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HALL TRAIN ENTERTAINMENT INC.
FINANCIAL STATEMENTS
WITH NOTICE TO READER
SEPTEMBER 30, 1998
British Columbia Securities Commission
Quarterly Report Form 61
Issuer Details
Hall Train Entertainment Inc. ("Hall Train") - November 25, 1998 - Third Quarter
Registered Office - Suite 200, 258 Adelaide Street East, Toronto, Ontario M5A 1N1
Telephone: (416) 955-9007
Executive Office - Suite 200, 258 Adelaide Street East, Toronto, Ontario M5A 1N1
Telephone: (416) 955-9007
Contact Person - Matteo Bossio
Contact Telephone - (416) 955-9007
CERTIFICATE
The three schedules required to complete this third quarter are attached and the disclosure contained therein has been approved by the Board of Directors. A copy of the Quarterly Report will be provided to any shareholder who requests it.
Director's Signature Print Full Name Date Signed
__________________ Matteo Bossio November 25, 1998
__________________ Laurie Keller November 25, 1998
HALL TRAIN ENTERTAINMENT INC.
INDEX TO FINANCIAL STATEMENTS
________
Page
Notice to Reader 1
Balance Sheet 2
Statement of Deficit 3
Statement of Operations 4
Statement of Changes in Financial Position 5
Supplementary Information 6
NOTICE TO READER
We have compiled the balance sheet of Hall Train Entertainment Inc. as at September 30, 1998, the statements of operations, deficit and the statement of changes in financial position for the period then ended from information provided by management. We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. Readers are cautioned that these statements may not be appropriate for their purposes.
North York, Ontario Canham Rogers
November 25, 1998 Chartered Accountants
HALL TRAIN ENTERTAINMENT INC. SCHEDULE A
BALANCE SHEET
________
As at As at
September 30 September 30
1998 1997
ASSETS
CURRENT ASSETS
Cash $35,203 $79,663
Accounts receivable 126,903 175,756
Prepaid expenses and deposits 5,588 8,239
167,694 263,658
CAPITAL ASSETS
Production equipment 189,652 145,143
Office furniture and equipment 32,245 27,899
Exhibits 35,687 -
257,584 173,042
Accumulated depreciation (115,091) (75,084)
142,493 97,958
$310,187 $361,616
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $245,943 $321,837
Bank loan payable 18,720 -
264,663 321,837
SHAREHOLDERS' EQUITY
Share capital 1,106,744 1,096,744
Deficit (1,061,220) (1,056,965)
45,524 39,779
$310,187 $361,616
Approved by: ___________________________________
HALL TRAIN ENTERTAINMENT INC.
STATEMENT OF DEFICIT
________
For the 9 For the 9
Months Ended Months Ended
September 30 September 30
1998 1997
DEFICIT, BEGINNING OF THE PERIOD $(1,057,678) $(1,183,759)
NET INCOME (LOSS) FOR THE PERIOD (3,542) 126,794
DEFICIT, END OF THE PERIOD $(1,061,220) $(1,056,965)
HALL TRAIN ENTERTAINMENT INC.
STATEMENT OF OPERATIONS
________
For the 9 For the 9
Months Ended Months Ended
September 30 September 30
1998 1997
REVENUE $1,284,701 $1,425,671
EXPENSES
Contractor fees, salaries and benefits 796,578 685,953
Production costs 225,301 220,266
General and administration 198,598 328,452
Professional fees 41,375 47,185
Depreciation 26,391 17,021
1,288,243 1,298,877
NET INCOME (LOSS) FOR THE PERIOD $(3,542) $126,794
HALL TRAIN ENTERTAINMENT INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
________
For the 9 For the 9
Months Ended Months Ended
September 30 September 30
1998 1997
CASH PROVIDED BY OPERATING ACTIVITIES
Loss for the period $(3,542) $126,794
Items not affecting cash:
Depreciation 26,391 17,021
Changes in non-cash working capital (17,431) (130,496)
5,418 13,319
CASH USED IN INVESTING ACTIVITIES
Purchase of capital assets (49,982) (44,622)
CASH PROVIDED BY FINANCING ACTIVITIES
Issuance of capital stock 10,000 158,167
Increase (decrease) in loans payable - (45,396)
10,000 112,771
INCREASE (DECREASE) IN CASH (34,564) 81,468
CASH (BANK INDEBTEDNESS), BEGINNING OF THE PERIOD* 51,047 (1,805)
CASH, END OF THE PERIOD* $16,483 $79,663
* Cash consists of cash less bank loan payable.
