----

| [X] | Annual      report pursuant to section 13 or 15(d) of the Securities Exchange Act of      1934 for the fiscal year ended June 30,2008 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

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|                          |   | June      30, |
|-------------------------------|--------|---------------|
| Major      Customers          |   | 2008          |   | 2007 |
| NuImage/Millennium Films |   | 59.59%        |   | 98.97% |
| Lions      Gate Films         |   | 27.86%        |   | 0.00% |
| After      Dark               |   | 6.19%         |   | 0.00% |
| Others                        |   | 6.36%         |   | 1.03% |
|                          |   |          |   |   |
| Total      Revenue            |   | 100.00%       |   | 100.00% |

----

----

| Picture                   |                        |                             | Type      of                  |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
|---------------------------|-----------------------------|----------------------------------|-------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|---------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent       | Production      Services         |                          |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| Speedway      Junky       | Jesse      Bradford,        | Picture      originally produced |                          |   |   |   |             |   |             |             |   |   |    |   |   |
|                      | Jordan      Brower,         | by      a third party financier. |                          |   |   |   |             |   |             |             |   |   |    |   |   |
| 1-Sep                     | Jonathan      Taylor        | FMLY      subsequently           |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Thomas,      Tiffani        | acquired      50% ownership      |                          |   |   |   |             |   |             |             |   |   |    |   |   |
| Theatrical                | Amber      Theisssen,       | from      the financier and      |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Warren      G, Daryl        | receives      royalties if any   |                          |   |   |   |             |   |             |             |   |   |    |   |   |
|                      | Hannah                      |                             |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
|                      |                        |                             |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
| Randall      Emmett & |                        | Production      services         |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
| George      Furla         |                        |                             | provided      include the     |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
| Producers                 |                        |                             | negotiation      of financing |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                        |                             | and      distribution of the  |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                        |                             | picture,      and consulting  |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                        |                             | services                      |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
|                      |                        |                             |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
| Held      For Ransom      | Dennis      Hopper,         | Picture      originally produced |                          |   |   |   |             |   |             |             |   |   | 101,912 |   |   |
|                      | Zachery      Ty Bryan,      | by      a third party financier. |                          |   |   |   |             |   |             |             |   |   |    |   |   |
| Aug-00                    | Kam      Heskin,            | FMYR      subsequently           |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Jordan      Brower,         | acquired      100% ownership     |                          |   |   |   |             |   |             |             |   |   |    |   |   |
| Video/Cable               | Randy      Spelling,        | from      said third party.      |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Tsianina      Joelson,      | receives      royalties, if any. |                          |   |   |   |             |   |             |             |   |   |    |   |   |
|                      | &      Morgan Fairchild |                             |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                        |                             |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
| After      Sex            | Brooke      Shields,        | Picture      originally produced |                          |   |   |   |             |   |             |             |   |   |    |   |   |
|                      | Virginia      Madsen,       | by      a third party financier. |                          |   |   |   |             |   |             |             |   |   |    |   |   |
| Aug-00                    | D.B.      Sweeney,          | FMYR      subsequently           |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Dan      Cortese,           | acquired      100% ownership     |                          |   |   |   |             |   |             |             |   |   |    |   |   |
| Video/Cable               | Maria      Pitillo, &   | from      the financier and      |                          |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Johnathon      Schaech      | receives      royalties, if any. |                          |   |   |   |             |   |             |             |   |   |    |   |   |

----

| Picture                   |                      |                             | Type      of                     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|---------------------------|----------------------------------|----------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent     | Production      Services         |                             |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| I'm      Over Here Now    | Andrew      "Dice"        | Picture      produced            |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      | Clay                      |                             | by      a third party financier. |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Mar-00                    |                      |                             | FMYR      retains profit         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | participation,      if any.      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Pay-per-View/      Video  |                      | No      profit participation     |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                      |                             | payments      received to date.  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                      |                             |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Good      Advice          | Charlie      Sheen,       | Picture      produced by FMYR    |                             |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Angie      Harmon,        | in      conjunction with a third |                             |   |   |   |             |   |             |             |   |   |   |   |   |
| 1-Dec                     | Denise      Richards,     | party.      FMYR retains         |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      | Rosanna      Arquette,    | primary      ownership and       |                             |   |   |   |             |   |             |             |   |   |   |   |   |
| Video/Cable               | &      Jon Lovitz     | receives      royalties, if any. |                             |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                      |                             |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                      | Production      services         |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                      |                             | provided      include the        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                 |                      |                             | negotiation      of financing    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                      |                             | and      distribution of the     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | picture,      and consulting     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                      |                             | services      during             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | development,      during         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | principal      photography,      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | and      during post             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | production      (to ensure       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | that      the film was           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                      |                             | completed      on time and       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                      |                             |  within      budget).       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Ticker                    | Tom      Sizemore,        | Produced      by a third party   |                             |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Steven      Seagal,       | financier.      FMYR provided    |                             |   |   |   |             |   |             |             |   |   |   |   |   |
| 1-Dec                     | Jamie      Pressly, & | production      services and     |                             |   |   |   |             |   |             |             |   |   |   |   |   |

----

| Picture                     |                     |                           | Type      of                            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|-----------------------------|--------------------------|--------------------------------|-----------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                 | Principal      Talent    | Production      Services       |                                    |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                        | Dennis      Hopper       | financing      and received    |                                    |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable                 |                     |                           | a      fee and profit                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           | participation,      If any. No          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           | profit      participation  to |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           | received      to date                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           |                                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| The      Badge              | Billy      Bob Thornton, | Produced      by a third party |                                    |   |   |   |             |   |             |             |   |   |   |   |   |
| (f/k/a      Behind the Sun) | Patricia      Arquette,  | financier.      FMYR provided  |                                    |   |   |   |             |   |             |             |   |   |   |   |   |
|                        | &      Seal Ward     | production      services and   |                                    |   |   |   |             |   |             |             |   |   |   |   |   |
| 2-Sep                       |                     |                           | received      a fee and                 |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           | profit      participation, if any.      |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable                 |                     |                           | No      profit participation            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           | received      to date.                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           |                                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &   |                     | Production      services       |                                    |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla           |                     |                           | provided      include the               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Executive      Producers    |                     | negotiation      of financing  |                                    |   |   |   |             |   |             |             |   |   |   |   |   |
|                        |                     |                           | and      distribution of the            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                        |                     |                           | picture,      and consulting            |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | services      during develop-           |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | ment,      during principal photo-      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | graphy,      and during post            |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | production      (to ensure that,        |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | On      behalf of the financier         |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | and      distributor, that creative     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           | and      financial resources            |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                        |                     |                           |  were      fully utilized)         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |

----

| Picture                   |                   |                               | Type      of                        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|------------------------|------------------------------------|-------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent  | Production      Services           |                                |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| Run      for the Money    | Christian      Slater, | Produced      by a third party     |                                |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Val      Kilmer,       |                               | financier.      FMYR provided       |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 2-Feb                     | Daryl      Hannah,     | production      services and       |                                |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Bokeem      Woodbine,  | received      a fee and            |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable               | &      Vern Troyer | profit      participation, if any. |                                |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                   |                               | No      profit participation        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               | received      to date.              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                   | Production      services           |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                   |                               | provided      include following:    |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producers                 |                   |                               | Negotiated      for the acting      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | services      of Val Kilmer,        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               | Christian      Slater and Daryl     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | Hannah;      negotiated for the     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | financing      and distribution     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | of      the film and provided       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | consulting      services during     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | development,      during            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               | principal      photography,         |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | and      during post production     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               |  (to      ensure that, on      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               | behalf      of the financier        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               | and      distributor, that creative |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | and      financial resources        |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | were      fully utilized)           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                               |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Half      Past Dead       | Steven      Seagal,    | Produced      by a third party     |                                |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Morris      Chestnut,  | financier.      FMYR provided      |                                |   |   |   |             |   |             |             |   |   |   |   |   |
| 2-Nov                     | &      Ja Rule     |                               | production      services and        |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                               | received      a fee and profit      |   |   |   |             |   |             |             |   |   |   |   |   |   |

----

| Picture                   |                     |                            | Type      of                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|--------------------------|---------------------------------|---------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent    | Production      Services        |                                  |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| Theatrical                |                     |                            | participation,      if any. No profit |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                     |                            | participation      received to date.  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                     |                            |                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                     | Production      services prov-  |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
| George      Furla         |                     |                            | ided      included negotiating        |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producers  |                     | for      the services of Steven |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                     |                            |  Segal      for the picture      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Narc                      | Ray      Liotta,         |                            | Produced      by a third party        |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      | Jason      Patric,       | financier.      FMYR provided   |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
| 2-Dec                     | &      Busta Rhymes  | production      services and    |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                     |                            | financing      and received           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Theatrical                |                     |                            | a      fee and profit participation,  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                     |                            | if      any. No profit participation  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                     |                            | received      to date.                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                     |                            |                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                     |                            |                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                     | Production      services        |                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                     |                            | provided      include consulting      |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producers  |                     | on      the financing of the    |                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                     |                            | of      the picture.                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                     |                            |                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| The      Devil and        | Alec      Baldwin,       | Produced      by a third party  |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
| Daniel      Webster       | Anthony      Hopkins,    | financier.      FMYR provided   |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | &      Jennifer Love | production      services and    |                                  |   |   |   |             |   |             |             |   |   |   |   |   |
| 3-Mar                     | Hewitt                   |                            | received      a fee and               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |

----

| Picture                    |                   |                           | Type      of                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|----------------------------|------------------------|--------------------------------|-----------------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                | Principal      Talent  | Production      Services       |                                          |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                       |                   |                           | profit      participation,  if any. |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable                |                   |                           | No      profit participation                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| (Foreign      Release)     |                   | received      to date.         |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| All      I Want            | Elijah      Wood,      | Produced      by a third party |                                          |   |   |   |             |   |             |             |   |   |   |   |   |
| (f/k/a      Try Seventeen) | Franka      Potente,   | financier.      FMYR provided  |                                          |   |   |   |             |   |             |             |   |   |   |   |   |
|                       | &      Mandy Moore | production      services and   |                                          |   |   |   |             |   |             |             |   |   |   |   |   |
| 3-Sep                      |                   |                           | received      a fee and                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                       |                   |                           | profit      participation, if any.            |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable                |                   |                           | No      profit participation                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                       |                   |                           | received      to date.                        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &  |                   | Production      services       |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla          |                   |                           | provided      include                         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                  |                   |                           | consulting      on the financing              |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                       |                   |                           | of      the picture.                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                       |                   |                           |                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Out      for a Kill        | Steven      Seagal     | Produced      by a third party |                                          |   |   |   |             |   |             |             |   |   |   |   |   |
|                       |                   |                           | financier.      FMYR provided                 |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 3-Aug                      |                   |                           | production      services and                  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                       |                   |                           | received      a fee and                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Video/Cable                |                   |                           | profit      participation, if any.            |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                       |                   |                           | No      profit participation                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |

----

| Picture                   |                  |                              | Type      of                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-----------------------|-----------------------------------|------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services          |                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                  |                              | received      to date.             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services          |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                              | provided      include              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                 |                  |                              | negotiating      for the services  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | of      Steven Segal for the       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | picture      and providing         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | consulting      services during    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | development,      on location      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | and      during principal          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | photography                        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | (to      ensure that the film      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | was      completed on time and     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | within      budget).               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Belly      of the Beast   | Steven      Seagal    | Produced      by a third party    |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                              | financier.      FMYR provided      |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 3-Dec                     |                  |                              | production      services and       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | received      a fee and            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Video/Cable               |                  |                              | profit      participation, if any. |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | No      profit participation       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | received      to date.             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services          |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                              | provided      include              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Executive      Producers  |                  | negotiating      for the services |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                              | of      Steven Segal for the       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | picture      and providing         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |

----

| Picture                   |                   |                          | Type      of                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|------------------------|-------------------------------|------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent  | Production      Services      |                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                   |                          | consulting      services during    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | development,      on location      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | and      during principal          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | photography                        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | (to      ensure that the film      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | was      completed on time and     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | within      budget).               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Blind      Horizon        | Val      Kilmer,       |                          | Produced      by a third party     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      | Neve      Campbell,    | financier.      FMYR provided |                               |   |   |   |             |   |             |             |   |   |   |   |   |
| 4-Dec                     | Sam      Shepard & | production      services and  |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Faye      Dunaway      | received      a fee and       |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | profit      participation, if any. |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable               |                   |                          | No      profit participation       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | received      to date.             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                   | Production      services      |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                   |                          | provided      include              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                 |                   |                          | negotiating      for the acting    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | services      of Val Kilmer,       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | negotiating      for the financing |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | and      distribution of the       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | picture      and providing         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | consulting      services during    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | development,      during           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | principal      photography and     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                   |                          | during      post production        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | (to      ensure that, on           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                   |                          | behalf      of the financier       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |

----

| Picture                       |                     |                           | Type      of                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|-------------------------------|--------------------------|--------------------------------|------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                   | Principal      Talent    | Production      Services       |                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                          |                     |                           | and      financial resources       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | were      fully utilized)          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                          |                     |                           |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Control                       | Ray      Liotta, &   | Produced      by a third party |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                          | William      Dafoe       | financier.      FMLY provided  |                               |   |   |   |             |   |             |             |   |   |   |   |   |
| 5-Feb                         |                     |                           | production      services and       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | received      a fee and            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                          |                     |                           | profit      participation, if any. |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable                   |                     |                           | No      profit participation       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                          |                     |                           | received      to date.             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                          |                     |                           |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &     |                     | Production      services       |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla             |                     |                           | provided      include negotiating  |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producers                     |                     |                           | for      the acquisition of the    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | rights      in and to the screen-  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | play      upon which the picture   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | was      based and negotiating     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | the      acting services           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                          |                     |                           | agreement      with Ray Liotta.    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | Also      performed consulting     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | services      during principal     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | photography      and through-      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | out      the post production       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | process      to assist in getting  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | the      picture completed on      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           | time      and within budget.       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                          |                     |                           |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Love      Song for Bobby Long | John      Travolta & | Produced      by a third party |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                          | Scarlett      Johansson  | financier.      FMYR provided  |                               |   |   |   |             |   |             |             |   |   |   |   |   |

----

| Picture                      |                            |                             | Type      of                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|------------------------------|---------------------------------|----------------------------------|------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                  | Principal      Talent           | Production      Services         |                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                         |                            |                             | production      services and       |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 4-Dec                        |                            |                             | received      a fee and            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                            |                             | profit      participation, if any. |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Theatrical                   |                            |                             | No      profit participation       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                            |                             | received      to date.             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                            |                             |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &    |                            | Production      services         |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla            |                            |                             | provided      include consulting   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producers     |                            | in      the negotiations for the |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                         |                            |                             | acting      services of John       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                            |                             | Travolta      for the picture.     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                            |                             |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| The      Amityville Horror   | Ryan      Reynolds, &       | Produced      by a third party   |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                         | Melissa      George             | financier.      FMYR provided    |                               |   |   |   |             |   |             |             |   |   |   |   |   |
| 5-Apr                        |                            |                             | development      services and      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                            |                             | received      a fee.               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                            |                             |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Theatrical                   |                            |                             |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                         |                            |                             |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &    |                            | Production      services         |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla            |                            |                             | provided      include negotiating  |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Co-      Executive Producers | for      the acquisition of the |                             |                               |   |   |   |             |   |             |             |   |   |   |   |
|                         |                            |                             | rights      in and to the picture  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                            |                             | and      subsequently              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                            |                             | negotiated      for their sale     |   |   |   |             |   |             |             |   |   |   |   |   |   |

----

| Picture                   |                    |                           | Type      of                        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-------------------------|--------------------------------|-------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent   | Production      Services       |                                |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                    |                           | to      NuImage.                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Edison                    | Morgan      Freeman,    | Produced      by a third party |                                |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Justin      Timberlake, | financier.      FMYR provided  |                                |   |   |   |             |   |             |             |   |   |   |   |   |
| 6-Aug                     | LL      Cool J, &   | production      services and   |                                |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Kevin      Spacey       | received      a fee and        |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | profit      participation, if any,  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | in      the film.                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| video/cable               |                    |                           |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                    |                           |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                    | Production      services       |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                    |                           | provided      include negotiating   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producers                 |                    |                           | for      the acquisition of the     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | rights      in and to the screen-   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | play      upon which the picture    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | was      based as well as           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | the      acting services            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | agreements      of Morgan           |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | Freeman,      Justin Timberlake,    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | LL      Cool J and Kevin            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | Spacey.      Also provided          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | consulting      services            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | during      principal               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | photography      and the post       |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | production      process.            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | (to      ensure that, on            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | behalf      of the financier        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           | and      distributor, that creative |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | and      financial resources        |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                    |                           | were      fully utilized)           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                    |                           |                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |

