RESULTS OF OPERATION.
During fiscal year-ending February 28,2005, the company incurred a loss of ($292,529) compared to a loss of ($418,905) for the prior year. The Company had revenues of $4,700 for 2005 and $15,000 for 2004. Costs and expenses were $241,787 for 2005 and $385,149 for 2004. Loss per share of $(0.011) for 2005 and $(0.017) for 2004. The decrease is primarily due to having an increase in the amount of shares outstanding.
The Company's library of shows and developed projects are the principal assets of the Registrant. The Registrant had produced and aired "Masters of the Martial Arts" a weekly series that aired for two years on ICN (International Channel Network). The previous and other shows developed and produced by the company are currently not airing or generating income.
Registrant has sustained operations with limited revenues during a period that's been devoted primarily to design, development, and packaging of its anticipated productions. The Registrant has created the primary marketing tools supported by websites and advertising campaigns for the upcoming infomercial "Intervention". Management has developed relationships with various media buyers and public relations firms to distribute its shows and has secured vendors to supply various products to be used as added value in the marketing of its infomercials and television shows.
There was no Federal Tax expense for the year ended February 28,2005. The Registrant has a tax loss benefit to carry-forward of approximately $2,900,000 which is available to offset future tax liabilities.
LIQUIDITY AND CAPITAL RESOURCES
For the fiscal year ended February 28,2005 cash flow came from the issuance of common stock ($18,000) and from advances from shareholders. Cash expended on operating expenses was $241,787.
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The Company has devoted significant time, effort and resources to obtain private funding to fund the development, production and distribution of our infomercials and television programs. Assuming that expenses remain at the current level, additional cash will be required to complete production and air existing projects in place. The Company will require approximately $1,000,000 of additional operating capital during the fiscal year ending February 28, 2006. The Company intends to secure funds with the release of a private placement; but, it is uncertain whether the required financing will be secured under favorable terms.
BUY BUY BUY
None
RISK FACTORS
The Company's business is subject to numerous risk factors, not all of which can be known or anticipated and any one of which could adversely impact the Company or its financial condition. Risk Factors include:
Failure to License: Renew Licenses or Production Agreements
AI