HALL TRAIN ENTERTAINMENT INC. SCHEDULE B
SUPPLEMENTARY INFORMATION
FOR THE 3 MONTHS ENDED SEPTEMBER 30, 1998
________
1. There were no payments to parties not at arm's length to Hall Train Entertainment Inc. during the period other than management salaries and subcontracting fees for services rendered.
2.(a) The company issued no common shares during the period.
2.(b) There were no options granted during the period.
3.(a) Common shares issued and outstanding as at September 30, 1998 are as follows:
Authorized
Unlimited number of common shares without par value
Unlimited number of preferred shares without par value
Issued
15,980,085 common shares
3.(b) There were no options and warrants outstanding on September 30, 1998.
3.(c) There are no shares held in escrow or subject to a pooling agreement.
3.(d) Directors and Officers
Matteo Bossio - President, Secretary & Director
Peter Cole - Director
Allan Garner - Director
Lawrence (Laurie) Keller - Director
Unaudited - see Notice to Reader and Accompanying Notes
Management Discussion Schedule C
To the Shareholders of Hall Train Entertainment Inc.
Hall Train Entertainment Inc. (HTE) held its Annual General Meeting on June 25, 1998 and the tabled agenda plus the Officers and Board of Directors were unanimously approved. In order to diversify and expand HTE through its subsidiary, Hall Train Moving Pictures Ltd. (HTMP) is actively seeking new business and strategic alliances. This will increase its revenue base thus increasing shareholder value.
HTE is steadily broadening its entertainment industry visibility and creative expertise - through art direction and design, animation and special effects, film and video production, 3D tooling, fabrication and animatronics.
On-going and concluded business:
. The Company continues to provide creative services to Universal Studios as part of a multifaceted contract to support the planned expansion of the "Islands of Adventure" (set to open in 1999) at Universal City, Orlando, Florida. We are in the final stages of Phase III covering fabrication, sculpting, design, creative, art direction and animatronics. Spar Space Systems, a division of Spar Aerospace, is working with us to assist in the development of the "state of the art" animatronics required for the creature we are creating. Also, we have obtained additional fabricating and sculpting contracts from Universal, which are ongoing. Other creative opportunities exist for us to potentially obtain even more services.
. "Mamenchisaurus" the 65 foot scientifically accurate sculpture that the Company created and built in 1997 for the "The Dinosaurs of Jurassic Park:The Lost World" travelling exhibit, is still touring the U.S.A. It successfully completed the journey from Hartford, CT to Baltimore, MD where it is displayed on the waterfront outside of the Maryland Science Center. Its arrival created tremendous interest from patrons resulting in wide media coverage in the local newspapers and on radio and television.
. "The Time Machine", a unique 3-D Interactive Dinosaur Habitat we designed and created for "The Academy of Natural Sciences" in Philadelphia is still the Academy's key attraction of its highly successful exhibit, "Discovering Dinosaurs". It continues to be critically acclaimed by enthusiastic museum visitors.
. HTMP is nearing completion of the production of the 24 animated episode segments for the PBS/TVO television series "Zoboomafoo". In addition, we were retained to do more post-production work to finalize the segments. Working in association with Chris and Martin Kratt of "Kratts' Creatures" fame, HTMP develops sets and animal characters with a focus on introducing them to pre-school children in a fun and informative way. The series is scheduled to air in 1999. The new Production Company, Mangatsika Inc. has expressed interest in HTMP doing a sequel for this television series next year.
. The 600-pound "Albertosaurus" sculpted metal dinosaur we installed in the "Edge Arcade" at the CN Tower, Toronto is still on display for general public viewing. This is part of Phase I of a two phase $26 million TrizecHahn - CN Tower expansion and revitalization plan designed to make the world's tallest building one of the world's greatest entertainment attractions. We look forward to the possibility of playing a bigger role in Phase II.
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