----

| Picture                     |                   |                           | Type      of                    |   |   |   |             |      |             |             |   |   |   |   |   |   |   |   |
|-----------------------------|------------------------|--------------------------------|---------------------------------|--------|--------|--------|------------------|-----------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                 | Principal      Talent  | Production      Services       |                            |   |   |   | Fiscal      2006 |      | Fiscal      2007 | Fiscal      2008 |
| Submerged                   | Steven      Seagal     | Produced      by a third party |                            |   |   |   |             |      |             |             |   |   |   |   |   |
|                        |                   |                           | financier.      FMYR provided   |   |   |   |             |      |             |             |   |   |   |   |   |   |
| 5-Jun                       |                   |                           | development      services and   |   |   |   |             |      |             |             |   |   |   |   |   |   |
|                        |                   |                           | received      a fee.            |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |   |   |
| Video/Cable                 |                   |                           |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |   |   |
|                        |                   |                           |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &   |                   | Production      services       |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |
| George      Furla           |                   |                           | provided      include           |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
| Producers                   |                   |                           | negotiating      an acting      |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           | services      agreement with    |   |   |   |             |      |             |             |   |   |   |   |   |   |
|                        |                   |                           | Steven      Segal for the       |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           | picture      and providing      |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           | consulting      services during |   |   |   |             |      |             |             |   |   |   |   |   |   |
|                        |                   |                           | development,      and on        |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           | location      during principal  |   |   |   |             |      |             |             |   |   |   |   |   |   |
|                        |                   |                           | photography.                    |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |   |   |
| The      Tenants            | Dylan      McDermott,  | Produced      by a third party |                            |   |   |   |             |      |             |             |   |   |   |   |   |
|                        | Snoop      Doggy Dogg, | financier.      FMYR provided  |                            |   |   |   |             |      |             |             |   |   |   |   |   |
| 6-Feb                       | &      Peter Falk  | production      services and   |                            |   |   |   |             |      |             |             |   |   |   |   |   |
|                        |                   |                           | financing      and received     |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
|                        |                   |                           | a      fee and profit           |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
| Theatrical                  |                   |                           | participation,      if any, in  |   |   |   |             |      |             |             |   |   |   |   |   |   |   |
| Distribution      Guarantee |                   | the      film.                 |                            |   |   |   |             | 1,300,000 |             |             |   |   |   |   |   |   |   |
|                        |                   |                           |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &   |                   | Production      services       |                            |   |   |   |             |      |             |             |   |   |   |   |   |   |
| George      Furla           |                   |                           | provided      include           |   |   |   |             |      |             |             |   |   |   |   |   |   |   |

----

| Picture                   |                  |                           | Type      of                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-----------------------|--------------------------------|---------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services       |                            |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| Producers                 |                  |                           | negotiating      the financing  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           | of      the picture and its     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           | distribution      by NuImage.   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Today      You Die        | Steven      Seagal    | Produced      by a third party |                            |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                           | financier.      FMYR provided   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 5-Sep                     |                  |                           | production      services and    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           | received      a fee and profit  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           | participation,      if any, in  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Video/Cable               |                  |                           | the      film                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                           |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services       |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                           | provided      include           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                 |                  |                           | negotiating      an acting      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           | services      agreement with    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           | Steven      Segal for the       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           | picture      and providing      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           | consulting      services during |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           | development,      and on        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           | location      during principal  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                           | photography.                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Wonderland                | Val      Kilmer,      |                           | Produced      by a third party  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      | Kate      Bosworth,   | financier.      FMYR provided  |                            |   |   |   |             |   |             |             |   |   |   |   |   |
| 3-Oct                     | Lisa      Kudrow,     | development      services and  |                            |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Josh      Lucas & | received      a fee.           |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Theatrical                | Dylan      Mcdermott  |                           |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                           |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services       |                            |   |   |   |             |   |             |             |   |   |   |   |   |   |

----

| Picture                      |                             |                           | Type      of                      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|------------------------------|----------------------------------|--------------------------------|-----------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                  | Principal      Talent            | Production      Services       |                              |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| George      Furla            |                             |                           | provided      include             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Executive      Producers     |                             | obtaining      financing       |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                             |                           | and      negotiating for the      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                           | distribution      of the picture. |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                             |                           |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Loverboy                     | Kyra      Sdgwick,               | Produced      by a third party |                              |   |   |   |             |   |             |             |   |   |   |   |   |
|                         | Kevin      Bacon,                | financier.      FMYR provided  |                              |   |   |   |             |   |             |             |   |   |   |   |   |
| 5-May                        | Sandra      Bullock,             | development      services and  |                              |   |   |   |             |   |             |             |   |   |   |   |   |
|                         | Matt      Dillon,                |                           | received      a fee.              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Theatrical                   | Oliver      Platt &          |                           |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         | Marissa      Tomei               |                           |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                           |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &    |                             | Production      services       |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla            |                             |                           | provided      include             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Co-      Executive Producers | consulting      on the financing |                           |                              |   |   |   |             |   |             |             |   |   |   |   |
|                         |                             |                           | and      distribution of the      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                           | picture.                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                         |                             |                           |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Shottas                      | Ky-Mani      Marley,             | Produced      by a third party |                              |   |   |   |             |   |             |             |   |   |   |   |   |
|                         | Spragga      Benz,               | financier.      FMYR provided  |                              |   |   |   |             |   |             |             |   |   |   |   |   |
| 5-Dec                        | Wyclef      Jean,                | post-production      services  |                              |   |   |   |             |   |             |             |   |   |   |   |   |
| (Estimated      Release)     | &      Louie Rankin          | and      financing and will    |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                             |                           | receive      a fee and profit     |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable                  |                             |                           | participation,      if any, in    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                           | the      film.                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                         |                             |                           |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |

----

| Picture                      |                             |                            | Type      of                      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|------------------------------|----------------------------------|---------------------------------|-----------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                  | Principal      Talent            | Production      Services        |                              |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| Randall      Emmett &    |                             | Production      services        |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla            |                             |                            | provided      include             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Co-      Executive Producers | consulting      on the financing |                            |                              |   |   |   |             |   |             |             |   |   |   |   |
|                         |                             |                            | and      distribution of the      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                            | picture.                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                         |                             |                            |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Before      It Had A         | William      Dafoe               | Produced      by a third party  |                              |   |   |   |             |   |             |             |   |   |   |   |   |
| Name      f/k/a Black        |                             | financier.      FMYR provided   |                              |   |   |   |             |   |             |             |   |   |   |   |   |
| Widow      f/ka The          |                             | development      services       |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Widow's      Lover           |                             | and      received a fee.        |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 7-Aug                        |                             |                            |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Scheduled      Release)      |                             |                            |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                            |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Video/Cable                  |                             |                            |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                         |                             |                            |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &    |                             | Production      services        |                              |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla            |                             |                            | provided      include obtaining   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producers     |                             | financing,      negotiating for |                              |   |   |   |             |   |             |             |   |   |   |   |   |
|                         |                             |                            | distribution      of the picture, |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                             |                            | and      providing consulting     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                             |                            | services      during              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                            | development,      and on          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                             |                            | location      during principal    |   |   |   |             |   |             |             |   |   |   |   |   |   |

----

| Picture                      |                   |                           | Type      of                     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|------------------------------|------------------------|--------------------------------|----------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                  | Principal      Talent  | Production      Services       |                             |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                         |                   |                           | photography.                     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                   |                           |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Lonely      Hearts           | John      Travolta,    | Produced      by a third party |                             |   |   |   |             |   |             |             |   |   |   |   |   |
|                         | James      Gandofini,  | financier.      FMYR provided  |                             |   |   |   |             |   |             |             |   |   |   |   |   |
| 7-Apr                        | &      Salma Hayek | development      services      |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | and      received a fee.         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                   |                           |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Theatrical                   |                   |                           |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                         |                   |                           |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett &    |                   | Production      services       |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla            |                   |                           | provided      include            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Co-Executive      Producers  |                   | negotiating      an acting     |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | services      agreement for this |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | picture      with John Travolta  |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | and      providing consulting    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | services      during             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                   |                           | development,      and on         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                   |                           | location      during principal   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | photography.                     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                   |                           |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Mercenary      for           | Steven      Seagal     | Produced      by a third party |                             |   |   |   |             |   |             |             |   |   |   |   |   |
| Justice      f/k/a Mercenary |                   | financier.      FMYR provided  |                             |   |   |   |             |   |             |             |   |   |   |   |   |
| 6-Apr                        |                   |                           | production      services and     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                         |                   |                           | and      received a fee.         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                         |                   |                           |                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Video/Cable                  |                   |                           | 2005                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |

----

| Picture                   |                  |                              | Type      of                           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-----------------------|-----------------------------------|----------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services          |                                   |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                  |                              |                                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                              |                                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services          |                                   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                              | provided      include                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                 |                  |                              | negotiating      an acting             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | services      agreement with           |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | Steven      Segal for the              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | picture      and providing             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | consulting      services during        |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | development,      and on               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | location      during principal         |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | photography.                           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | Note:  We      do not have a |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | contract      on this project;         |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | and      are uncertain about           |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | profit      participation.             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                                   |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| 16      Blocks            | Bruce      Willis     | Produced      by a third party    |                                   |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Mos      Def          |                              | financier.      FMYR provided          |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 6-Mar                     |                  |                              | production      services and           |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | and      received a fee.               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | 2005.      Additionally, we            |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Theatrical                |                  |                              | will      receive a profit             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | participation,      if any, in the     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | film.                                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services          |                                   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                              | provided      include negotiating      |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producer/                 |                  |                              | for      the acquisition of the        |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producer   |                  | rights      in and to the screen- |                                   |   |   |   |             |   |             |             |   |   |   |   |   |

----

| Picture                   |                  |                             | Type      of                     |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
|---------------------------|-----------------------|----------------------------------|----------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|---------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services         |                             |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                  |                             | play      upon which the picture |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                  |                             | was      based as well as        |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | the      acting services         |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | agreements      of Bruce         |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | Willis      and the directing    |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                  |                             | services      of Richard         |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | Donner.      Also provided       |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | consulting      services         |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | during      principal            |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | photography      and the post    |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                  |                             | production      process.         |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             |                             |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
| Borderland                | Brian      Presley    | Picture      produced by FMYR    |                             |   |   |   |             |   |             |             |   |   | 899,915 |   |   |
|                      | Jake      Muxworthy   | in      conjunction with a third |                             |   |   |   |             |   |             |             |   |   | 200,000 |   |   |
| 8-Oct                     | Rider      Strong     | party.      FMYR retains         |                             |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      | Sean      Astin       |                             | 50%      ownership and           |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
| Theatrical                | Beto      Cuevas      | receives      royalties, if any. |                             |   |   |   |             |   |             |             |   |   |    |   |   |
|                      |                  |                             |                             |   |   |   |             |   |             |             |   |   |    |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services         |                             |   |   |   |             |   |             |             |   |   |    |   |   |   |
| George      Furla         |                  |                             | provided      include the        |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
| Producers                 |                  |                             | negotiation      of financing    |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                  |                             | and      distribution of the     |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | picture,      and consulting     |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                  |                             | services      during             |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | development,      during         |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | principal      photography,      |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | and      during post             |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | production      (to ensure       |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | that      the film was           |   |   |   |             |   |             |             |   |   |    |   |   |   |   |
|                      |                  |                             | completed      on time and       |   |   |   |             |   |             |             |   |   |    |   |   |   |
|                      |                  |                             |  within      budget).       |   |   |   |             |   |             |             |   |   |    |   |   |   |   |

----

| Picture                   |                  |                              | Type      of                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-----------------------|-----------------------------------|------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services          |                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| The      Wicker Man       | Nicolas      Cage     | Produced      by a third party    |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Ellen      Burstyn    | financier.      FMYR provided     |                               |   |   |   |             |   |             |             |   |   |   |   |   |
| 6-Sep                     | Leelee      Sobieski  | production      services and      |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                              | will      receive a producers      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | fee      in the first quarter of   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Theatrical                |                  |                              | 2006.      Additionally, we        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | will      receive a profit         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | participation,      if any, in the |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | film.                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services          |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                              | provided      include negotiating  |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producer/                 |                  |                              | for      the acquisition of the    |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producer   |                  | rights      in and to the screen- |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                              | play      upon which the picture   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | was      based as well as          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | the      acting services           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | agreements      of Nicolas         |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | Cage      and the directing        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | services      of Neil              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | La      Bute Also provided         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | consulting      services           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | during      principal              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | photography      and the post      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | production      process.           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                               |   |   |   |             |   | 300,000          |             |   |   |   |   |   |   |   |   |

----

| Picture                   |                  |                              | Type      of                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-----------------------|-----------------------------------|-------------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services          |                                      |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
| The      Contract         | Morgan      Freeman   | Produced      by a third party    |                                      |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | John      Cusack      | financier.      FMYR provided     |                                      |   |   |   |             |   |             |             |   |   |   |   |   |
| 1-Jul                     |                  |                              | production      services and              |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | will      receive a producers             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | fee      in the first quarter of          |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Video/Cable               |                  |                              | 2006.      Additionally, we               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | will      receive a profit participation, |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | if      any, in the film.                 |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                                      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services          |                                      |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                              | provided      include negotiating         |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producer/                 |                  |                              | for      the acquisition of the           |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producer   |                  | rights      in and to the screen- |                                      |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                              | play      upon which the picture          |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | was      based as well as                 |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | the      acting services                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | agreements      of Morgan                 |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | Freemand      and John                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | Cusack      and the directing             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | services      of Bruce                    |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | Beresford      Also provided              |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | consulting      services                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | during      principal                     |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              | photography      and the post             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | production      process.                  |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                              |                                      |   |   |   |             |   | 300,000          |             |   |   |   |   |   |   |   |   |
| 88      Minutes           | Al      Pacino        |                              | Produced      by a third party            |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | financier.      FMYR provided             |   |   |   |             |   |             |             |   |   |   |   |   |   |
| 8-Apr                     |                  |                              | production      services and              |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                              | will      receive a producers             |   |   |   |             |   |             |             |   |   |   |   |   |   |

----

| Picture                   |                  |                               | Type      of                       |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|-----------------------|------------------------------------|------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services           |                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                  |                               | fee      in the first quarter of   |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Theatrical                |                  |                               | 2006.      Additionally, we        |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | will      receive a profit         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | participation,      if any, in the |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                               | film.                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                  |                               |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                  | Production      services           |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |
| George      Furla         |                  |                               | provided      include negotiating  |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Producer/                 |                  |                               | for      the acquisition of the    |   |   |   |             |   |             |             |   |   |   |   |   |   |
| Executive      Producer   |                  | rights      in and to the screen-  |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                  |                               | play      upon which the picture   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                               | was      based as well as          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | the      acting services           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | agreements      of Al              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | Pacino      and the directing      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                               | services      of Jon               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | Avnet.      Also provided          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | consulting      services           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | during      principal              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               | photography      and the post      |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                  |                               | production      process.           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                  |                               |                               |   |   |   |             |   | 400,000          |             |   |   |   |   |   |   |   |   |
| Home      of the Brave    | Sam      Jackson      | Produced      by a third party     |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Jessica      Biel,    | financier.      FMYR provided      |                               |   |   |   |             |   |             |             |   |   |   |   |   |
| 6-Dec                     | Curtis      "50 Cent" | production      services and       |                               |   |   |   |             |   |             |             |   |   |   |   |   |
| (Initial      Release)    |  Jackson,        |                               | will      receive a profit         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      | Christina      Ricci, | participation,      if any, in the |                               |   |   |   |             |   |             |             |   |   |   |   |   |
|                      | Brian      Pressley   | film.                              |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Theatrical                |                  |                               |                               |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |

----

| Picture                   |                  |                             | Type      of                                       |   |   |   |             |   |             |             |   |   |      |   |   |   |   |   |
|---------------------------|-----------------------|----------------------------------|----------------------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|-----------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent | Production      Services         |                                               |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                  |                             |                                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |   |
| Randall      Emmett & |                  |                             |                                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
| George      Furla         |                  |                             |                                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |   |
| Producer/                 |                  |                             |                                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |   |
| Executive      Producer   |                  | Production      services         |                                               |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | provided      include (1)  participating |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | in      the negotiation of the                     |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | acting      services agreements                    |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | of      Sam jackson                                |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | Jessica      Biel                                  |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | Curtis      "50 cent" Jackson                      |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | Christina      Ricci                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | Brian      Pressley and (2)                        |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | negotaiting      with                              |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | a      third party equity                          |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | participant      for                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | said      party's participation                    |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | in      the financing of the picture.              |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | production      process. Also                      |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | Also      provided                                 |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | consulting      services                           |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | during      principal                              |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | photography      and the post                      |   |   |   |             |   |             |             |   |   |      |   |   |   |
|                      |                  |                             | production      process.                           |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             |                                               |   |   |   |             |   |             |             |   |   |      |   |   |   |   |   |
| King      of California   | Michael      Douglas  | Produced      by a third party   |                                               |   |   |   |             |   |             |             |   |   | 1,300,000 |   |   |
|                      | Evan      Rachel Wood | co-financier.      FMYR provided |                                               |   |   |   |             |   |             |             |   |   |      |   |   |
| 7-Sep                     |                  |                             | production      services and                       |   |   |   |             |   |             |             |   |   |      |   |   |   |
| Theatrical                |                  |                             | will      receive a profit                         |   |   |   |             |   |             |             |   |   |      |   |   |   |   |
|                      |                  |                             | participation,      if any, in the                 |   |   |   |             |   |             |             |   |   |      |   |   |   |

