"The Company had limited cash deposits. Based on the Company’s expectations as to future performance, the Company considers these resources and existing and anticipated credit facilities, to be inadequate to meet the Company’s anticipated cash and working capital needs at least through January 31, 2015. The Company, however, expects to be able to raise capital to fund the Company’s operations, current and future acquisitions and investment in new program development. The Company may also need to raise additional capital to fund expansion of the Company’s business by way of one or more strategic acquisitions. Unless the Company’s results improve significantly, it is doubtful that the Company will be able to obtain additional capital for any purpose if and when the Company needs it.
The Company depends heavily on the Company’s senior management who may be difficult to replace.
The Company believes that the Company’s future success depends to a significant degree on the skills, experience and efforts of its chairman, CEO, and other key executives. Any of these executives would be difficult to replace. While all of them have incentives to remain with the Company, they are not bound by employment contracts, and there is no assurance that either of them will not elect to terminate their services to us at any time.
Increasing the Company’s business depends on the Company’s ability to increase demand for the Company’s products and services.
While the Company believes that there is a market for its planned increase in the Company’s products and services, there is no guarantee that the Company will be successful in its choice of product or technology or that consumer demand will increase as the Company anticipates.
The Company may be exposed to significant costs of defense and damages in litigation stemming from current unresolved legal proceedings undertaken in the future by and against the Company.
The Company could be subject of legal proceedings against the Company that could give rise to significant exposure in costs and damages.
The Company’s ability to operate and compete effectively requires that the Company hires and retain skilled marketing and technical personnel, who have been in short supply from time to time and may be unavailable to us when the Company needs them.
The Company’s business requires us to be able to continuously attract, train, motivate and retain highly skilled employees, particularly marketing and other senior management personnel. The Company’s failure to attract and retain the highly trained personnel who are integral to the Company’s sales, development and distribution processes may limit the rate at which the Company can generate sales. The Company’s inability to attract and retain the individuals the Company needs could adversely impact the Company’s business and its ability to achieve profitability.
The Company may suffer from a business interruption and continuity of its ongoing operations might be affected.
The Company has proven the business model on all three verticals prior to opening up The Movie Studio, a 7200 Sq. Ft. state of the art production studio in downtown Ft. Lauderdale,
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complete with 24X36 green screen, infinity wall, edit suites, complete motion picture manufacturing lighting and equipment, cameras make-up station, talent division, and in-house marketing. The Movie Studio has manufactured its first feature film production for Ventures Capital Partners, LLC. Is titled Exposure starring Corey Feldman and is currently in pre-production of the sequel Double Exposure. In addition, The Movie Studio can generate additional revenue streams from studio rentals and music video production. The Company
is currently fully operational and implementing its business model to scale the Companies operations in 2013 and beyond. The Company changed its name of operations from Destination Television, Inc. to The Movie Studio, Inc. In November, 2012 and has applied for a new stock symbol, requesting: (MOVI).
