Excerpts from Management Discussion of 10Q:
Relevant Excerpts from Management Discussion of 10Q:
STATEMENT OF MANAGEMENT
1(A)
During the quarter, the Company and it's Co-Producing partner, Syracuse
Productions, LLC, have been screening their film "FREAK TALKS ABOUT SEX"
for potential distributors and purchasers of rights in the film. In
October, the film was screened at the Hamptons International Film
Festival and placed second in the audience choice awards and received an
Honorable Mention from the jury, which included the actor, William Hurt.
After the end of the quarter, the producers agreed in principle with HBO
for a debut of the film as a Cinemax Friday Night Premiere starting
December 17, 1999. The producers believe that the wide exposure the film
will receive by the limited screening on Cinemax will enhance the
subsequent sale of other rights in the film, including home video,
foreign, internet and other television and does not preclude a theatrical
release of the film.. "FREAK TALKS ABOUT SEX" is a comedy starring Steve
Zahn, who has recently appeared in "OUT OF SIGHT" and "YOU'VE GOT MAIL"
and will star in the current Miramax film "HAPPY TEXAS" and Josh
Hamilton, who has recently appeared in the NBC mini-series "THE 60'S."
The Company owns one-third of the profits of the film after the investors
recoup their investment plus twenty percent (20%). For proprietary
reasons, the Company may not disclose the budget of the film and by
contractual provision may not disclose the amount received from HBO for
the rights to the film..
The Company continued pursuing production of its film property "THE
GODMOTHER" (formerly "RESPECT YOUR GODFATHER"). The film is a comedy
co-written by, among others, Joel and Ethan Coen, who have previously
written "RAISING ARIZONA," "THE BIG LEBOWSKI" and "FARGO." The Company
has received letters of intent, subject to availability and negotiation
of contract terms, to appear in the film from Katherine Helmond, star of
television's "SOAP" and "WHO'S THE BOSS?", Alex Rocco, best known for his
role as Moe Green in "THE GODFATHER" and Max Casella, co-star of the
recent feature film "ANALYZE THIS" and "DOOGIE HOWSER" on television.
Both Helmond and Rocco starred in the Company's previous film, "LADY IN
WHITE." The Company is attempting to raise financing for production of
the film.
During the first quarter of 1998, the Company acquired a forty percent
(40%) interest in the business called The Movie Place, which owns and
operates the Internet site "movieplace.com." The Web site features movie
reviews and interviews with movie stars by nationally syndicated movie
reviewer Mike Cidoni, along with links to movie trailers and movie
showing times around the country. Successful coverage of "STAR WARS: THE
PHANTOM MENACE" and "SOUTH PARK" have significantly raised the page views
of the site. The site has retained an advertising broker to procure
additional advertising. The interest was purchased for $25,000.00, which
The Movie Place will expend to enhance and market the Web site and for
working capital. The Company procured the funds for the investment by a
loan on a promissory note from its Chairman and President, Carl R.
Reynolds. The Promissory Note is in the amount of $25,000.00, payable on
demand and bears interest at the rate of ten percent (10%) per annum. A
copy of the Promissory Note and the Agreement with The Movie Place were
annexed to the Form 10-Q for the period ending March 31, 1999. The
Company hopes to help develop the site into a significant Web site of
interest for movie fans and as an agent for raising production funds for
independent films by the Company and others. During the quarter,
Movieplace.com, Inc. began developing plans to debut a movie critics
program weekly on the internet site starting in early 2000. The program
will consist of a panel of movie critics, including Movie Place's own
critic, Mike Cidoni, discussing recently released films. The ultimate
goal would be to have the program syndicated as a weekly television
show..
The Company entered into a distribution agreement for a so-called
"Director's Cut" of its feature film "LADY IN WHITE" which was released
on DVD format during the first quarter of 1998. All remaining outstanding
distribution agreements on the film expire in 2002 or 2003, at which time
all rights will revert to the Company.
The Company has title to and/or interests in the following feature film
properties, which are in development or completed: "FREAK TALKS ABOUT
SEX", "THE GIANT" and "THE GODMOTHER". The Company has released two
feature films: "FEAR NO EVIL" and "LADY IN WHITE". The Company was also
an investor, in 1989, in a feature film entitled "GRAVE SECRETS",
produced by Planet Productions, Inc. |