----

| Picture                   |                            |                                      | Type      of                                                                                                                      |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|---------------------------|---------------------------------|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------|--------|------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information               | Principal      Talent           | Production      Services                  |                                                                                                                              |   |   |   | Fiscal      2006 |   | Fiscal      2007 | Fiscal      2008 |
|                      |                            |                                      | Film.                                                                                                                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
|                      |                            |                                      |                                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Randall      Emmett & |                            |                                      |                                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| George      Furla         |                            |                                      | Production      services                                                                                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
| Producers                 |                            |                                      | provided      include (1)  participating                                                                                |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                            |                                      | in      the negotiation of the                                                                                                    |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                            |                                      | of      Michael Douglas                                                                                                           |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | and      Evan Rachel                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | Wood      and (2)                                                                                                                 |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | negotaiting      with                                                                                                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | a      third party equity                                                                                                         |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | participant      for                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | said      party's participation                                                                                                   |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                            |                                      | in      the financing of the picture.                                                                                             |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                            |                                      | production      process. Also                                                                                                     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                            |                                      | Also      provided                                                                                                                |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | consulting      services                                                                                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | during      principal                                                                                                             |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      | photography      and the post                                                                                                     |   |   |   |             |   |             |             |   |   |   |   |   |   |
|                      |                            |                                      | production      process.                                                                                                          |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      |                                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Rin      Tin Tin          | Armande      Assante, Ben Cross | Produced      by a third party financier. |                                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |
|                      |                            |                                      | FMYR      provided production services.                                                                                           |   |   |   |             |   |             |             |   |   |   |   |   |
| 8-Sep                     |                            |                                      | FMYR      will receive profit participation , if any, in the film.                                                                |   |   |   |             |   |             |             |   |   |   |   |
| (Scheduled      Release)  |                            |                                      |                                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |
|                      |                            |                                      |                                                                                                                              |   |   |   |             |   |             |             |   |   |   |   |   |   |   |   |
| Video/Cable               |                            |                                      | Production      services provided include:                                                                                        |   |   |   |             |   |             |             |   |   |   |   |   |
|                      |                            |                                      | (a)      negotiating for the acquisition of the underlying rights to certain      intellectual property copyrights andtrademarks; |

----

| Picture                                |                                                                                                                                     |                                                                                | Type      of                                                                                                                          |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |   |
|----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                            | Principal      Talent                                                                                                                    | Production      Services                                                            |                                                                                                                                  |   |   |   | Fiscal      2006 |   | Fiscal      2007                                                                                                          | Fiscal      2008 |
| Randall      Emmett & George Furla | (b)      negotiating for a writer to adapt the underlying rights into a feature      film screenplay upon which the movie will be based; |
| Producers                              |                                                                                                                                     |                                                                                | as      well as, ('c) providing consulting services during the development,      principal photography and post-production processes. |
|                                   |                                                                                                                                     |                                                                                |                                                                                                                                  |   |   |   |             |   |                     - |             |   |   |   |   |   |
| Day      of the Dead                   | Mena      Suvari, Nick Cannon, Ving Rhames                                                                                               | Produced      by a third party financier.                                           |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |
|                                   |                                                                                                                                     |                                                                                | FMYR      provided production services.                                                                                               |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |
| 8-Apr                                  |                                                                                                                                     |                                                                                | FMYR      will receive profit participation , if any, in the film.                                                                    |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |
| Video/Cable                            |                                                                                                                                     |                                                                                |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |   |
|                                   |                                                                                                                                     |                                                                                | Production      services provided include:                                                                                            |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |
|                                   |                                                                                                                                     |                                                                                | (a)      negotiating for the acquisition of the underlying rights to certain      intellectual property copyrights and trademarks;    |
| Randall      Emmett & George Furla | (b)      negotiating for a writer to adapt the underlying rights into a feature      film screenplay upon which the movie will be based; |
| Producers                              |                                                                                                                                     |                                                                                | (c)      participated in the negotiation of Mena Survai, Nick Cannon and Ving      Rhames' acting contracts;                          |   |   |   |
|                                   |                                                                                                                                     |                                                                                | as      well as, (d) providing consulting services during the development,      principal photography and post-production processes.  |
|                                   |                                                                                                                                     |                                                                                |                                                                                                                                  |   |   |   |             |   |                     - |             |   |   |   |   |   |
| Rambo      IV                          | Sylvester      Stallone                                                                                                                  | Produced      by a third party financier.                                           |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |
| aka      "John Rambo"                  |                                                                                                                                     | FMYR      provided production services.                                             |                                                                                                                                  |   |   |   |             |   | 1,500,000                                                                                                                 |             |   |   |   |   |
| 8-Jan                                  |                                                                                                                                     |                                                                                | In      connection with said services, FMYR will recieved a "producer      fee"                                                       |   |   |   |             |   |                                                                                                                      |             |   |   |
| (Estimated      Release)               |                                                                                                                                     | Additionally,      FMYR will receive profit participation , if any, in the    film. |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |
|                                   |                                                                                                                                     |                                                                                |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |   |
| Theatrical                             |                                                                                                                                     |                                                                                |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |   |
|                                   |                                                                                                                                     |                                                                                |                                                                                                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |   |

----

| Picture                                  |                                       |                                       | Type      of                                                                                                                         |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
|------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------|------------------|--------|---------|--------|--------|--------|--------|--------|--------|
| Information                              | Principal      Talent                      | Production      Services                   |                                                                                                                                 |   |   |   | Fiscal      2006 |   | Fiscal      2007                                                                                                          | Fiscal      2008 |
| Randall      Emmett & George Furla   | Production      services prodived include: |                                       |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |
| Producers                                |                                       |                                       | providing      consulting services during the development, principal photography and      post-production processes.                 |
|                                     |                                       |                                       |                                                                                                                                 |   |   |   |             |   |                     - |             |   |    |   |   |   |
|                                     |                                       |                                       |                                                                                                                                 |   |   |   |             |   |                     - |             |   |    |   |   |   |
| Thick      as Thieves (f/k/a "The Code") | Morgan      Freeman                        | Produced      by a third party financier.  |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   | 100,000 |   |   |
|                                     | Antonio      Banderas                      | FMYR      provided production services.    |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |
| 8-Oct                                    |                                       |                                       | In      connection with said services, FMYR will receive a "producer      fee"                                                       |   |   |   |             |   |                                                                                                                      |             |   |    |   |
| (Estimated      Release)                 |                                       | In      the second quarter of Fiscal 2008. |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |
| video/cable                              |                                       |                                       | Additionally,      FMYR will receive profit participation , if any, in the    film.                                                  |   |   |   |             |   |                                                                                                                      |             |   |    |   |
|                                     |                                       |                                       |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
| Randall      Emmett & George Furla   | Production      services prodived include: |                                       |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |
| Producers                                |                                       |                                       | (a)      negotiating for the acquisition of the screenplay upon which the movie      will be based                                   |   |   |   |             |
|                                     |                                       |                                       | (b)      participated in the negotiation of Morgan Freeman's acting      contract;                                                   |   |   |   |             |   |                                                                                                                      |             |   |
|                                     |                                       |                                       | as      well as, (d) providing consulting services during the development,      principal photography and post-production processes. |
|                                     |                                       |                                       |                                                                                                                                 |   |   |   |             |   |                     - |             |   |    |   |   |   |
| Westward                                 | TBD                                        |                                       | Produced      by a third party financier.                                                                                            |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |
|                                     |                                       |                                       | FMYR      provided production services.                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |
| 10-Aug                                   |                                       |                                       | In      connection with said services, FMYR will receive a "producer      fee"                                                       |   |   |   |             |   |                                                                                                                      |             |   |    |   |
| (Estimated      Release)                 |                                       | In      the third quarter of Fiscal 2007.  |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |
|                                     |                                       |                                       | Additionally,      FMYR will receive profit participation , if any, in the    film.                                                  |   |   |   |             |   |                                                                                                                      |             |   |    |   |

----

| Picture                                |                                                                                                    |                                                                                | Type      of                                                                                                                         |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |   |
|----------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Information                            | Principal      Talent                                                                                   | Production      Services                                                            |                                                                                                                                 |   |   |   | Fiscal      2006 |   | Fiscal      2007                                                                                                          | Fiscal      2008 |
| Theatrical                             |                                                                                                    |                                                                                |  This      project is "in development" with principal photography scheduled to start      on                                    |   |   |   |             |   |                                                                                                                      |
|                                   |                                                                                                    |                                                                                | February      15, 2009.                                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |
| Randall      Emmett & George Furla | Production      services prodived include:                                                              |                                                                                |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |
| Producers                              |                                                                                                    |                                                                                | (a)      negotiating for the acquisition of the screenplay upon which the movie      will be based                                   |   |   |   |             |
|                                   |                                                                                                    |                                                                                | (b)      participated in the negotiation of Joel Schumacher's directing      contract;                                               |   |   |   |             |   |                                                                                                                      |             |   |
|                                   |                                                                                                    |                                                                                | as      well as, (d) providing consulting services during the development,      principal photography and post-production processes. |
|                                   |                                                                                                    |                                                                                |                                                                                                                                 |   |   |   |             |   |                     - |             |   |   |   |   |   |
| Red      Sonja                         | Rose      McGowan                                                                                       | Produced      by a third party financier.                                           |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |
|                                   |                                                                                                    |                                                                                | FMYR      provided production services.                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |
| 9-Jan                                  |                                                                                                    |                                                                                | FMYR      will receive profit participation , if any, in the film.                                                                   |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |
| (Estimated      Release)               |                                                                                                    | Additionally,      FMYR will receive profit participation , if any, in the    film. |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |
|                                   |                                                                                                    |                                                                                |  This      project is "in development" with principal photography scheduled to start      on                                    |   |   |   |             |   |                                                                                                                      |
| Theatrical                             |                                                                                                    |                                                                                | February      1, 2009.                                                                                                               |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |   |   |
|                                   |                                                                                                    |                                                                                | Production      services prodived include:                                                                                           |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |
| Randall      Emmett & George Furla | (a)      negotiating for the acquisition of underlying property upon which the      movie will be based |                                                                                |                                                                                                                                 |   |
| Producers                              |                                                                                                    |                                                                                | as      well as, (b) providing consulting services during the development,      principal photography and post-production processes. |
|                                   |                                                                                                    |                                                                                |                                                                                                                                 |   |   |   |             |   |                     - |             |   |   |   |   |   |
| Major      Movie Star                  | Jessica      Simpson                                                                                    | Produced      by a third party financier.                                           |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |
|                                   | Cheri      Oteri                                                                                        |                                                                                | FMYR      provided production services.                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |   |
| 8-Sep                                  | Vivica      Fox                                                                                         |                                                                                | In      connection with said services, FMYR will receive a "producer      fee"                                                       |   |   |   |             |   |                                                                                                                      |             |   |   |   |
| (Estimated      Release)               | Steve      Guttenberg                                                                                   | In      the second quarter of Fiscal 2008.                                          |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |   |

----

| Picture                                |                                                                                                    |                                      | Type      of                                                                                                                         |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
|----------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------|------------------|--------|---------|--------|--------|--------|--------|--------|--------|
| Information                            | Principal      Talent                                                                                   | Production      Services                  |                                                                                                                                 |   |   |   | Fiscal      2006 |   | Fiscal      2007                                                                                                          | Fiscal      2008 |
|                                   |                                                                                                    |                                      | Additionally,      FMYR will receive profit participation , if any, in the    film.                                                  |   |   |   |             |   |                                                                                                                      |             |   |    |   |
| Video/Cable                            |                                                                                                    |                                      |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
|                                   |                                                                                                    |                                      |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
| Randall      Emmett & George Furla | Production      services prodived include:                                                              |                                      |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |
| Producers                              |                                                                                                    |                                      | (a)      negotiating for the acquisition of the screenplay upon which the movie      will be based                                   |   |   |   |             |
|                                   |                                                                                                    |                                      | (b)      participated in the negotiation of Joel Schumacher's directing      contract;                                               |   |   |   |             |   |                                                                                                                      |             |   |
|                                   |                                                                                                    |                                      | as      well as, (d) providing consulting services during the development,      principal photography and post-production processes. |
|                                   |                                                                                                    |                                      |                                                                                                                                 |   |   |   |             |   |                     - |             |   |    |   |   |   |
| Righteous      Kill                    | Robert      DeNiro                                                                                      | Produced      by a third party financier. |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   | 275,000 |   |   |
|                                   | Al      Pacino                                                                                          |                                      | FMYR      provided production services.                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |
| 8-Sep                                  |                                                                                                    |                                      | FMYR      will receive profit participation , if any, in the film.                                                                   |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |
|                                   |                                                                                                    |                                      | Additionally,      FMYR will receive profit participation , if any, in the    film.                                                  |   |   |   |             |   |                                                                                                                      |             |   |    |   |
|                                   |                                                                                                    |                                      |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
| Theatrical                             |                                                                                                    |                                      |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |   |   |   |
|                                   |                                                                                                    |                                      | Production      services prodived include:                                                                                           |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |
| Randall      Emmett & George Furla | (a)      negotiating for the acquisition of underlying property upon which the      movie will be based |                                      |                                                                                                                                 |   |
| Producers                              |                                                                                                    |                                      | as      well as, (b) providing consulting services during the development,      principal photography and post-production processes. |
|                                   |                                                                                                    |                                      |                                                                                                                                 |   |   |   |             |   |                     - |             |   |    |   |   |   |
| Higher      Form of Learning, A        | Steven      Seagal                                                                                      | Produced      by a third party financier. |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   | 150,000 |   |   |
|                                   |                                                                                                    |                                      | FMYR      provided production services.                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |   |
| 1-Oct                                  |                                                                                                    |                                      | FMYR      will receive profit participation , if any, in the film.                                                                   |   |   |   |             |   |                                                                                                                      |             |   |    |   |   |

----

| Picture                                                 |                                                                                                    |                                                                                | Type      of                                                                                                                         |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |   |   |   |
|---------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------|------------------|--------|--------|--------|---------|--------|--------|--------|--------|
| Information                                             | Principal      Talent                                                                                   | Production      Services                                                            |                                                                                                                                 |   |   |   | Fiscal      2006 |   | Fiscal      2007                                                                                                          | Fiscal      2008 |
|                                                    |                                                                                                    |                                                                                | Additionally,      FMYR will receive profit participation , if any, in the    film.                                                  |   |   |   |             |   |                                                                                                                      |             |   |   |   |
|                                                    |                                                                                                    |                                                                                |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |   |   |   |
| Theatrical                                              |                                                                                                    |                                                                                |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |   |   |   |
|                                                    |                                                                                                    |                                                                                | Production      services prodived include:                                                                                           |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |
| Randall      Emmett & George Furla                  | (a)      negotiating for the acquisition of underlying property upon which the      movie will be based |                                                                                |                                                                                                                                 |   |
| Producers                                               |                                                                                                    |                                                                                | as      well as, (b) providing consulting services during the development,      principal photography and post-production processes. |
|                                                    |                                                                                                    |                                                                                |                                                                                                                                 |   |   |   |             |   |                     - |             |   |   |   |    |   |
| Conan      the Barbarian                                | TBD                                                                                                     |                                                                                | Produced      by a third party financier.                                                                                            |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |
|                                                    |                                                                                                    |                                                                                | FMYR      provided production services.                                                                                              |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |
| 10-Jan                                                  |                                                                                                    |                                                                                | FMYR      will receive profit participation , if any, in the film.                                                                   |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |
| (Estimated      Release)                                |                                                                                                    | Additionally,      FMYR will receive profit participation , if any, in the    film. |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |
|                                                    |                                                                                                    |                                                                                |  This      project is "in development" with principal photography scheduled to start      on                                    |   |   |   |             |   |                                                                                                                      |
| Theatrical                                              |                                                                                                    |                                                                                | April      15, 2010.                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |   |   |
|                                                    |                                                                                                    |                                                                                | Production      services prodived include:                                                                                           |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |
| Randall      Emmett & George Furla                  | (a)      negotiating for the acquisition of underlying property upon which the      movie will be based |                                                                                |                                                                                                                                 |   |
| Producers                                               |                                                                                                    |                                                                                | as      well as, (b) providing consulting services during the development,      principal photography and post-production processes. |
| Streets      of Blood  (f/k/a Microwave Park) | Val      Kilmer,                                                                                        |                                                                                | Produced      by a third party financier.                                                                                            |   |   |   |             |   |                                                                                                                      |             |   |   |   |    |   |
|                                                    | Sharon      Stone, and                                                                                  | FMYR      provided production services.                                             |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   | 100,000 |
| 12-Jan                                                  | Curtis      "50 Cent" Jackson                                                                           | FMYR      will receive profit participation , if any, in the film.                  |                                                                                                                                 |   |   |   |             |   |                                                                                                                      |             |   |   |   |

