SEC Filing Summary: Century Park Pictures Corporation (10-Q)
Business Context and Reporting Period
This filing is a Quarterly Report (Form 10-Q) for the period ended March 31, 2001. The registrant is Century Park Pictures Corporation, a Minnesota corporation. The company currently has no ongoing operations and is primarily engaged in administrative activities while seeking potential acquisitions. The company holds a significant stockholders' deficit and has received a "substantial doubt" going concern opinion from its auditors.
Key Financial Metrics
- Revenue: $0 (No revenue reported for the quarter or six-month period).
- Net Loss: $13,850 for the three months ended March 31, 2001; $28,778 for the six months ended March 31, 2001.
- Operating Expenses: $975 for the quarter (primarily administrative); $3,028 for the six months.
- Interest Expense: $12,875 for the quarter; $25,750 for the six months.
- Cash Flow: Net cash used in operating activities was $3,029 for the six months ended March 31, 2001. Cash provided by financing activities (advances from CEO) was $2,996.
- Liquidity: Cash balance is $0 as of March 31, 2001.
- Debt and Liabilities: Total current liabilities are $1,312,030. This includes $400,000 in notes payable, $279,686 in accounts payable, and $354,500 in accrued compensation.
- Working Capital: Deficit of $1,311,104.
- Stockholders' Equity: Deficit of $1,311,104.
Material Changes vs. Prior Period
- Administrative Expenses: Increased significantly from $25 in the quarter ended March 31, 2000, to $975 in the current quarter.
- Net Loss: Increased from $12,900 in the prior year quarter to $13,850 in the current quarter.
- Cash Position: Cash decreased from $33 at the beginning of the period to $0 at the end of the period.
- Related Party Advances: The company received $2,996 in advances from the CEO during the six-month period, compared to $100 in the prior year period.
Outlook, Risks, and Management Commentary
- Going Concern: Independent auditors have raised substantial doubt regarding the company's ability to continue as a going concern due to recurring losses, a stockholders' deficit of over $1.28 million, and lack of ongoing operations.
- Future Strategy: Management intends to seek potential acquisitions to generate cash flow. However, there are no assurances that acquisitions will be completed or that financing will be obtained.
- Historical Subsidiary (The Pike): The company previously operated an arena football franchise ("The Pike") which ceased operations in 1996. Approximately $302,000 of current accounts payable relates to this entity. Management is evaluating liquidation of this subsidiary.
- Debt Conversion: $400,000 in notes payable secured by the stock of the former subsidiary may be converted into common stock, though this is not guaranteed.
- Capital Expenditures: No material commitments for capital expenditures exist, and future 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.
- Confirm the specific plans and timeline for potential acquisitions intended to restore operations.
- Assess the validity and collectibility of the $302,000 liability related to the defunct "The Pike" subsidiary.
- Review the company's ability to meet accrued compensation obligations of $354,500 with zero cash on hand.
- Investigate the source and terms of the $2,996 advance from the CEO.