6. Notes Payable Under Film Participation Agreements
To finance funding of film projects, FMLY has obtained advances from outside investors that want to participate in specific projects. During the year ended June 30, 2005, we received an aggregate of $4,929,719 from Tau Entertainment (Elisa Salinas) and Scorched Earth Entertainment for investment in specific projects.
During the nine months ended March 31, 2006 FMLY received $800,000 of advances from E F F Partners LLC, $72,500 of advances from Scorched Earth Entertainment, and $125,000 of advances from Freedom Films. As of March 31, 2006 the balance outstanding of notes and loans payable under film participation agreements are as follows:
posted
I like the fact they released this today before open!!
Revenue Recognition
Revenue from the distribution of motion pictures is recognized as earned under the criteria established by SOP 00-2. FMLY’s revenue cycle is generally one to three years, with the expectation that substantially all revenue will be recognized in the first two years of individual motion pictures. In accordance with SOP 00-2, FMLY considers revenue earned when all of the following have occurred:
• FMLY has a valid sale or licensing agreement in place. • The motion picture is complete and in accordance with the agreement with the customer. • The motion picture has been delivered or is deliverable. • The license period has begun. • The revenue is fixed or determinable and collection is reasonably assured.
We recognize revenue from various sources under the criteria established by SOP 00-2 as follows. __________________
posted
Excellent!numbers are on the money with the previous projections expected.
This is interesting...
Estimated future cash requirements
FMLY's estimate of net cash requirements for overhead for the next twelve months subsequent to March 31, r 2006, is approximately $115,000 (includes the above fixed cost estimate of $76,400) a month for a twelve month total of $1,380,000.
The estimate of cash in flow (net of film cost and fees) from operations for that time period from projects currently in place is estimated to be approximately $2,000,000. We are unable to estimate beyond this twelve month period because we are still in negotiation on a number of projects.
posted
In May 2006 an investor loaned the FMLY $400,000 for period of one year effective April 1, 2006 for which FMLY received net of interest, $375,000.
In May 2006, we received $1,000,000 for bonus producer fees of which $600,000 was paid out to executive officers under their contractual arrangements
posted
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: (1) Emmett/Furla Films Productions Corporation (“EFFP”), a California Corporation involved in motion picture development, production, and production related services for high budget motion pictures (in excess of $20,000,000). EFFP’s subsidiary, Good Entertainment Service, Inc. (“GESI”), a Delaware Corporation, was originally a production servicing company and produced one motion picture “Good Advice” in the year 2000. Currently GESI 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).
posted
6. Notes Payable Under Film Participation Agreements
To finance funding of film projects, FMLY has obtained advances from outside investors that want to participate in specific projects. During the year ended June 30, 2005, we received an aggregate of $4,929,719 from Tau Entertainment (Elisa Salinas) and Scorched Earth Entertainment for investment in specific projects.
During the nine months ended March 31, 2006 FMLY received $800,000 of advances from E F F Partners LLC, $72,500 of advances from Scorched Earth Entertainment, and $125,000 of advances from Freedom Films. As of March 31, 2006 the balance outstanding of notes and loans payable under film participation agreements are as
Estimated future cash requirements
FMLY's estimate of net cash requirements for overhead for the next twelve months subsequent to March 31, r 2006, is approximately $115,000 (includes the above fixed cost estimate of $76,400) a month for a twelve month total of $1,380,000.
The estimate of cash in flow (net of film cost and fees) from operations for that time period from projects currently in place is estimated to be approximately $2,000,000. We are unable to estimate beyond this twelve month period because we are still in negotiation on a number of projects.
In May 2006 an investor loaned the FMLY $400,000 for period of one year effective April 1, 2006 for which FMLY received net of interest, $375,000.