----

| Picture                                |                                                                                                                     |                                                                                | Type      of                                                                                                                              |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |   |   |             |
|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|--------|------------------|--------|--------|------------------|
| Information                            | Principal      Talent                                                                                                    | Production      Services                                                            |                                                                                                                                      |   |   |   | Fiscal      2006                                                                                  |   | Fiscal      2007                                                                                                          | Fiscal      2008                                                                                                                            |
| (Estimated      Release)               |                                                                                                                     | Additionally,      FMYR will receive profit participation , if any, in the    film. |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |
| Theatrical                             |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |   |   |             |
|                                   |                                                                                                                     |                                                                                | Production      services prodived include:                                                                                                |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |
| Randall      Emmett & George Furla | (a)      negotiating for the acquisition of underlying property upon which the      movie will be based                  |                                                                                |                                                                                                                                      |   |
| Producers                              |                                                                                                                     |                                                                                | (b)      participated in the negotiation of the acting-services contracts for Val      Kilmer, Sharon Stone and Curtis "50 Cent" Jackson; |
|                                   |                                                                                                                     |                                                                                | as      well as, (c) providing consulting services during the development,      principal photography and post-production processes.      |
|                                   |                                                                                                                     |                                                                                |                                                                                                                                      |   | $      |   |                 - |   | $                                                                                                                         |                        - |                                                                                                                                                     |                - |   |   |             |
| Edgar      Allan Poe's Ligeia          | Wes      Bently,                                                                                                         | Produced      by a third party financier.                                           |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |
|                                   | Michael      Madsen, and                                                                                                 | FMYR      provided production services.                                             |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |
| 8-Jun                                  | Eric      Roberts.                                                                                                       | FMYR      will receive profit participation , if any, in the film.                  |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |
| (Estimated      Release)               |                                                                                                                     | Additionally,      FMYR will receive profit participation , if any, in the    film. |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |
| Theatrical                             |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |   |   |             |
|                                   |                                                                                                                     |                                                                                | Production      services prodived include:                                                                                                |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |
| Randall      Emmett & George Furla | (a)      providing consulting services during the development, principal      photography and post-production processes. |
| Producers                              |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |   |   |             |
|                                   |                                                                                                                     |                                                                                |                                                                                                                                      |   | $      |   |                 - |   | $                                                                                                                         |                        - |                                                                                                                                                     |                - |   |   |             |
|                                   |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   |                     - |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |
|                                   |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |   |   |             |
| Royalties      and other revenue       |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   | $1,134,832                                                                                        |   |                                                                                                                      |                                                                                                                                        |  $                        - | $155,651                                                                                    |
|                                   |                                                                                                                     |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   |                                                                                                                      |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |             |   |   |             |
| TOTAL                                  |          REVENUE                                                                                          |                                                                                |                                                                                                                                      |   |   |   |                                                                                              |   | $3,434,982                                                                                                                |                                                                                                                                        |                                                                                                                                                     |                                                                                        |   |   |  $1,603,345 |   |   |  $3,230,586 |

----

| Picture                                       |                        |                     | Type      of |   |   |   |             |      |             |             |   |                                                                                                                                              |                                                                                                                                              |   |    |   |       |       |
|-----------------------------------------------|-----------------------------|--------------------------|--------------|--------|--------|--------|------------------|-----------|------------------|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|------------|------------|
| Information                                   | Principal      Talent       | Production      Services |         |   |   |   | Fiscal      2006 |      | Fiscal      2007 | Fiscal      2008 |
| Revenue      by Customer (5)                  |                        |                     |         |   |   |   |             |      |             |             |   |                                                                                                                                              |                                                                                                                                              |   |    |   |
|     Nuimage/Millenium     | Producer      Fees          |                     |         |   |   |   |             | 2,300,000 |             |             |   | 1,500,000                                                                                                                                         |                                                                                                                                              |   |    |   | $625,000   |
| Nuimage/Milleniuem                            | Distribution      Guarantee | e)                       |         |   |   |   |             | 1,000,000 |             |             |   |                                                                                                                                              |                                                                                                                                              |   |    |   | $1,300,000 |
|     Lions      Gate Films |                        |                     |         |   |   |   |             |      |             |             |   |                  -                                           |                                                                                                                                              |   | 899,915 |
|     After      Dark       |                        |                     |         |   |   |   |             |      |             |             |   |                                                                                                                                              |                                                                                                                                              |   |    |   |       | 200,000    |
|     Regent      Films     |                        |                     |         |   |   |   |             | 2,771     |             |             |   |                  -                                           |                  -                                           |
|     Platium/'s      other |                        |                     |         |   |   |   |             | 22,211    |             |             |   |                         - |                         - |
|    Porchlight      Films       |                        |                     |         |   |   |   |             |      |             |             |   | 46,024                                                                                                                                            |                                                                                                                                              |   |    |   | 50,000     |
|    Monarch      Films          |                        |                     |         |   |   |   |             |      |             |             |   | 46,023                                                                                                                                            |                                                                                                                                              |   |    |   |       |
|     Other      Misc.      |                        |                     |         |   |   |   |             | 110,000   |             |             |   | 11,298                                                                                                                                            |                                                                                                                                              |   |    |   | 38,000     |
|                                          |                        |                     |         |   |   |   |             |      |             |             |   |                                                                                                                                              |                                                                                                                                              |   |    |   |       |       |
|                                          |                        |                     |         |   |   |   |             |      | $3,434,982       |             |   |                                                                                                                                              | $1,603,345                                                                                                                                        |   |    |   |       | $3,230,566 |
|                                          |                        |                     |         |   |   |   |             |      |             |             |   |                                                                                                                                              |                                                                                                                                              |   |    |   |       |       |

----

----

----

----

----

----

----

----

| 1.   | The      election of persons named in the accompanying Proxy Statement to serve as      directors on the Company’s board of directors (the “Board”) and until      their successors are duly elected andqualified; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | To      approve a reverse split of the Common Stock in an exchange ratio of one      newly issued share for each 200 outstanding shares of Common      Stock; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | To      approve an amendment to the Certificate of Incorporation to change the      Company’s common stock par value from $0.01 to a par value of $0.001;      and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | To      ratify the appointment of PMB Helin Donovan, LLP, as the Company’s      independent auditors for the fiscal year ending June 30,    2008. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                    | HIGH   | LOW    |
|-------------------------|--------|--------|
|                    | BID    | BID    |
| Fiscal 2007             |   |   |
| September      30, 2006 | $3.40  | $1.40  |
| December      30, 2006  | $1.00  | $0.80  |
| March      31, 2007     | $0.80  | $0.08  |
| June      30, 2007      | $0.22  | $0.06  |
|                    |   |   |
| Fiscal 2008             |   |   |
| September      30, 2007 | $0.18  | $0.01  |
| December      30, 2007  | $0.10  | $0.04  |
| March      31, 2008     | $0.08  | $0.02  |
| June      30, 2008      | $0.05  | $0.01  |

| Dollar      Amount    |      How      conversion rate was determined | Shares                            |
|-----------------------|-----------------------------------------------------------------------|-----------------------------------|
| Converted             |   Average      market price (A)                             |   Conversion      price | Issued |
| Represents      the   | The      market price used                                            | The      conversion price         | The      shares issued |
| Dollar      amount of | is      the average of the                                            | used      would be the            | would      be determined |
| the      convertible  | five      (5) lowest closing bid                                      | average      market               | by      dividing the |
| debt      being       | prices      of the Common                                             | price      derived (A)            | dollar      amount of the |
| converted             | Stock      as reported  by                                  | multiplied      by 80%,           | note      being converted |
|                  | Bloomberg      L.P. for the                                           | representing      a 20%           | by      the conversion |
|                  | twenty      (20) trading days                                         | discount      to the              | price. |
|                  | preceding      the conversion                                         | average      market price         |   |
|                  | date.                                                                 |                              | derived. |   |   |
|                  |                                                                  |                              |   |   |   |

----

|                                 |       |                         |       | Average    | Discounted       | Shares    | Shares   |
|--------------------------------------|------------|------------------------------|------------|------------|------------------|-----------|----------|
| Note                                 | Conversion | Dollar      Amount Converted | Market     | Conversion | Issued           | Issued    |
| Holder                               | Date       | Principal                    | Interest   | Price      | Price      (20%) | Principal | Interest |
|                                 |       |                         |       |       |             |      |     |
| Longview      Fund L.P.              | 11/16/2006 | $0.00                        | $5,793.60  | 0.96560    | 0.77248          | 0         | 7,500    |
| Longview      Equity Fund L.P.       | 11/16/2006 | $0.00                        | $11,587.20 | 0.96560    | 0.77248          | 0         | 15,000   |
| Longview      Int'l Equity Fund L.P. | 11/16/2006 | $0.00                        | $1,931.20  | 0.96560    | 0.77248          | 0         | 2,500    |
| Alpha      Capital AG                | 11/28/2006 | $10,000.00                   | $0.00      | 1.37500    | 1.10000          | 9,091     | 0        |
| Longview      Equity Fund L.P.       | 1/17/2007  | $0.00                        | $43,695.00 | 0.72825    | 0.58260          | 0         | 75,000   |
| Longview      Fund L.P.              | 1/17/2007  | $0.00                        | $21,847.50 | 0.72825    | 0.58260          | 0         | 37,500   |
| Longview      Int'l Equity Fund L.P. | 1/17/2007  | $1,394.94                    | $5,887.56  | 0.72825    | 0.58260          | 2,394     | 10,106   |
| Lawrence      Abramson               | 1/30/2007  | $37,500.00                   | $0.00      | 0.50000    | 0.40000          | 93,750    | 0        |
| Longview      Equity Fund L.P.       | 1/30/2007  | $43,838.08                   | $10,001.92 | 0.67320    | 0.53856          | 81,399    | 18,572   |
| Longview      Fund L.P.              | 1/30/2007  | $20,231.00                   | $3,997.00  | 0.67320    | 0.53856          | 37,565    | 7,422    |
| Longview      Int'l Equity Fund L.P. | 1/30/2007  | $7,752.64                    | $323.36    | 0.67320    | 0.53856          | 14,395    | 600      |
| Longview      Equity Fund L.P.       | 2/7/2007   | $6,868.11                    | $643.89    | 0.37560    | 0.30048          | 22,857    | 2,143    |
| Longview      Int'l Equity Fund L.P. | 2/9/2007   | $27,451.75                   | $196.25    | 0.34560    | 0.27648          | 99,290    | 710      |
| Standard      Resources Limited      | 2/21/2007  | $10,796.54                   | $14,135.81 | 0.25000    | 0.20000          | 53,983    | 70,679   |
| Longview      Int'l Equity Fund L.P. | 2/21/2007  | $27,635.14                   | $131.27    | 0.30000    | 0.24000          | 115,146   | 547      |
| Longview      Equity Fund L.P.       | 2/27/2007  | $14,772.00                   | $4,427.98  | 0.24040    | 0.19232          | 76,809    | 23,024   |
| Longview      Equity Fund L.P.       | 3/28/2007  | $4,792.15                    | $6,707.85  | 0.11560    | 0.09248          | 51,818    | 72,533   |
| Alpha      Capital AG                | 3/29/2007  | $2,312.00                    | $0.00      | 0.11560    | 0.09248          | 25,000    | 0        |
| Longview      Fund L.P.              | 4/4/2007   | $6,731.04                    | $5,886.96  | 0.07800    | 0.06240          | 107,869   | 94,342   |
| Standard      Resources Limited      | 4/4/2007   | $5,616.01                    | $6,551.99  | 0.07800    | 0.06240          | 90,000    | 105,000  |
| Longview      Equity Fund L.P.       | 4/5/2007   | $11,551.13                   | $616.87    | 0.07800    | 0.06240          | 185,114   | 9,886    |
| Alpha      Capital AG                | 4/11/2007  | $4,680.00                    | $0.00      | 0.07800    | 0.06240          | 75,000    | 0        |
| Lawrence      Abramson               | 4/12/2007  | $12,168.00                   | $0.00      | 0.07800    | 0.06240          | 195,000   | 0        |
| Longview      Equity Fund L.P.       | 4/9/2007   | $8,758.85                    | $601.15    | 0.07800    | 0.06240          | 140,366   | 9,634    |
| Longview      Fund L.P.              | 4/16/2007  | $11,246.60                   | $921.40    | 0.07800    | 0.06240          | 180,234   | 14,766   |
| Longview      Equity Fund L.P.       | 4/20/2007  | $3,913.02                    | $1,620.38  | 0.07320    | 0.05856          | 66,821    | 27,670   |
| Longview      Fund L.P.              | 4/19/2007  | $5,709.13                    | $0.00      | 0.07800    | 0.06240          | 91,492    | 0        |
| Longview      Fund L.P.              | 4/25/2007  | $5,120.46                    | $426.03    | 0.07320    | 0.05856          | 87,440    | 7,275    |
| Standard      Resources Limited      | 4/20/2007  | $11,388.00                   | $0.00      | 0.07300    | 0.05840          | 195,000   | 0        |
| Longview      Equity Fund L.P.       | 4/26/2007  | $4,613.75                    | $875.85    | 0.07320    | 0.05856          | 78,787    | 14,956   |
| Longview      Fund L.P.              | 4/27/2007  | $4,791.46                    | $138.54    | 0.07300    | 0.05840          | 82,046    | 2,372    |
| Longview      Equity Fund L.P.       | 4/30/2007  | $12,665.38                   | $577.62    | 0.08080    | 0.06464          | 195,937   | 8,936    |
| Standard      Resources Limited      | 4/30/2007  | $14,179.97                   | $0.00      | 0.08080    | 0.06464          | 219,368   | 0        |
| Alpha      Capital AG                | 5/1/2007   | $3,424.00                    | $0.00      | 0.08560    | 0.06848          | 50,000    | 0        |
| Longview      Equity Fund L.P.       | 5/1/2007   | $13,580.68                   | $270.32    | 0.08550    | 0.06840          | 198,548   | 3,952    |
| Longview      Equity Fund L.P.       | 5/15/2007  | $12,139.18                   | $1,626.32  | 0.08550    | 0.06840          | 177,473   | 23,777   |
| Longview      Fund L.P.              | 5/14/2007  | $12,531.15                   | $1,148.85  | 0.08560    | 0.06848          | 182,990   | 16,776   |
| Longview      Fund L.P.              | 5/16/2007  | $13,519.17                   | $126.83    | 0.08560    | 0.06848          | 197,418   | 1,852    |
| Longview      Equity Fund L.P.       | 5/18/2007  | $14,276.99                   | $270.95    | 0.09025    | 0.07220          | 197,742   | 3,753    |
| Longview      Fund L.P.              | 5/18/2007  | $14,435.43                   | $58.72     | 0.09026    | 0.07220          | 199,937   | 813      |
| Alpha      Capital AG                | 5/18/2007  | $14,464.00                   | $0.00      | 0.09040    | 0.07232          | 200,000   | 0        |
| Longview      Fund L.P.              | 5/21/2007  | $14,984.79                   | $215.21    | 0.09520    | 0.07616          | 196,754   | 2,826    |
| Longview      Equity Fund L.P.       | 5/22/2007  | $20,767.57                   | $622.43    | 0.10000    | 0.08000          | 259,595   | 7,780    |

----

|                            |       |                         |      | Average    | Discounted       | Shares    | Shares   |
|---------------------------------|------------|------------------------------|-----------|------------|------------------|-----------|----------|
| Note                            | Conversion | Dollar      Amount Converted | Market    | Conversion | Issued           | Issued    |
| Holder                          | Date       | Principal                    | Interest  | Price      | Price      (20%) | Principal | Interest |
| Standard      Resources Limited | 5/22/2007  | $15,304.57                   | $695.43   | 0.10000    | 0.08000          | 191,307   | 8,693    |
| Longview      Equity Fund L.P.  | 5/29/2007  | $20,524.07                   | $835.93   | 0.10000    | 0.08000          | 256,551   | 10,449   |
| Standard      Resources Limited | 6/7/2007   | $16,800.00                   | $0.00     | 0.08400    | 0.06720          | 250,000   | 0        |
| Alpha      Capital AG           | 6/13/2007  | $4,848.00                    | $0.00     | 0.08080    | 0.06464          | 75,000    | 0        |
| Longview      Equity Fund L.P.  | 6/18/2007  | $13,671.74                   | $2,136.26 | 0.07600    | 0.06080          | 224,864   | 35,136   |
| Longview      Fund L.P.         | 6/18/2007  | $14,857.78                   | $1,315.02 | 0.07600    | 0.06080          | 244,371   | 21,629   |
| Longview      Fund L.P.         | 6/19/2007  | $15,607.55                   | $43.65    | 0.07300    | 0.05840          | 267,253   | 747      |
| Standard      Resources Limited | 6/19/2007  | $15,651.20                   | $0.00     | 0.07300    | 0.05840          | 268,000   | 0        |
| Longview      Equity Fund L.P.  | 6/20/2007  | $15,421.03                   | $215.57   | 0.07320    | 0.05856          | 263,337   | 3,681    |
| Longview      Equity Fund L.P.  | 6/21/2007  | $15,052.26                   | $102.54   | 0.07320    | 0.05856          | 257,040   | 1,751    |
| Longview      Fund L.P.         | 6/22/2007  | $15,360.99                   | $115.01   | 0.07300    | 0.05840          | 263,031   | 1,969    |
| Longview      Fund L.P.         | 6/26/2007  | $15,045.80                   | $132.44   | 0.07040    | 0.05632          | 267,148   | 2,352    |
| Longview      Fund L.P.         | 6/28/2007  | $14,203.28                   | $66.22    | 0.06760    | 0.05408          | 262,635   | 1,224    |
| Standard      Resources Limited | 6/29/2007  | $7,638.80                    | $0.00     | 0.06760    | 0.05408          | 141,250   | 0        |
| Miscellaneous                   |       | $2,677.82                    | -$418.88  |       |             | 11,755    | -8,426   |
| Total                           |       | 675,265                      | 159,103   |       |             | 7,777,971 | 779,408  |

