SEC Filing Summary: Century Park Pictures Corporation (10-Q)
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2000, for Century Park Pictures Corporation. The registrant is a shell company with no ongoing operations, having disposed of its primary operating subsidiaries (International Theatres Corporation and Willy Bietak Productions, Inc.) in the prior fiscal year. The company currently consists primarily of administrative overhead and debt obligations.
Key Financial Metrics
- Revenue: $0 (No operating revenue reported).
- Net Loss (Quarter Ended June 30, 2000): $12,897.
- Net Loss (Nine Months Ended June 30, 2000): $38,690.
- Cash Position: $57 as of June 30, 2000.
- Working Capital: Deficit of $1,262,786.
- Stockholders' Equity: Deficit of $1,262,786.
- Debt: Notes payable of $400,000; Accrued compensation of $354,500; Accounts payable and accrued expenses of $509,169.
- Cash Flow: Cash used in operating activities for the nine-month period was $72.
Material Changes vs. Prior Period
- Administrative Expenses: Decreased significantly to $24 for the quarter ended June 30, 2000, compared to $730 in the same period in 1999. This reduction is attributed to lower bank charges.
- Interest Expense: Decreased to $12,873 for the quarter (2000) from $15,000 (1999), reflecting interest on notes payable.
- Discontinued Operations: The prior year (1999) included income from discontinued operations ($34,307 for the quarter), whereas the current period has no such activity.
- Liquidity: Cash used in operating activities for the nine-month period dropped to $72 from $73,633 in the prior year, primarily due to the cessation of significant operational outflows.
Outlook, Risks, and Management Commentary
- Going Concern Doubt: Independent auditors have raised substantial doubt regarding the company's ability to continue as a going concern due to recurring losses, a stockholders' deficit, and lack of ongoing operations.
- Future Strategy: Management intends to seek potential acquisitions to generate cash flow but acknowledges no assurances of success or acceptable financing terms.
- Historical Subsidiary (The Pike): The company's former arena football franchise, "The Pike," ceased operations in 1996. Management is evaluating liquidation, either in or out of bankruptcy court. Approximately $302,000 of current liabilities relate to this entity.
- Financing: The company received $100 in advances from the CEO during the nine-month period. The $400,000 in notes payable is secured by the stock of the defunct subsidiary, with management anticipating a potential conversion to common stock, though not guaranteed.
- Capital Expenditures: No material commitments exist; future capital expenditures are expected to be immaterial.
Investor Verification Checklist
- Verify the status of the $400,000 notes payable and the likelihood of conversion to equity versus enforcement of debt.
- Confirm the specific liabilities associated with "The Pike" and the timeline for potential liquidation proceedings.
- Assess the viability of management's plan to acquire a new operating company given the current cash balance of $57.
- Review the $354,500 in accrued compensation to determine if this represents a claim by the CEO or other parties.
- Monitor for any updates on the "substantial doubt" regarding the company's going concern status raised by auditors.