In May 2006, we received $1,000,000 for bonus producer fees of which $600,000 was paid out to executive officers under their contractual arrangements
Nine Months Ended March 31, 2006 Versus Nine Months Ended March 31, 2005
The Company’s operating revenue for the nine months ended March 31, 2006 was $2,431,028, as compared to $1,382,522 for the same period ended March 31, 2005 for an increase of $1,048,506 (75%). The increase was mainly attributed an increase in distribution revenue of $1,405,394, and film production fees of $5,250, offset by a decrease in royalties of $250,138 and a decrease in producer fees of $112,000.
Costs relating to the operating revenues i.e. film amortization and/or film write-off costs) were $2,755,032 for the nine months ended March 31, 2006 as compared to 1,024,185 for the same period ended March 31, 2005 for an increase of $1,730,847 (169%). These costs mainly consist of film amortization and write off of film costs for the respective time period ( See Note 5).
The Company's gross margin for the nine-month period ended March 31, 2006 was $(334,004) as compared to $358,337 for the same period ended March 31, 2005 for a reduction of $692,341 (191%). The reduction in gross margin is directly attributable to an increase in film amortization. .
posted
with a major revenue increase and they look like they will be debt free by no later then November but could be debt free by June 30th!This is pretty much right where we expected though and thats what I like along with the info on the previous films and percentages.An increase across the board in revs is a big plus and the direction the company is going is now clear.
Gangsta rapper 50 Cent has made an uncharacteristic appearance in Cannes to promote his latest film. Home Of The Brave, 50's second feature film, is about US soldiers returning home from Iraq. The body-building rapper, who is said to have been shot nine times in real life, says filming in a war zone gave him a whole new perspective on fear. He said that God told him he was going to die, saying: "Being able to go perform and get back on a plane and leave as soon as possible based on what he said to me - it's a whole 'nother experience." The Irwin Winkler-directed film looks at the trauma of US troops returning home from the war. Initially reluctant to cast the rapper because of his image, Winkler was very impressed when he met 50. Winkler said he admired the muscular artist's talent and said: "I found a different man from what the media had pictured." 50 Cent has already enjoyed film success with the autobiographical work Get Rich Or Die Tryin. http://www.itv.com/news/entertainment_484325.html
posted
take a look at the revenue recognition on page 10... "substantially all revenue will be recognized in the first 2 years of individual motion pictures. "
As we can see it takes some time for the sales cycle to go from theatres to DVD's and such. But as they build a pipeline they will make monthly recurring revenue from royalties and that is a very nice thing.
posted
just stopped back in and now have to head out to another one of our sites for a short time,hope to be back within the hour. I figure the "sell on news" will take place the first hour or so anyway.
posted
I tried to add to my pot but it doesn't appear anyone is selling. Maybe the MMs are just accummulating for the climb.
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posted
I have not received a message concerning the 10Q so it may not be public knowledge yet to really drive the price.
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posted
looks like we are getting hit with some very undecided direction at the moment based on some of the selling,I do wish they would have included more from 16 Blocks but considering the timeline for income from all the avenues in movie production and release I guess we will get quite a good portion of it during the4 next quarters.This is probably going to flip flop around .015's to .02's for a day or two unless something pops up in the expected 8-k or PR.
posted
As a result of an accounting error in applying the proper accounting treatment in the recording of convertible notes and warrants and their related debt derivatives pursuant to EITF 19 and SFAS 133 which resulted in significant changes in the financial statements, those financial statements should not be relied upon. Accordingly, Family Room Entertainment Corporation restated its June 30, 2005 year end financials and it March 31, 2005 financials in this Form 10QSB (see Footnote 8) and will restate the September 2005 and December 2005 10QSB’s financial results prospectively. A Form 8-K with be filed shortly.
At the risk of over simplifying, I offer you the this. The gang at FMLY want to make money to spend money on future projects. They indeed want to be a significant player in the films industry. Lions Gate is now around $9 and George and Randal would enjoy FMLY's pps at that level. They would make $$$$$$$$$$$$$$$ and so would we. SPA would do very well They are not old and are in this to be a couple of names in that industry. Some are fee based, some are performance based, & some might be a combination. I truly beleive they want what we do and are doing a good job staying involved with quality movies with above average to superior talent. Bruce Willis was super in 16 Blocks and that film should have done much better at the box. I trust that was not insulting or results in my own demise.