----

| 1.   | Producers Fees      – Producer fees are recognized upon receipt of the fees and delivery of      the related services.  If upon receipt of the fees all services      have not been provided, the fees are deferred and recognized as the      services are performed; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Royalties –      Royalty and profit participation are recognized when the amounts are known      and the receipt of the royalties is reasonably      assured.  Accordingly, recognition generally occurs upon receipt      (usually quarterly or semi-annually);and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Distribution Revenues      – Distribution Revenues are recognized when earned and      appropriately reported by third (3) party Distribution companies and      recorded Gross along with any distribution expenses charged by the      Distributor and upon receipt of suchrevenues. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.            Producer      Development, Production Service Fees and Film Distribution Fees –      As these services are provided, these fees are invoiced by FMYR to the      third party financiers and producers and are recognized when the amount      has been determined and receipt is reasonably    assured.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Selling,      general and administrative Expenses |                                                     |                                           |                                                           |                                           |                                                      |                                                 |     |                         |                   |
|---------------------------------------------------|----------------------------------------------------------|------------------------------------------------|----------------------------------------------------------------|------------------------------------------------|-----------------------------------------------------------|------------------------------------------------------|----------|------------------------------|------------------------|
|                                              |                                                     | Twelve      months ending                      |                                                           |                                           |                                                      |                                                 |     |                         |                   |
|                                              |                                                     |                                           |                                                           |                                           |                                                      |                                                 |     |                         |                   |   |   |   |   |
| Account                                           |                                                     | June      30                                   |                                                           | June      30                                   |                                                      | Variance                                             | Variance | Explanation      of Variance |                   |
| Description                                       |                                                     | 2008                                           |                                                           | 2007                                           |                                                      | $                                                    |     | %                            |                   |   |   |   |   |
|                                              |                                                     |                                           |                                                           |                                           |                                                      |                                                 |     |                         |                   |   |   |   |   |
| Salary      and Wages                             |  $       226,807 |                                           |  $        293,510 |                                           |  $       (66,703) |                                                 | -22.7%   |                         | Reduced      headcount |   |
| Payroll      related expenses                     |                                                     | 169,197.00                                     |                                                           | 221,373.00                                     |                                                      | (52,176.00)                                          |     | -23.6%                       |                   | Reduced      headcount |   |   |
| Office      Overhead                              |                                                     | 145,735.00                                     |                                                           | 124,097.00                                     |                                                      | 21,638.00                                            |     | 17.4%                        |                   | $10K      Bank Charges, $20K Business Ins., |   |
|                                              |                                                     |                                           |                                                           |                                           |                                                      |                                                 |     |                         |                   | ($28K)      Equipment rental, $7K Misc. |   |
| Telephone                                         |                                                     | 95,266.00                                      |                                                           | 64,086.00                                      |                                                      | 31,180.00                                            |     | 48.7%                        |                   | $3K      Phone, $21K Cell services, $7K Internet/cable |
| Automobile                                        |                                                     | 42,874.00                                      |                                                           | 82,041.00                                      |                                                      | (39,167.00)                                          |     | -47.7%                       |                   | Two      less cars |   |   |   |
| Depreciation                                      |                                                     | 46,710.00                                      |                                                           | 27,711.00                                      |                                                      | 18,999.00                                            |     | 68.6%                        |                   | leasehold      improvements & comp equip/software |
| Bad      Debt                                     |                                                     | 73,000.00                                      |                                                           | 205,000.00                                     |                                                      | (132,000.00)                                         |     | -64.4%                       |                   | $73K      is a reserve, the $205K represents write-offs |
| Miscellaneous                                     |                                                     | 469,468.00                                     |                                                           | 471,161.00                                     |                                                      | (1,693.00)                                           |     | -0.4%                        |                   |   |   |   |   |
| Total                                             |                                                     |  $     1,269,057 |                                                           |  $     1,488,979 |                                                      |  $      (219,922) |     | -14.8%                       |                   |   |   |   |   |

----

| Other      Income and expenses                                                            |   | Twelve      months ending                                                  |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|----------|------------------------------|-----------------------------------------------------------------------------|--------|
| Account                                                                                   |   | June      30                                                               |   | June      30                                                               |   | Variance                                                                                                     |   | Variance | Explanation      of Variance |                                                                        |
| Description                                                                               |   | 2008                                                                       |   | 2007                                                                       |   | $                                                                                                            |   | %        |                         |                                                                        |   |   |   |
| (Income)/Expense                                                                          |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |   |   |
| Interest      income                                                                      |   |  $          (2,878) |   |  $          (4,396) |   |  $                1,518 |   | -34.5%   |                         |                                                                        |   |   |   |
|                                                                                      |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |   |   |
| Other      income                                                                         |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |   |   |
|           Material      other income    |   | (380,000)                                                                  |   |                                                                       |   | (380,000)                                                                                                    |   | -        |                         | Gain      on disposition of notes                                           |   |   |
|           Production      recharge      |   |                                                                       |   | (28,848)                                                                   |   | 28,848                                                                                                       |   | -        |                         |                                                                        |   |   |   |
| Total      other income                                                                   |   | (380,000)                                                                  |   | (28,848)                                                                   |   | (351,152)                                                                                                    |   | 1217.2%  |                         |                                                                        |   |   |   |
|                                                                                      |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |   |   |
| Change      in value of derivatives                                                       |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |   |   |
|           Warrant      Liability        |   | (855,615)                                                                  |   | (214,904)                                                                  |   | (640,711)                                                                                                    |   | 298.1%   |                         | Reduction      in fair value of warrant and derivative                      |
|           Derivative      Liability     |   | 25,209                                                                     |   | (555,482)                                                                  |   | 580,691                                                                                                      |   | -104.5%  |                         |     liabilities      associates with convertible notes. |   |
| Total      change of Value of derivatives                                                 |   | (830,406)                                                                  |   | (770,386)                                                                  |   | (60,020)                                                                                                     |   | 7.8%     |                         | Please      see Footnote 8 to the financial statements                      |
|                                                                                      |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |      for      a detailed analysis of these items.  |   |
| Interest      expense                                                                     |   |                                                                       |   |                                                                       |   |                                                                                                         |   |     |                         |                                                                        |   |   |   |
|           Afilliated                    |   | 619,561                                                                    |   | 1,557,441                                                                  |   | (937,880)                                                                                                    |   | -60.2%   |                         | Interest      expense - convertible debt                                    |   |
|           Afilliated      - Development |   | 20,529                                                                     |   | 38,499                                                                     |   | (17,970)                                                                                                     |   | -46.7%   |                         | Interest      expense - other notes payable                                 |   |
| Total      interest expense                                                               |   | 640,090                                                                    |   | 1,595,940                                                                  |   | (955,850)                                                                                                    |   | -59.9%   |                         |                                                                        |   |   |   |
| Total      Other Income and Expenses                                                      |   |  $      (573,194)                       |   |  $        792,310             |   |  $    (1,365,504)                                                                   |   | -172.3%  |                         |                                                                        |   |   |   |

| Liquidity and Capital    Resources                         |   |                                                                 |   |                                                                                          |   |   |   |   |   |   |   |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                       |   |                                                                 |   |                                                                                          |   |   |   |   |   |   |   |   |
|                                                       |   | June                                                                 |   |                                                                                          |   |   |   |   |   |   |   |   |
| Major      items affecting liquidity and capital resources |   | 2008                                                                 |   | Explanation      of Variance                                                                  |   |   |   |   |   |   |
|                                                       |   |                                                                 |   |                                                                                          |   |   |   |   |   |   |   |   |
| Amortization      of film costs                            |   | $     2,893,725                             |   | Film      projects amort against producer fee revenues and/or    write-offs                   |   |
|                                                       |   |                                                                 |   |     based      on management's evaluation.                                |   |   |   |   |
| Change      in value of warrant liabilities                |   |  $     (871,631)                       |   | Reduction      in fair value of warrants associated to convertible debt                       |   |
| Change      in value of derivative liabilities             |   | $          41,252  |   | Increase      in Fair value of derivative liabilities a result of additional debt      issued |
| Amortization      of debt discount                         |   | $        442,065             |   | Debt      discount amortized                                                                  |   |   |   |   |   |   |
| Gain      on disposition of invrestor participation loan   |   |  $      (380,000)                 |   | Gain      on note no longer owed                                                              |   |   |   |   |   |   |
| increase      in accounts receivable - Borderland          |   |  $      (536,894)                 |   | $697K  due      less $160K cash received                                            |   |   |   |   |
| (Increase)      decrease in film costs                     |   |  $   (1,033,434)                                 |   | Write-off      of uncollectible production service fee (Shattos)                              |   |   |
| Purchase      of property and equipment                    |   |  $        (25,871)      |   | Purchase      of computers                                                                    |   |   |   |   |   |   |
| Proceeds      from advance under development agreement     |   |  $         700,000 |   | Proceeds      mainly from investor development and particiaption loans                        |   |
| Payments      of advance under development agreement       |   |  $   (1,115,000)                                 |   | Payments      to investor pursuant to a development & participation      agreements       |
| Purchase      of common stock                              |   |  $        (50,470)      |   | Treasury      shares purchases - cash                                                         |   |   |   |   |
| Proceeds      from convertible notes payable               |   |  $         300,000 |   | Cash      received                                                                            |   |   |   |   |   |   |   |
| Payment      on convertible interest                       |   |  $        (26,164)      |   | Cash      payments                                                                            |   |   |   |   |   |   |
| Payment      on convertible notes payable                  |   |  $        (40,000)      |   | Cash      payments                                                                            |   |   |   |   |   |   |

----

----

| The recurring cash commitments of FMYR at June      30,  2008 are as follows:    |                                                                                                              |
|--------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                                                                                       |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Future      annual debt maturities (including the convertible notes net of      discount): |                                                                                                              |
|                                                                                       |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | Year      Ending                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | June      30,                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | 2008                                                                                                              |   |   |   |   |   |   |   |   | $ |   2,199,701 |   |
|                                                                                       |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |                        Total |   |   |   |   |   |   |   |   | $ |   2,199,701 |   |
|                                                                                       |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |

| Accounts      payable and accrued liabilities:                                                                       |                                                                                                              |
|----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Description                                                                                                          |                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|            Accounts      payable                              |                                                                                                              |   |   |   |   |   |   |   | $ | 66,534 |   |
|            Accrued      Interest, professional fees and other |                                                                                                              |   |   |   |   |   |   | 195,709 |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 | Total                                                                                                             |   |   |   |   |   |   |   |   | $ | 262,243 |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|  Future      annual minimum lease payments under operating leases:                                              |                                                                                                              |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 | Period      Ending                                                                                                |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 | June  30,                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   | $ |   |   |
|                                                                                                                 | 2009                                                                                                              |   |   |   |   |   |   |   |   |   |       38,400 |   |
|                                                                                                                 | 2010                                                                                                              |   |   |   |   |   |   |   |   |   | - |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |                        Total |   |   |   |   |   |   |   |   | $ |       38,400 |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Estimated      fixed recurring monthly average selling, general and administrative      expenses:                    |                                                                                                              |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Description                                                                                                          |                                                                                                              |   |   |   |   |   |   |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,      consultants and benefits                                                                              |                                                                                                              |   |   |   |   | $ |      18,000 |   |
| Rent                                                                                                                 |                                                                                                              |   |   |   |   |   |           3,200 |   |
| Parking                                                                                                              |                                                                                                              |   |   |   |   |   | 500 |   |
| Telephone      and communications                                                                                    |                                                                                                              |   |   |   |   |   |        23,250 |   |
| Directors,      officers and corporate insurance                                                                     |                                                                                                              |   |   |   |   |   |         1.000 |   |
| Accounting      and auditing                                                                                         |                                                                                                              |   |   |   |   |   |          7,000 |   |
|                                                                                                                 |                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 | Total                                                                                                             |   |   |   |   |   |   |   |   | $ |       31,950 |   |

----

----

| Tau      Entertainment (Elisa Salinas) | $      | 204,067 |
|----------------------------------------|--------|---------|
| Scorched      Earth Entertainment      |   | 74,851  |
| Freedom      Films                     |   | 308,874 |
|                                   | $      | 587,792 |

----

----

----

| (i)          | require      the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of our      assets; |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)         | provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles and that receipts and expenditures of Family Room      Entertainment are being made in accordance with authorizations of      management and directors of Family Room  Entertainment; |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use, or disposition of Family Room      Entertainment’s assets that could have a material effect on the financial      statements, |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Deficiencies      in Segregation of Duties. Family Room Entertainment lacked adequate      segregation of duties in our financial reporting process, as our Acting      CFO serves as our only qualified internal accounting and financial      reporting personnel, and as such, performs substantially all accounting      and financial reporting functions with the assistance of an inexperienced      internal staff. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|

----

----

| ITEM      9. | Directors,      Executive Officers, Promoters and Control Persons; Compliance with Section      16(a) of the Exchange Act |
|--------------|---------------------------------------------------------------------------------------------------------------------------|

----

----

| SUMMARY      COMPENSATION TABLE                                                                |
|------------------------------------------------------------------------------------------------|
| Name      and principal position                                                          | Year  | Salary      ($)  | Bonus      ($)  | Stock      Awards ($)  | Option      Awards ($)  | Non-Equity      Incentive Plan Compensation ($)  | Nonqualified      Deferred Compensation Earnings ($)  | All      Other Compensation ($)  | Total      ($)  |
|             George      Furla.     |            2008 |  0 |  0 |  0 |  0 |  0 |  0 | 176,856 | 176,856 |
| Co-Chairman                                                                                    |  2007 |  0 |  0 |  0 |  0 |  0 |  0 |  669,825 |  669,825 |
| CEO      & President                                                                       |  2006 |  0 |  0 |  0 |  0 |  0 |  0 |  549,819 |  549,819 |
|                                                                                           |   |   |   |   |   |   |   |   |   |
| Randall      Emmett                                                                            |  2008 |  0 |  0 |  0 |  0 |  0 |  0 | 400,957 | 400,957 |
| Co-Chairman                                                                                    |  2007 |  0 |  0 |  0 |  0 |  0 |  0 | 752,050 | 752,050 |
| COO      & Assistant                                                                       |  2006 |  0 |  0 |  0 |  0 |  0 |  0 | 722,043 | 722,043 |
| Secretary                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |
| Stanley      Tepper                                                                            |  2008 |  0 |  0 |  0 |  0 |  0 |  0 | 75,000 | 75,000 |
| Acting      Executive                                                                          |  2007 |  0 |  0 |  0 |  0 |  0 |  0 | 36,000 | 36,000 |
| VP      of Finance %                                                                           |  2006 |  0 |  0 |  0 |  0 |  0 |  0 | 50,000 | 50,000 |
|                    Acting CFO |   |   |   |   |   |   |   |   |   |

----

| OUTSTANDING      EQUITY AWARDS AT FISCAL YEAR-END |
|---------------------------------------------------|
| OPTION      AWARDS                                | STOCK      AWARDS |
| Name                                         | Number      of Securities Underlying Unexercised Options(#)Exercisable  | Number      of Securities Underlying Unexercised Options(#)Unexercisable  | Equity      Incentive Plan Awards: Number of Securities Underlying Unexercised      Unearned Options(#)  | Option      Exercise Price($)  | Option      Expiration Date  | Number      of Shares or Units of Stock That Have Not Vested(#)  | Market      Value of Shares or Units of Stock That Have Not Vested($)  | Equity      Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights      That Have Not Vested(#)  | Equity      Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or      Other Rights That Have Not Vested(#)  |
| George      Furla.                                |  O |  o |  o |  o |  o |  o |  o |  o |  o |
| RandallEnmmett                                    |  O |  o |  o |  o |  o |  o |  o |  o |  o |
| StanleyTepper                                     |  O |  o |  o |  o |  o |  o |  o |  o |  o |

| DIRECTOR      COMPENSATION |
|----------------------------|
| Name                  | Fees      Earned or Paid in Cash($)  | Stock      Awards ($)  | Option      Awards ($)  | Non-Equity      IncentivePlan      Compensation($)  | Non-Qualified      Deferred Compensation Earnings($)  | AllOther      Compensation ($)  | Total      ($)  |   |   |
| George      Furla          |  0 |  0 |  0 |  0 |  0 |  0 |  0 |   |   |
| Randall      Emmett        |  0 |  0 |  0 |  0 |  0 |  0 |  0 |   |   |
| AnthonyCataldo             |  0 |  0 |  0 |  0 |  0 |  0 |  0 |   |   |

