florida on March 24, 2005; (2) “MERCENARY,” starring Steven Seagal, began principal photography on April 11, 2005 in Capetown, South Africa; (3) ”16 BLOCKS,” starring Bruce Willis for director Richard Donner was scheduled to begin principal photography on April 22, 2005; (4) “THE CONTRACT,” starring John Cusack and Academy Award winner Morgan Freeman with Academy Award Nominee Bruce Beresford directing, is set to begin principal photography on July 3, 2005; (5) “SATURDAY NIGHT SPECIAL” starring DMX is set to begin principal photography on July 5, 2005; and (6) “THE WICKER MAN” starring Nicolas Cage for director Neil LaBute is set to begin principal photography on July 15, 2005. The following projects have completed principal photography and are currently in post-production: (1) “THE TENANTS,” starring Dylan McDermott and Snoop Doggy Dogg; (2) “TODAY YOU DIE” starring Steven Seagal; (3) “SUBMERGED,” starring Steven Seagal; and (4) “THE WIDOW’S LOVER,” starring Willem Dafoe. Due to then currently marketplace lack of interest in the project “RIN TIN TIN”, FMLY elected not to further pursue third party financing and distribution for the project.
On March 25, 2005 FMLY announced that they had acquired the rights to remake the 1980 horror classic, TERROR TRAIN and had signed Ryan Elsinger to write the screenplay. Emmett/Furla Films was also in negotiations with a third party financier to fund the production of the picture. The picture was slated to begin pre-production in late summer. The original picture, which was directed by Roger Spottiswoode and starred Jamie Lee Curtis, follows a group of college coeds being terrorized by a masked killer during a New Year`s Masquerade on a chartered train.
On March 15, 2005 FMLY announced in conjunction with third party financiers that Bruce Willis had signed on to star in “16 BLOCKS” for director Richard Donner. The picture is scheduled to begin filming in Toronto and New York in late summer. Based on a screenplay written by Richard Wenk, 16 BLOCKS follows Jack Mosley (BRUCE WILLIS) an aging cop assigned the mundane task of escorting a fast talking, wise-cracking young witness to the courthouse - sixteen city blocks away and the action-packed thrill-ride that takes place in those “sixteen blocks.” FMLY also announced that the project “88 MINUTES” had been delayed pending a new start date.
On March 14, 2005 FMLY announced that it has executed an agreement with Platinum Disc Corporation to distribute the wholly owned motion picture titles “AFTER SEX” and “HELD FOR RANSOM” on Video and DVD within the United States. The announcement was a follow-up to the November 23, 2004 announcement from Emmett/Furla Films, a wholly owned subsidiary of Family Room Entertainment Corporation, whereby it was stated that its wholly owned titles “AFTER SEX” and “HELD FOR RANSOM” had completed their first cycle of distribution within the United States and all rights (including the television and the home video/DVD rights) had become available for re-licensing. A third-party, Lantern Lane Entertainment represented the two titles on behalf of FMLY.
On March 4, 2005 FMLY announced in conjunction with third party financiers that Nicolas Cage has signed to star in “THE WICKER MAN” for writer/director Neil LaBute. The picture was scheduled to begin filming in Vancouver in mid-July. The suspense thriller by Neil LaBute is a remake of the 1973 UK cult classic. THE WICKER MAN follows the story of Sheriff Edward Malus (NICOLAS CAGE) as he investigates the disappearance of a young girl on a remote island off the coast of Maine. Things and people are not as they seem on the island and when Sheriff Malus discovers evidence of pagan rituals his hope of unraveling the girl’s disappearance become increasingly uncertain. FMLY also announced that the project “RIN TIN TIN” has been abandoned project due to lack of marketplace response.
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On February 25, 2005, FMLY announced the status of several projects in development and/or slated for production in the near future. The following pro
Aus dem Ranging Bull Board:
By: n2rgi_az
10 Mar 2006, 12:52 AM EST
Msg. 9326 of 9330
Jump to msg. #
14.5 MIL by Wednesday + Thurs + Fri + Sat + Sun =
28-30 MIL
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
By: n2rgi_az
10 Mar 2006, 12:52 AM EST
Msg. 9326 of 9330
Jump to msg. #
14.5 MIL by Wednesday + Thurs + Fri + Sat + Sun =
28-30 MIL
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
BID steigt schon, 180000 Stück in Berlin zu 0,013
BID 150000 zu 0,014, es geht voran, kommen die Einspielergebnisse noch heute?
ASK auch schon bei 0,019, 40000 Stück
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