Good day and Trade well
also
40 to 50% of what FMLY makes goes to the bottom line for shareholders. Given that the executive officers do not draw a salary, it is a fair deal. I prefer that they are 100% motivated to increase the revenues if they want to see any pay:
9. Related Party Transactions
On a majority of the projects FMLY undertakes, FMLY’s chief executive officer and chief operating officer have contractual arrangements with FMLY that provide for their compensation base to be 20% to 30% - George Furla and 30% to 33% - Randall Emmett) of the net producers fees earned by the Company. Net producers’ fees are gross fees, less approved direct costs incurred by FMLY to provide the underlying services. During the nine month period ended March 31, 2006, these executive officers received compensation totaling $709,895, under these contractual arrangements. This compensation is reflected in the cost of the related film project and is ultimately recognized as operating cost-amortization of film costs in the statement of operations.
posted
I would think this would start moving up slowly. This drop is concerning. Just wondering who is doing the selling.
Posts: 156 | Registered: Dec 2005
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posted
hey I just had to run by the house and check on this and my Harley is still running out front...LOL...hey guys just look at IPRE and SSSU and then you will see how much support we have.The company is quite visible and now everyone know (per the filing) just what we actually have....this will be back in the .02's and hopefully higher by late tomorrow imo.....its the penny world,this is what happens!
posted
With the pull back yesterday I believe we should get a solid bounce today. If the 10Q comes out in the news then we should get a solid run. Look for it.
Posts: 156 | Registered: Dec 2005
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posted
IMO this filing was flat in comparison of the projected revs for the next 2 that will contain the major flicks.Believe me if the 10-Q was even partially bad we would be down to a flat penny not long after open yesterday.The company in this filing clearly put their business plan right in out face and with the projects completed and projects in the works this stock is actually an investment and not a trader at all.Now unless they start pumping out S-8's for no reason I don't plan on selling a single share here,I am fine letting it sit because I know at some point down the road it will prove EXTREMELY profitable.
FMLY did in the first 9 months $2,431,028 vs $2,331,000 for all of last year (12 Months) ending June 30, 2005 and $745,000 for 2004 $1,005,000 for 2003 $816,000 for 2002 Just a big difference (I might be reading this wrong)) We could easily hit 4M for the year with so much in production and also considering the last 2 quarters sucked with the income.... I just have a feeling that its just a matter of time....
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heres what happens on a day like yesterday.....by Thursday this all will be differant,this is a very short term fluctuation....BTW the RSI is bearish today but will likely lean Bullish late tomorrow....http://www.stockta.com/cgi-bin/analy...nd=&mode=stock
man as much as I don't like charting OTCbb's this damn FMLY is acting more like a big board play per the charts.
Composite Indicator -- Signal -- -- Strength -- -- Direction -- Trend Spotter (TM) Hold Falling
Short Term Indicators 7 Day Average Directional Indicator Sell Minimum Strongest 10 - 8 Day Moving Average Hilo Channel Sell Weak Weakest 20 Day Moving Average vs Price Sell Minimum Strongest 20 - 50 Day MACD Oscillator Buy Average Strongest 20 Day Bollinger Bands Hold Bearish
Short Term Indicators Average: 40% - Sell
Medium Term Indicators 40 Day Commodity Channel Index Hold Bearish 50 Day Moving Average vs Price Sell Minimum Strongest 20 - 100 Day MACD Oscillator Buy Minimum Strengthening 50 Day Parabolic Time/Price Sell Average Strongest
Medium Term Indicators Average: 25% - Sell
Long Term Indicators 60 Day Commodity Channel Index Hold Bearish 100 Day Moving Average vs Price Buy Minimum Weakest 50 - 100 Day MACD Oscillator Buy Minimum Weakest
posted
That is where I am sitting is the long term. With all of the projects they have in the works it can do nothing but soar.
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