----

----

| 31.1   | Certification      of the Chief Executive Officer pursuant to Rule  13a-14(a) |
|------------------|-------------------------------------------------------------------------------|

| 31.2   | Certification      of the Chief Financial Officer pursuant to Rule  13a-14(a) |
|------------------|-------------------------------------------------------------------------------|

| 32.1   | Certification      of the Chief Executive Officer pursuant to 18  U.S.C.ss.1350 |
|------------------|---------------------------------------------------------------------------------|

| 32.2   | Certification      of the Chief Financial Officer pursuant to 18  U.S.C.ss.1350 |
|------------------|---------------------------------------------------------------------------------|

| (b)     | Reports      on Form 8-K                                                                         |
|---------|--------------------------------------------------------------------------------------------------|
| Date    | Subject                                                                                          |
| 2/29/08 | ITEM      5.02,  7.01:  Appointment of director, name and symbol      change |
| 9/2/08  | ITEM      8.01: Address change, and sharesoutstanding                                            |

----

|                    | For      the Year Ended June 30, |
|-------------------------|----------------------------------|
|                    | PMB      Helin Donovan, LLP      | PMB      Helin Donovan, LLP . |
|                    | 2008                             | 2007 |
| Audit      Fees         |     75,000   | $67,000 |
| Audit-Related      Fees | -                                | $- |
| Tax      Fees           | -                                | $- |
| All      Other Fees     | -                                | $- |
| Total      Fees         | 75,000                           | $67,000 |

----

----

----

| Report      of Independent Registered Public Accountants          | 1                 |
|-------------------------------------------------------------------|-------------------|
|  Consolidated      Balance Sheets                            | 2                 |
|  Consolidated      Statements of Operations                  | 3                 |
|  Consolidated      Statements of Shareholders’ Deficit | 4                 |
|  Consolidated      Statements of Cash Flows                  | 5                 |
|  Notes      to Consolidated Financial Statements             | 6 –      34 |

----

----

|                                       |                                                                     |                                                                  |                                                           |                                        |                                             | 2008              |         | 2007    |
|--------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------|----------------------------------------------------------------|---------------------------------------------|--------------------------------------------------|-------------------|--------------|---------|
| Assets                                     |                                                                     |                                                                  |                                                           |                                        |                                             |              |         |
|                                       | Cash      and cash equivalents                                           | $                                                                     | 48,843                                                         |                                        | $                                                | 668,773           |
|                                       | Accounts      receivable (net of reserve of $73,000 and $0,respectively) |                                                                  | 711,894                                                        |                                        |                                             |  -           |
|                                       | Film      costs, net                                                     |                                                                  | 4,744,914                                                      |                                        |                                             | 6,605,205         |
|                                       | Property      and equipment, net                                         |                                                                  | 37,528                                                         |                                        |                                             | 58,168            |
|                                       | Prepaid      expenses and other current assets                           |                                                                  | 7,660                                                          |                                        |                                             | 63,959            |
|                                       | Deposits                                                                 |                                                                  | 18,270                                                         |                                        |                                             | 18,270            |
|                                       |                                                                     |                                                                  |                                                           |                                        |                                             |              |         |    |   |   |
|                                       |                                                                     |                                                                  |                                                           |                                        | Total      Assets                                | $                 | 5,569,109    |    | $ | 7,414,375 |
|                                       |                                                                     |                                                                  |                                                           |                                        |                                             |              |         |    |   |   |
|                                       |                                                                     |                                                                  |                                                           |                                        |                                             |              |         |    |   |   |
| Liabilities      and Shareholders' Deficit |                                                                     |                                                                  |                                                           |                                        |                                             |
|                                       | Liabilities                                                              |                                                                  |                                                           |                                        |                                             |              |
|                                       |                                                                     | Notes      payable under film participation agreements                | $                                                              | 5,969,921                                   |                                             | $                 | 7,957,412    |
|                                       |                                                                     | Convertible      notes payable, net of discount                       |                                                           | 2,199,701                                   |                                             |              | 508,419      |
|                                       |                                                                     | Accounts      payable and accrued liabilities                         |                                                           | 259,443                                     |                                             |              | 239,696      |
|                                       |                                                                     | Warrant      liability                                                |                                                           | 52,528                                      |                                             |              | 924,159      |
|                                       |                                                                     | Derivative      liability                                             |                                                           | 602,194                                     |                                             |              | 445,159      |
|                                       |                                                                     |                                                                  |                                                           | Total      Liabilities                      |                                             | 9,083,787         |         |    | 10,074,845 |
|                                       |                                                                     |                                                                  |                                                           |                                        |                                             |              |         |    |   |   |
|                                       | Equity      and Shareholders' Deficit                                    |                                                                  |                                                           |                                        |                                             |              |
|                                       |                                                                     | Preferred      stock:$0.01 par value; 5,000,000 shares authorized;    |                                                           |                                        |                                             |              |         |
|                                       |                                                                     |                                                                  | no      shares issued and outstanding                          |                                        |  -                                          |              |         |  - |
|                                       |                                                                     | Common      stock:$0.001 par value; 2,000,000,000 shares authorized;  |                                                           |                                        |                                             |              |         |
|                                       |                                                                     |                                                                  | 12,141,870      and 9,996,500 shares issued, respectively, and |                                        |                                             |              |         |    |
|                                       |                                                                     |                                                                  | 12,014,470      and 9,346,416 shares outstanding, respectively |                                        | 12,141                                           |              |         | 9,997   |
|                                       |                                                                     | Additional      paid-in capital                                       |                                                           | 20,603,609                                  |                                             |              | 20,692,540   |
|                                       |                                                                     | Treasury      stock, 127,400 and 178,029 shares at cost, respectively |                                                           | (13,136)                                    |                                             |              | (87,653)     |
|                                       |                                                                     | Accumulated      deficit                                              |                                                           | (24,117,292)                                |                                             |              | (23,275,354) |
|                                       |                                                                     |                                                                  |                                                           | Total      Equity and Shareholders' Deficit |                                             |  (3,514,678) |         |    |  (2,660,470) |
|                                       |                                                                     |                                                                  |                                                           |                                        |                                             |              |         |    |   |   |
|                                       |                                                                     |                                                                  |                                                           |                                        | Total      Liabilities and Shareholders' Deficit | $                 | 5,569,109    |    | $ | 7,414,375 |

----

|                                                                            |                                                                                                                                    |   |                                 |          |   | 2008         |         | 2007   |
|---------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------------|--------|--------------|--------------|--------|
| Gross      Margin                                                               |                                                                                                                                    |   |                                 |          |   |         |
|                                                                            | Revenues                                                                                                                                |   | $                                    | 3,230,567     |   | $            | 1,611,298    |
|                                                                            | Amortization      of film costs                                                                                                         |   |                                 | (2,893,725)   |   |         | (2,563,335)  |
|                                                                            | Distribution      costs                                                                                                                 |   |                                 | (482,914)     |   |         | (7,953)      |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
|                                                                            |                                                                                                                                    |   | Gross      Margin                    |          |   | (146,072)    |         |   |  (959,990) |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
| Selling,      general and administrative expenses      (1)                      |                                                                                                                                    |   | (1,269,060)                          |          |   | (1,488,979)  |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
|                                                                            |                                                                                                                                    |   | Loss      from Operations            |          |   | (1,415,132)  |         |   | (2,448,969) |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
| Other      Income and Expenses                                                  |                                                                                                                                    |   |                                 |          |   |         |
|                                                                            | Interest      income                                                                                                                    |   |                                 | 2,878         |   |         | 4,396        |
|                                                                            | Other      income                                                                                                                       |   |                                 | 380,000       |   |         |  28,848 |
|                                                                            | Change      in value of warrant liability                                                                                               |   |                                 | 871,658       |   |         | 216,737      |
|                                                                            | Change      in value of derivative liability                                                                                            |   |                                 | (41,252)      |   |         | 553,649      |
|                                                                            | Interest      expense                                                                                                                   |   |                                 | (640,090)     |   |         | (1,595,940)  |
|                                                                            |                                                                                                                                    |   | Total      Other Income and Expenses |          |   | 573,194      |         |   |  (792,310) |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
|                                                                            |                                                                                                                                    |   |                                 | Net      Loss |   | $            | (841,938)    |   | $ | (3,241,279) |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
| Net      earnings/(loss) per common share, basic                                |                                                                                                                                    | $      |  (0.09)                         |          | $      |  (1.37) |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
| Weighted      average number of shares, basic                                   |                                                                                                                                    |   | 9,601,317                            |          |   | 2,364,805    |
|                                                                            |                                                                                                                                    |   |                                 |          |   |         |         |   |   |   |
| (1)         Non-cash share-based compensation included  in  |
|                                                                            |                     Selling, general and administrative expenses: |   | $                                    | 38,200        |   | $            |  66,600 |

----

|                                              |              |   |    |         |     | Additional |             |   |    |     |   |   |            |   |   |
|---------------------------------------------------|-------------------|--------|---------|--------------|----------|------------|------------------|--------|---------|----------|--------|--------|-----------------|--------|--------|
|                                              | Common      Stock |   | Paid-In |         | Treasury |       | Accumulated      |   |    |     |
|                                              | Shares            |   | Amount  |         | Capital  |       | Stock            |   | Deficit |     | Total  |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Balance      at June 30, 2006                     | 999,121           |   | $       | 999          |     | $          |  19,691,270 |   | $       |  -  |   | $      | (20,034,112)    |   | $      |  (341,843) |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Purchase      of common stock                     |  -           |   |    |  -      |     |       |  -          |   |    | (87,653) |   |   |  -         |   |   | (87,653) |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Common      stock issued for convertible interest | 779,408           |   |    | 780          |     |       | 158,323          |   |    |  -  |   |   |  -         |   |   | 159,103 |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Common      stock issued for note principal       | 7,777,971         |   |    | 7,778        |     |       | 667,487          |   |    |  -  |   |   |  -         |   |   | 675,265 |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Common      stock issued for services             | 440,000           |   |    | 440          |     |       | 175,460          |   |    |  -  |   |   |  -         |   |   | 175,900 |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Miscellaneous      adjustment                     |  -           |   |    |  -      |     |       |  -          |   |    |  -  |   |   |  37        |   |   |  37 |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Net      loss                                     |  -           |   |    |  -      |     |       |  -          |   |    |  -  |   |   | (3,241,279)     |   |   | (3,241,279) |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Balance      at June 30, 2007                     | 9,996,500         |   |    | 9,997        |     |       |  20,692,540 |   |    | (87,653) |   |   | (23,275,354)    |   |   | (2,660,470) |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Purchase      of common stock                     |  -           |   |    |  -      |     |       |  -          |   |    | (50,470) |   |   |  -         |   |   | (50,470) |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Retirement      of treasury shares                |  (522,684)   |   |    |  (522)  |     |       |  (124,465)  |   |    | 124,987  |   |   |  -         |   |   |  - |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Effect      of reverse split (rounding)           | 1,384             |   |    |  -      |     |       |  -          |   |    |  -  |   |   |  -         |   |   |  - |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Common      stock issued for services             | 2,666,667         |   |    | 2,666        |     |       |  35,534     |   |    |  -  |   |   |  -         |   |   |  38,200 |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Net      loss                                     |  -           |   |    |  -      |     |       |  -          |   |    |  -  |   |   |  (841,938) |   |   |  (841,938) |
|                                              |              |   |    |         |     |       |             |   |    |     |   |   |            |   |   |   |
| Balance      at June 30, 2008                     |  12,141,867  |   | $       |  12,141 |     | $          |  20,603,609 |   | $       | (13,136) |   | $      | (24,117,292)    |   | $      | (3,514,678) |

----

|                                                    |                                                                   |                                                                     |                                                      | 2008            |            | 2007            |
|---------------------------------------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------|-----------------|-----------------|-----------------|
| Cash      Flows From Operating Activities:              |                                                                   |                                                                     |                                                      |            |            |
|                                                    | Net      loss                                                          | $                                                                        |  (841,938)                                           |            | $               | (3,241,279)     |
|                                                    | Adjustment      to reconcile net loss to net cash used:                |                                                                     |                                                      |            |            |            |
|                                                    |                                                                   | Depreciation      expense                                                |                                                      |  46,710    |            |            |  27,711 |
|                                                    |                                                                   | Amortization      of film costs                                          |                                                      | 2,893,725       |            |            | 2,563,335 |
|                                                    |                                                                   | Bad      debt (reserve for doubtful accounts)                            |                                                      |  73,000    |            |            |  - |
|                                                    |                                                                   | Gain      on disposition of investor participation loans                 |                                                      |  (380,000) |            |            |  - |
|                                                    |                                                                   | Common      stock issued for accrued interest                            |                                                      |  -         |            |            | 159,103 |
|                                                    |                                                                   | Common      stock issued for services and compensation                   |                                                      |  38,200    |            |            | 175,900 |
|                                                    |                                                                   | Change      in value of warrant liability                                |                                                      |  (871,658) |            |            |  (216,737) |
|                                                    |                                                                   | Change      in value of derivative liability                             |                                                      | 41,252          |            |            | (553,649) |
|                                                    |                                                                   | Amortization      of debt discount                                       |                                                      | 442,065         |            |            | 1,038,469 |
|                                                    |                                                                   | Interest      recognized in connection with issuance of convertible debt |                                                      |  -         |            |            | 384,975 |
|                                                    |                                                                   | Amortization      of loan costs                                          |                                                      |  -         |            |            | (47,940) |
|                                                    |                                                                   | Other                                                                    |                                                      | (173)           |            |            |  12,048 |
|                                                    | Change      in operating assets and liabilities:                       |                                                                     |                                                      |            |            |            |
|                                                    |                                                                   | (Increase)      decrease in accounts receivable – new              |                                                      |  (248,000) |            |            | (1,500,000) |
|                                                    |                                                                   | (Increase)      decrease in accounts receivable – DOD              |                                                      |  -         |            |            | 350,000 |
|                                                    |                                                                   | (Increase)      decrease in accounts receivable - Rambo IV               |                                                      |  -         |            |            | 1,500,000 |
|                                                    |                                                                   | Write-down      of accounts receivable                                   |                                                      |  -         |            |            | 205,000 |
|                                                    |                                                                   | (Increase)      decrease in accounts receivable – Borderland       |                                                      |  (536,894) |            |            |  - |
|                                                    |                                                                   | (Increase)      decrease in film costs                                   |                                                      | (1,033,434)     |            |            | (3,366,632) |
|                                                    |                                                                   | (Increase)      decrease in other assets                                 |                                                      |  55,365    |            |            |  34,533 |
|                                                    |                                                                   | Increase      (decrease) in accounts payable and accrued liabilities     |                                                      | 46,845          |            |            | (4,689) |
|                                                    |                                                                   |                                                                     | Net      cash generated by/(used in) operating activities |            | (274,935)       |            |   | (2,479,852) |
|                                                    |                                                                   |                                                                     |                                                      |            |            |            |   |   |
| Cash      flows from investing activities:              |                                                                   |                                                                     |                                                      |            |            |
|                                                    | Purchase      of property and equipment                                |                                                                     | (25,871)                                                  |            |            | (20,995)        |
|                                                    |                                                                   |                                                                     | Net      cash generated by/(used in) investing activities |            | (25,871)        |            |   | (20,995) |
|                                                    |                                                                   |                                                                     |                                                      |            |            |            |   |   |
| Cash      flows from financing activities:              |                                                                   |                                                                     |                                                      |            |            |
|                                                    | Proceeds      from investor productions or participation revenue loans |                                                                     | 700,000                                                   |            |            | 2,050,000       |
|                                                    | Payments      of investor productions or participation revenue loans   |                                                                     | (87,490)                                                  |            |            |  -         |
|                                                    | Purchase      of common stock                                          |                                                                     | (50,470)                                                  |            |            | (87,653)        |
|                                                    | Payment      of deferred financing costs                               |                                                                     |  -                                                   |            |            | (53,263)        |
|                                                    | Payments      on investor participation notes payable                  |                                                                     | (1,115,000)                                               |            |            |  -         |
|                                                    | Proceeds      from convertible notes payable                           |                                                                     | 300,000                                                   |            |            | 800,000         |
|                                                    | Payments      on convertible interest                                  |                                                                     | (26,164)                                                  |            |            |  -         |
|                                                    | Payment      on convertible notes payable                              |                                                                     | (40,000)                                                  |            |            |  (307,036) |
|                                                    |                                                                   |                                                                     | Net      cash generated by/(used in) financing activities |            |  (319,124) |            |   | 2,402,048 |
|                                                    |                                                                   |                                                                     |                                                      |            |            |            |   |   |
| Decrease      in cash and cash equivalents              |                                                                   |  (619,930)                                                          |                                                      |            | (98,799)        |
|                                                    |                                                                   |                                                                     |                                                      |            |            |            |   |   |
| Cash      and cash equivalents at beginning of year     |                                                                   | 668,773                                                                  |                                                      |            | 767,572         |
|                                                    |                                                                   |                                                                     |                                                      |            |            |            |   |   |
| Cash      and cash equivalents at end of period         | $                                                                      |  48,843                                                             |                                                      | $               | 668,773         |
|                                                    |                                                                   |                                                                     |                                                      |            |            |            |   |   |
| Supplementary      disclosures of cash flow information |                                                                   |                                                                     |                                                      |            |            |
|                                                    | Cash      paid during the year for                                     |                                                                     |                                                      |            |            |            |
|                                                    |                                                                   | Interest                                                                 | $                                                         |  26,164    |            | $               |  38,499 |
|                                                    |                                                                   | Taxes                                                                    | $                                                         |  -         |            | $               |  - |

| ·   | Transferred      $1,405,000 of notes payable under investor participation loans to      convertible debt. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | Issued      2,666,667 shares of common stock for the payment of consulting services      and compensation, valued at $38,200 |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Issued      8,557,379 shares of common stock for the payment of principal and interest      on convertible notes, valued at$834,368 |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Issued      440,000 shares of common stock for the payment of consulting services and      compensation, valued at $175,900 |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

----

----

| •   | FMYR      has a valid sale or licensing agreement in  place. |
|---------------------|--------------------------------------------------------------|

| •   | The      motion picture is complete and in accordance with the agreement with the      customer. |
|---------------------|--------------------------------------------------------------------------------------------------|

| •   | The      motion picture has been delivered or is  deliverable. |
|---------------------|----------------------------------------------------------------|

| •   | The      license period has begun. |
|---------------------|------------------------------------|

| •   | The      revenue is fixed or determinable and collection is reasonably      assured. |
|---------------------|--------------------------------------------------------------------------------------|

| 1.   | Producers Fees      – Producer fees are recognized upon receipt of the fees and delivery of      the related services.  If upon receipt of the fees all services      have not been provided, the fees are deferred and recognized as the      services are performed; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Royalties –      Royalty and profit participation are recognized when the amounts are known      and the receipt of the royalties is reasonably      assured.  Accordingly, recognition generally occurs upon receipt      (usually quarterly or semi-annually);and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Distribution Revenues      – Distribution Revenues are recognized when earned and      appropriately reported by third (3rd) party Distribution companies and      recorded Gross along with any distribution expenses charged by the      Distributor and upon receipt of suchrevenues. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Producer Development,      Production Service Fees and Film Distribution Fees – As these      services are provided, these fees are invoiced by FMYR to the third party      financiers and producers and are recognized when the amount has been      determined and receipt is reasonably  assured.  |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

BusinessSegment

----

----

----

----

----

----

|                                           | June      30,2008 |     | June      30,2007 |
|------------------------------------------------|-------------------|----------|-------------------|
|                                           |              |     |              |   |   |
| Accrued      receivables – producer fees | $                 | 734,894  |              | $ | - |
| Accrued      distribution, royalties and other |              | 50,000   |              |   | - |
| Reserve      for doubtful accounts             |              | (73,000) |              |   | - |
| Total                                          | $                 | 711,894  |              | $ | - |

| Table      4A                                                                                                          |  Released |            | In      Production |   | Development      and Pre-Production |   | Total  |
|------------------------------------------------------------------------------------------------------------------------|----------------|-----------------|--------------------|--------|-------------------------------------|--------|--------|
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Net      film cost balance at June 30, 2007                                                                            | $              | 50,000          |               | $      |  6,384,250                     |   | $      |  170,955 |   | $ | 6,605,205 |
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Production      costs incurred during year ending June 30, 2008                                                        |           | 23,758          |               |   | 425,431                             |   |   |  584,245 |   |   | 1,033,434 |
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Transfers      of film costs between categories for the year ended June 30,      2008                                  |           |  4,997,322 |               |   | (4,953,433                          |   |   | (43,889) |   |   | - |
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Total      film costs incurred and paid by FMYR during year ended June 30,      2008                              |           | 5,021,080       |               |   | (4,528,002)                         |   |   |  540,356 |   |   | 1,033,434 |
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Net      film cost balance before the year ended June 30, 2008 amortization &      write-offs                      |           | 5,071,080       |               |   | 1,856,248                           |   |   | 711,311 |   |   | 7,638,639 |
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Less      film cost amortization & write- offs during the year ended June 30,      2008( See Table 4D below ) |           | (750,322)       |               |   | (1,856,248)                         |   |   | (287,155) |   |   |  (2,893,725) |
|                                                                                                                   |           |            |               |   |                                |   |   |   |   |   |   |
| Net      film cost balance at June 30, 2008                                                                       | $              | 4,320,758       |               | $      | -                                   |   | $      | 424,156 |   | $ | 4,744,914 |

----

| Table      4B                                                                                                    |  Released |        | In      Production |   | Development      and Pre-Production |   | Total  |
|------------------------------------------------------------------------------------------------------------------|----------------|-------------|--------------------|--------|-------------------------------------|--------|--------|
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Net      film cost balance at June 30, 2006                                                                      | $              | 50,000      |               | $      | 5,451,125                           |   | $      |  300,323 |   | $ | 5,801,448 |
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Production      costs incurred during year ending June 30, 2007                                                  |           |  2,313 |               |   | 1,952,464                           |   |   |  1,412,315 |   |   | 3,367,092 |
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Transfers      of film costs between categories for the year ended June 30,      2007                            |           | -           |               |   | 533,724                             |   |   | (533,724) |   |   |  - |
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Total      film costs incurred and paid by FMYR during year ended                                                |           |  2,313 |               |   | 2,486,188                           |   |   |  878,591 |   |   | 3,367,092 |
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Net      film cost balance before the year ended June 30, 2007 amortization &      write offs                |           | 52,313      |               |   | 7,937,313                           |   |   |  1,178,914 |   |   | 9,168,540 |
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Less      film cost amortization & write offs during the year ended June 30,      2007( See Table 4D below ) |           | (2,313)     |               |   |  (1,553,063)                   |   |   | (1,007,959) |   |   |  (2,563,335) |
|                                                                                                             |           |        |               |   |                                |   |   |   |   |   |   |
| Net      film cost balance at June 30, 2007                                                                      | $              | 50,000      |               | $      | 6,384,250                           |   | $      |  170,955 |   | $ | 6,605,205 |

| Table      4C                                        | June      30, 2008 |   | June      30, 2007 |
|------------------------------------------------------|-------------------------|--------|--------------------|
|                                                 |                    |   |               |   |   |   |
| Borderland                                           | 91                      | %      |               |  74 | % |
| Conan      the Barbarian                             | 6                       | %      |               | - | % |
| King      of California                              |  -                 | %      |               | 23 | % |
| Day      of the Dead                                 | 1                       | %      |               | - | % |
| Terror      Train                                    |  1                 | %      |               |  - | % |
| Total      of other individual projects less than 5% |  1                 | %      |               |  2 | % |
|                                                 |                    |   |               |   |   |   |
|                                                 | Total                   | 100    | %                  |   | 100 | % |

----

| Table      4D                                                                                                                                  | Year      Ended                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|                                                                                                                                           |                                              | 06/30/2008 |   | 06/30/2007 |
|                                                                                                                                           | After      Sex                                    | $ | 13,782 |   | $ |  990 |
|                                                                                                                                           | Good      Advice                                  |   |  723 |   |   | 912 |
|                                                                                                                                           | Held      for Ransom                              |   |  12,879 |   |   |  330 |
|                                                                                                                                           | Speedway      Junkie                              |   |  72 |   |   |  7 |
|                                                                                                                                           | Borderland                                        |   | 711,818 |   |   | - |
|                                                                                                                                           | Other                                             |   | 111 |   |   |  - |
|                                                                                                                                           | Rambo                                             |   | 14 |   |   | 896,230 |
|                                                                                                                                           | Righteous      Kill                               |   | 262,170 |   |   | - |
|                                                                                                                                           | Higher      Form of Learning                      |   | 91,555 |   |   | - |
|                                                                                                                                           | King      of California                           |   | 1,521,013 |   |   | - |
|                                                                                                                                           | 16      Blocks                                    |   |  16 |   |   |  626 |
|                                                                                                                                           | Wickerman                                         |   |  - |   |   |  251,256 |
|                                                                                                                                           | The      Contract                                 |   |  - |   |   |  401 |
|                                                                                                                                           | 88      Minutes                                   |   |  15 |   |   |  415 |
|                                                                                                                                           | White      Air                                    |   |  18,909 |   |   | 346,675 |
|                                                                                                                                           | Code                                              |   | 52,721 |   |   | 32,645 |
|                                                                                                                                           | Edison                                            |   | 8 |   |   | - |
|                                                                                                                                           | Brilliant      – write-off/ not being done  |   | 17,865 |   |   | - |
|                                                                                                                                           | Creepshow      – write-off / not being done |   | - |   |   | 3,317 |
|                                                                                                                                           | Home      of the Brave                            |   | 54 |   |   | 47,328 |
|                                                                                                                                           | Saturday      Night Special                       |   | - |   |   | 59,737 |
|                                                                                                                                           | Micronauts      – write-off/not being done  |   | 38,958 |   |   | 16,966 |
|                                                                                                                                           | Rin      Tin Tin                                  |   | - |   |   | 180 |
|                                                                                                                                           | FMYR/EFF      Participation Payment               |   | 136,200 |   |   | 732,949 |
|                                                                                                                                           | The      Tenant                                   |   | - |   |   | 4 |
| Total      of other individuals projects with costs less than $40,000 – either      amortized or write-off/ small projects not being dne |                                              | 14,842 |   |   | 172,367 |
|                                                                                                                                           |                                              |   |   |   |   |   |
| Total      all projects                                                                                                                        | $                                                 | 2,893,725 |   | $ | 2,563,335 |

----

|                              |                             |                                    |                | Year      Ended |
|-----------------------------------|----------------------------------|-----------------------------------------|---------------------|-----------------|
|                              |                             |                                    |                | 06/30/2008      |   | 06/30/2007 |
| Producer      Fees / Film Revenue |                             |                                    |                |            |   |
|                              | Righteous      Kill              | $                                       | 275,000             |            | $ | - |
|                              | Higher      Form of Learning     |                                    | 150,000             |            |   | - |
|                              | The      Code                    |                                    | 100,000             |            |   | - |
|                              | Mogul/Realty      Show           |                                    | 20,000              |            |   | - |
|                              | Microwave      Park              |                                    | 100,000             |            |   | - |
|                              | Anytown      Throwdown           |                                    | 18,000              |            |   | - |
|                              |     Subtotal |                                    | 663,000             |            |   | - |
|                              | King      of California          |                                    | 1,300,000           |            |   | - |
|                              | Rambo                            |                                    | -                   |            |   | 1,500,000 |
|                              |                             | Total      Producer Fees / Film Revenue |                | 1,963,000       |   |   | 1,500,000 |
| Royalties      and Other Revenue  |                             |                                    |                |            |   |
|                              | Royalties                        |                                    | 117,652             |            |   | 11,298 |
|                              | Distribution      revenue        |                                    | 1,149,915           |            |   | 100,000 |
|                              |                             | Total      Royalties and Other Revenue  |                | 1,267,567       |   |   | 111,298 |
|                              |                             |                                    |                |            |   |   |   |   |
|                              |                             |                                    | Total      Revenues | $               |  3,230,567 |   | $ | 1,611,298 |

|                          |   | June      30, |
|-------------------------------|--------|---------------|
| Major      Customers          |   | 2008          |   | 2007 |
| NuImage/Millennium Films |   | 59.59%        |   | 98.97% |
| Lions      Gate Films         |   | 27.86%        |   | 0.00% |
| After      Dark               |   | 6.19%         |   | 0.00% |
| Others,      less than 5%     |   | 6.36%         |   | 1.03% |
|                          |   |          |   |   |
| Total      Revenue            |   | 100.00%       |   | 100.00% |

----

|                                                |         |   |      | June      30, |    | June      30,   |
|-----------------------------------------------------|--------------|--------|-----------|---------------|---------|-----------------|
|                                                |         | Life   |      | 2008          |    | 2007            |
|                                                |         |   |      |          |    |            |   |   |
| Office      furniture and equipment                 | 7      years |   | $         | 52,558        |    | $               | 52,758 |
| Computer      equipment                             | 5      years |   |      | 93,083        |    |            | 86,873 |
| Software                                            | 3      years |   |      | 88,956        |    |            | 87,641 |
| Leasehold      Improvements                         | 1      year  |   |      | 20,445        |    |            | 1,900 |
|                                                |         |   |      |          |    |            |   |   |
|                                                | Total        |   |      |          | 255,042 |            |   | 229,172 |
|                                                |         |   |      |          |    |            |   |   |
| Less      accumulated depreciation and amortization |         |   | (215,514) |          |    | (171,004      ) |
|                                                |         |   |      |          |    |            |   |   |
|                                                |         |   |      | $             | 37,528  |            | $ | 58,168 |

----

----

|                                  |                               |                                   |                         | Investor      Loans |      | Participation      Loans |               |            |      |
|---------------------------------------|------------------------------------|----------------------------------------|------------------------------|---------------------|-----------|--------------------------|--------------------|-----------------|-----------|
|                                  |                               |                                   |                         | Tau                 |      | Scorched                 |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                               |                                   |                         | Entertainment       |      | Earth                    |               | Freedom         |      | EFF |   | Gary |   | Dr.      Raja H. |   | Justin |   |   |   |
| Specified      Use                    | (Elisa      Salinas)               |                                   | Entertainment                |                | Films     |                     | Partners,      LLC |            | Granstaff |   | Ataya |   | Holecek |   | Totals |
|                                  |                               |                                   |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      Tenant                       | $                                  |  -                                |                         | $                   |  -   |                     | $                  | -               |      | $ | 68,486 |   | $ | - |   | $ | - |   | $ | - |   | $ | 68,486 |
| Borderland                            |                               | 1,799,719                              |                         |                | 572,500   |                     |               |  2,355,192 |      |   | - |   |   | - |   |   | - |   |   | - |   |   | 4,727,411 |
| White      Air                        |                               |  -                                |                         |                |  -   |                     |               | -               |      |   |  346,514 |   |   | - |   |   | - |   |   | - |   |   | 346,514 |
| Wickerman                             |                               | 250,000                                |                         |                |  -   |                     |               | -               |      |   | - |   |   | - |   |   | - |   |   | - |   |   | 250,000 |
| King      of California               |                               | 1,300,000                              |                         |                |  -   |                     |               | -               |      |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,300,000 |
| Room      Service                     |                               | 130,000                                |                         |                |  -   |                     |               | -               |      |   | - |   |   | - |   |   | - |   |   | - |   |   | 130,000 |
| Day      of the Dead                  |                               |  -                                |                         |                |  -   |                     |               | -               |      |   | 300,000 |   |   | - |   |   | - |   |   | - |   |   | 300,000 |
| Rin      Tin Tin                      |                               |  -                                |                         |                |  -   |                     |               | -               |      |   | 85,000 |   |   | - |   |   | - |   |   | - |   |   | 85,000 |
| Participation      Fee                |                               |  -                                |                         |                |  -   |                     |               | -               |      |   | - |   |   |  750,000 |   |   | - |   |   | - |   |   | 750,000 |
|                                  |                               |                                   | Balance      - June 30, 2007 |                | 3,479,719 |                     |               | 572,500         |      |   |  2,355,192 |   |   |  800,000 |   |   |  750,000 |   |   | - |   |   | - |   |   | 7,957,411 |
|                                  |                               |                                   |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Participation      Fee                |                               |  -                                |                         |                |  -   |                     |               | -               |      |   | - |   |   | - |   |   |  200,000 |   |   |  500,000 |   |   | 700,000 |
| Special      Adjustments or payments: |                               |                                   |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Agreed      to Transfer Investor   |                                   |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                               | to      Convertible Debt               |                         |  (315,000)     |      |                     |  -            |            |      | - |   |   | (790,000) |   |   | - |   |   | - |   |   | - |   |   |  (1,105,000) |
|                                  | Adjust      for projects not being |                                   |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                               | made      (Room Service) and      |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                               | /or      Project term (Wickerman) |                         |                |      |                     |               |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                               | indicate      loss and no longer due   |                         |  (380,000)     |      |                     |  -            |            |      | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   |  (380,000) |
| Cash      accrued payment at6/30/08   |                               | (1,085,000)                            |                         |                | (20,000)  |                     |               | -               |      |   | (10,000) |   |   | (74,144) |   |   |  (5,221) |   |   |  (8,125) |   |   |  (1,202,490) |
|                                  |                               |                                   | Balance      - June 30, 2008 | $                   | 1,699,719 |                     | $                  | 552,500         |      | $ |  2,355,192 |   | $ | - |   | $ |  675,856 |   | $ |  194,779 |   | $ |  491,875 |   | $ | 5,969,921 |

----

|         |   |         |      |           |               |         |         |               | Debt      Feature |         | Initial      Debt |
|--------------|--------|--------------|-----------|----------------|--------------------|--------------|--------------|--------------------|-------------------|--------------|-------------------|
| Date      of |   | Amount       |      | Conversion     |               | Term         |         | Fair      Value at |              | Carrying     |
| Note         |   | of      Note |      | Price      (1) |               | of      Note |         | Issuance           |              | Value        |
|         |   |         |      |           |               |         |         |               |              |         |              |   |   |
| 9-Nov-04     |   | $            | 2,000,000 |           | $30.00      or 80% |         | 2      years |               | $                 | 674,158      |              | $ | 1,032,899 |
| 24-May-06    |   | $            | 400,000   |           | 80%                |         | 1      year  |               | $                 | 135,770      |              | $ | 264,250 |
| 5-Jun-07     |   | $            | 1,000,000 |           | $0.10      (2)     |         | 2      years |               | $                 | 1,000,000    |              | $ | - |
| 30-Sep-07    |   | $            | 300,000   |           | 80%                |         | 2      years |               | $                 |  24,722 |              | $ | 275,278 |
| 1-Jan-08     |   | $            | 500,000   |           | 80%                |         | 2      years |               | $                 |  41,204 |              | $ | 458,796 |
| 21-Jun-08    |   | $            | 290,000   |           | 80%                |         | 2      years |               | $                 |  23,896 |              | $ | 266,104 |
| 30-Jun-08    |   | $            | 315,000   |           | 80%                |         | 2      years |               | $                 |  25,961 |              | $ | 289,039 |

| (1)   | =      the conversion price is the lower of the set price or 80% of market      closing price. |
|-----------------|------------------------------------------------------------------------------------------------|

| (2)   | =      fixed conversion price. |
|-----------------|--------------------------------|

| Date      of Warrants |   | Number      of |   | Market      Price  |   | Exercise |   | Term      of |   | Fair      Value  |   | Fair      Value |    | Fair      Value |
|-----------------------|--------|----------------|--------|--------------------|--------|----------|--------|--------------|--------|------------------|--------|-----------------|---------|-----------------|
| Issued                |   | Warrants       |   | at      issue date |   | Price    |   | Warrants     |   | at      Issuance |   | 6/30/2007       |    | 6/30/2008       |
| November      4, 2004 |   | 33,333         |   | $                  | 16.40  |     | $      | 24.00        |   | 5      years     |   | $               | 104,894 |            | $ |  96 |   | $ | 1 |
| November      4, 2004 |   | 83,333         |   | $                  | 16.40  |     | $      | 30.00        |   | 5      years     |   | $               | 262,460 |            | $ | 239 |   | $ | 1 |
| June      5, 2007     |   | 5,000,000      |   | $                  | 0.14   |     | $      |  0.10   |   | 5      years     |   | $               | 565,376 |            | $ | 468,336 |   | $ | 29,032 |
| June      5, 2007     |   | 5,000,000      |   | $                  | 0.14   |     | $      |  0.20   |   | 5      years     |   | $               | 551,018 |            | $ | 455,515 |   | $ | 23,494 |

----

| Notes      payable –                |   | June      30, |      | June      30, |
|-------------------------------------------|--------|---------------|-----------|---------------|
| Convertible      debt                     |   | 2008          |      | 2007          |
|                                      |   |          |      |          |   |   |
| Gross      Notes payable Convertible debt |   | $             | 2,992,401 |          | $ | 1,627,401 |
| Less      unamortized debt issue costs    |   |          | 792,700   |          |   | 1,118,982 |
| Notes      payable Convertible debt       |   | $             | 2,199,701 |          | $ | 508,419 |

| Unamortized DebtDiscount |
|--------------------------|
| Yearly      Activity     |   | Date |   | Activity      Explanation |
| $                        | 1,157,451 |   | 6/30/2006 |   | Year-end      Balance |
| $                        |  (1,038,469) |   | 6/30/2007 |   | Debt      amortization |
| $                        | 1,000,000 |   | 6/30/2007 |   | Adjustment      for new debt |
| $                        | 1,118,982 |   | 6/30/2007 |   | Year-end      Balance |
| $                        |  (326,282) |   | 6/30/2008 |   | Debt      amortization |
| $                        | 792,700 |   | 6/30/2008 |   | Year-end      Balance |

----

----

----

| $      | 871,658  | income,      decrease in value of 2004, 2006, 2007 and 2008 warrant      liability     |
|--------|----------|----------------------------------------------------------------------------------------|
|   | (41,252) | expense,      increase in value of 2004, 2006, 2007 and 2008 derivative      liability |
| $      | 830,406  | other      income related to convertible debt                                          |

| $      | 216,737 | income,      decrease in value of 2004, 2006 and 2007 warrant  liability             |
|--------|---------|--------------------------------------------------------------------------------------|
|   | 553,649 | income,      increase in value of  2004 and 2006 derivative      liability |
| $      | 770,386 | other      income related to convertible debt                                        |

| $      | 413,442 | of      interest expense related to accretion of 2007 convertible    debt |
|--------|---------|---------------------------------------------------------------------------|
|   | 28,623  | of      interest expense related to accretion of 2008 convertible    debt |
| $      | 442,065 | of      interest expense related to convertibledebt                       |

----

| $      | 817,057   | of      interest expense related to accretion of 2005 convertible    debt |
|--------|-----------|---------------------------------------------------------------------------|
|   | 111,745   | of      interest expense related to accretion of 2006 convertible    debt |
|   | 109,667   | of      interest expense related to accretion of 2007 convertible    debt |
| $      | 1,038,469 | of      interest expense related to convertibledebt                       |

| $      | 439,753     | June      30, 2006 value                  |
|--------|-------------|-------------------------------------------|
|   | 1,000,000   | Increase      in 2007 convertible debt    |
|   | (1,000,000) | Increase      in discount                 |
|   | (672,767)   | Conversion      of debt to common shares  |
|   | (297,036)   | Repayment      of debt                    |
|   | 1,038,469   | Accretion      of convertible debt        |
| $      | 508,419     | June      30, 2007 carrying value of debt |

| $      | 508,419   | June      30, 2007 value                  |
|--------|-----------|-------------------------------------------|
|   | 1,405,000 | Increase      in 2008 convertible debt    |
|   | (115,783) | Increase      in debt discount            |
|   | (40,000)  | Repayment      of debt                    |
|   | 442,065   | Accretion      of convertible debt        |
| $      | 2,199,701 | June      30, 2008 carrying value of debt |

| $      | 930,227   | June      30, 2006 value of derivative liability     |
|--------|-----------|------------------------------------------------------|
|   | 68,581    | original      values of 2007 derivative liability    |
|   | (415,663) | decrease      in values of 2004 derivative liability |
|   | (139,819) | decrease      in values of 2006 derivative liability |
|   | 1,833     | increase      in values of 2007 derivative liability |
| $      | 445,159   | June      30, 2007 value of derivativeliability      |

| $      | 445,159 | June      30, 2007 value of derivative liability     |
|--------|---------|------------------------------------------------------|
|   | 24,722  | original      values of 2007 derivative liability    |
|   | 91,061  | original      values of 2008 derivative liability    |
|   | 34,059  | increase      in values of 2007 derivative liability |
|   | 7,193   | increase      in values of 2008 derivative liability |
| $      | 602,194 | June      30, 2008 value of derivativeliability      |

----

| $      | 24,529    | June      30, 2006 value of warrant liability           |
|--------|-----------|---------------------------------------------------------|
|   | 1,116,367 | Original      carrying values of 2007 warrant liability |
|   | (24,529)  | decrease      in value of 2004 warrant liability        |
|   | (192,208) | decrease      in values of 2007 warrant liability       |
| $      | 924,159   | June      30, 2007 value of warrant liability           |

| $      | 924,159   | June      30, 2007 value of warrant liability     |
|--------|-----------|---------------------------------------------------|
|   | (333)     | decrease      in value of 2004 warrant liability  |
|   | (600,630) | decrease      in value of 2007 warrant liability  |
|   | (270,668) | decrease      in values of 2008 warrant liability |
| $      | 52,528    | June      30, 2008 value of warrant liability     |

|                          | June      30,2008 |    | June      30,2007 |
|-------------------------------|-------------------|---------|-------------------|
|                          |              |    |              |   |   |
| Accounts      payable         | $                 | 63,734  |              | $ | 186,781 |
| Accrued      interest payable |              | 195,709 |              |   | 51,981 |
|                          |              |    |              |   |   |
|                          | $                 | 259,443 |              | $ | 238,762 |

----

|                      | 2008     |   | 2007   |
|---------------------------|----------|--------|--------|
| Income      tax provision |     |   |   |   |   |
|                      | Current  | $      | -      |   | $ | - |
|                      | Deferred |   | -      |   |   | - |
|                      | Total    | $      | -      |   | $ | - |

|                                                       | 2008   |        | 2007   |
|------------------------------------------------------------|--------|-------------|--------|
| Deferred      tax assets:                                  |   |        |   |   |   |
| Net      operating losses                                  | $      | 4,943,203   |   | $ | 4,534,245 |
| Accounts      receivable - allowance for doubtful accounts |   | -           |   |   | - |
| Valuation      allowance                                   |   | (4,940,203) |   |   | (4,531,245) |
| Total      deferred tax assets                             |   | 3,000       |   |   | 3,000 |
|                                                       |   |        |   |   |   |
| Deferred      tax liabilities:                             |   |        |   |   |   |
| Basis      of property and equipment                       |   | (3,000)     |   |   | (3,000      ) |
| Net      deferred tax asset                                | $      | -           |   | $ | - |

----

|                                                                                               | 2008   |      | 2007    |
|----------------------------------------------------------------------------------------------------|--------|-----------|---------|
|                                                                                               | Amount |      | Percent |   | Amount |   | Percent |
|                                                                                               |   |      |    |   |   |   |   |   |   |   |   |
| Benefit      for income tax at federal                                                             |   |      |    |   |   |   |   |   |   |   |   |
| statutory      rate                                                                                | $      | 286,259   |    |   | 34% |   | $ | 1,102,035 |   |   | 34% |
| State      taxes benefit, net of federal cost                                                      |   | 46,307    |    |   | 6% |   |   | 179,805 |   |   | 6% |
| Non-deductible      expenses related to convertible debt and derivative financial      instruments |   | 85,510    |    |   | 10% |   |   |  (332,294) |   |   | (10)% |
| Other,      including non-deductible                                                               |   |      |    |   |   |   |   |   |   |   |   |
| business      meals and entertainment                                                              |   | (12,118)  |    |   | (2)% |   |   |  (16,207) |   |   | (1)% |
| Change      in valuation allowance                                                                 |   | (405,958) |    |   | (48)% |   |   |  (933,339) |   |   | (29)% |
|                                                                                               |   |      |    |   |   |   |   |   |   |   |   |
|                                                                                               | $      | -         |    |   | 0% |   | $ | - |   |   | 0% |

----

----

|           |   |               |   |    |  Remaining |     |   |   |
|----------------|--------|--------------------|--------|---------|-----------------|----------|--------|--------|
|           |   |               |   |    | Contractual     |     |   |   |
| Number      of |   | Expiration         |   | Life    |            | Exercise |
| Shares         |   | Date               |   | (Years) |            | Price    |
| 116,667        |   | November      2009 |   | 1.5     |            | $24.00   |
| 5,000,000      |   | June      2011     |   | 3.0     |            |     | $0.10  |
| 5,000,000      |   | June      2011     |   | 3.0     |            |     | $0.20  |
|           |   |               |   |    |            |     |   |   |   |
| 10,116,667     |   |               |   |    |            |     |   |   |   |

----

|                                                                  | 2008   |   | 2007   |
|-----------------------------------------------------------------------|--------|--------|--------|
| Number      of customers accounting for more than 10% of revenue      | 2      |   |   | 1 |   |
|                                                                  |   |   |   |   |   |
| Percentage      of total revenue derived from largest customer        | 59     | %      |   | 98 | % |
|                                                                  |   |   |   |   |   |
| Percentage      of total revenue derived from second largest customer | 28     | %      |   |   1 | % |

----

| Date                               |     | Shares  |       | Market      Price |       | Cost   |     | Commissions |   | Total  |
|------------------------------------|----------|---------|------------|-------------------|------------|--------|----------|-------------|--------|--------|
| 8/3/2006                           |     | 3,250   |       | $                 |  2.40 |   | $        | 7,800       |   | $      | 400 |   | $ | 8,200 |
| 8/4/2006                           |     | 1,625   |       | $                 |  1.92 |   |     | 3,120       |   |   | 163 |   |   | 3,283 |
| 8/15/2006                          |     | 1,374   |       | $                 |  1.86 |   |     | 2,556       |   |   | 135 |   |   | 2,691 |
| 8/16/2006                          |     | 2,475   |       | $                 |  1.96 |   |     | 4,851       |   |   | 247 |   |   | 5,098 |
| 8/17/2006                          |     | 500     |       | $                 |  2.40 |   |     | 1,200       |   |   | 25 |   |   | 1,225 |
| 8/17/2006                          |     | 4,450   |       | $                 |  2.36 |   |     | 10,502      |   |   | 528 |   |   | 11,030 |
| 8/18/2006                          |     | 4,800   |       | $                 |  2.34 |   |     | 11,232      |   |   | 557 |   |   | 11,789 |
| 8/21/2006                          |     | 500     |       | $                 |  2.40 |   |     | 1,200       |   |   | - |   |   | 1,200 |
| 8/21/2006                          |     | 1,250   |       | $                 |  2.40 |   |     | 3,000       |   |   | - |   |   | 3,000 |
| 8/21/2006                          |     | 1,250   |       | $                 |  2.40 |   |     | 3,000       |   |   | 8 |   |   | 3,008 |
| 8/21/2006                          |     | 500     |       | $                 |  2.72 |   |     | 1,360       |   |   | - |   |   | 1,360 |
| 8/23/2006                          |     | 250     |       | $                 |  2.30 |   |     | 575         |   |   | 7 |   |   | 582 |
| 8/23/2006                          |     | 500     |       | $                 |  2.50 |   |     | 1,250       |   |   | 58 |   |   | 1,308 |
| 8/30/2006                          |     | 250     |       | $                 |  2.30 |   |     | 575         |   |   | 27 |   |   | 602 |
| 8/31/2006                          |     | 250     |       | $                 |  1.80 |   |     | 450         |   |   | 33 |   |   | 483 |
| 9/5/2006                           |     | 1,000   |       | $                 |  1.80 |   |     | 1,800       |   |   | 97 |   |   | 1,897 |
| 9/7/2006                           |     | 1,000   |       | $                 |  1.60 |   |     | 1,600       |   |   | 88 |   |   | 1,688 |
| 9/14/2006                          |     | 100     |       | $                 |  1.90 |   |     | 190         |   |   | 27 |   |   | 217 |
| 9/14/2006                          |     | 500     |       | $                 |  1.90 |   |     | 950         |   |   | 32 |   |   | 982 |
| 9/18/2006                          |     | 1,000   |       | $                 |  1.60 |   |     | 1,600       |   |   | 73 |   |   | 1,673 |
| 9/18/2006                          |     | 100     |       | $                 |  1.60 |   |     | 160         |   |   | 25 |   |   | 185 |
| 9/19/2006                          |     | 250     |       | $                 |  1.60 |   |     | 400         |   |   | 27 |   |   | 427 |
| 9/26/2006                          |     | 1,250   |       | $                 |  1.70 |   |     | 2,125       |   |   | 72 |   |   | 2,197 |
| 9/27/2006                          |     | 500     |       | $                 |  1.80 |   |     | 900         |   |   | 34 |   |   | 934 |
| 9/27/2006                          |     | 700     |       | $                 |  1.88 |   |     | 1,316       |   |   | 8 |   |   | 1,324 |
| 9/27/2006                          |     | 50      |       | $                 |  1.80 |   |     | 90          |   |   | - |   |   | 90 |
| 9/28/2006                          |     | 1,250   |       | $                 |  1.88 |   |     | 2,350       |   |   | 7 |   |   | 2,357 |
| 9/29/2006                          |     | 1,250   |       | $                 |  1.88 |   |     | 2,350       |   |   | 8 |   |   | 2,358 |
| 10/5/2006                          |     | 1,000   |       | $                 |  1.60 |   |     | 1,600       |   |   | 106 |   |   | 1,706 |
| 6/29/2007                          |     | 144,855 |       | $                 |  0.10 |   |     | 14,383      |   |   | 376 |   |   | 14,759 |
| 9/30/2007                          |     | 472,055 |       | $                 |  0.11 |   |     | 49,630      |   |   | 840 |   |   | 50,470 |
| Total      Shares Purchased        | 650,084  |    | $          |              |       | $      | 134,115  |        | $      | 4,008  |   | $ | 138,123 |
| Less:      Shares return to        |     |    |       |              |       |   |     |        |   |   |   |   |
| to      available                  | -522,684 |    |       |              |       |   | -121,365 |        |   | -3,622 |   |   | -124,987 |
| Total      Net Shares Purchased    | 127,400  |    |       |              |       | $      | 12,750   |        | $      | 386    |   | $ | 13,136 |
| Average      Stock Price Per Share |     | $       |  0.52 |              |       |   |     |        |   |   |   |   |

----

| Tau      Entertainment (Elisa Salinas) | $      | 204,067 |
|----------------------------------------|--------|---------|
| Scorched      Earth Entertainment      |   | 74,851  |
| Freedom      Films                     |   | 308,874 |
|                                   | $      | 587,792 |

----