UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 
  FORM 10-Q 
  x

   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
  For the quarterly period ended July 31, 2012   ̈

   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
  For the transition period from ____________, to ____________  Commission File Number000-30800 
  THE MOVIE STUDIO, INC. (Exact Name of Registrant as Specified in Charter) 
  Delaware

   

   65-0494581(State or Other Jurisdiction of

   Incorporation or Organization)

   

   (I.R.S. Employer

   Identification Number)
  530 North Federal Highway, Ft. Lauderdale, Florida 33301 (Address of Principal Executive Offices)  (954) 332-6600 (Registrant’s Telephone Number) 
  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  X  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  X  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer, large accelerated filer and smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):  Large accelerated filer

    ̈

   Accelerated filer

    ̈Non-accelerated filer

    ̈

   Smaller reporting company

   x
 1


---



Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    YesoNox  There were 131,182,473 shares of the Registrant’s $0.0001 par
value common stock outstanding as of June 12, 2013.                                        2


---



The Movie Studio, Inc.  Contents  Part I – Financial InformationItem 1.

   Consolidated Financial Statements

   4 - 16Item 2.

   Management’s Discussion and Analysis of Financial Condition and Results of Operation

   18Item 3.

   Quantitative and Qualitative Disclosures About Market Risk

   19Item 4.

   Controls and Procedures

   19Part II – Other InformationItem 1.

   Legal Proceedings

   20Item 2.

   Unregistered Sales of Equity Securities and Use of Proceeds

   20Item 3.

   Defaults Upon Senior Securities

   20Item 4.

   Mine Safety Disclosures

   20Item 5.

   Other Information

   20Item 6.

   Exhibits

   20Signatures

   22
  
                   3


---









PART I — FINANCIAL INFORMATION



Statements in this Form 10-Q Quarterly Report may be “forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management. These assumptions are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those risks discussed in this Form 10-Q Quarterly Report, under “Management’s Discussion and Analysis of Financial Condition or Plan of Operation” and in other documents which we file with the Securities and Exchange Commission.



In addition, such statements could be affected by risks and uncertainties related to our financial condition, factors that affect our industry, market and customer acceptance, changes in technology, fluctuations in our quarterly results, our ability to continue and manage our growth, liquidity and other capital resource issues, competition, fulfillment of contractual obligations by other parties and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 10-Q Quarterly Report, except as required by law.



Item 1.     Financial Statements



THE MOVIE STUDIO, INC.



Table of Contents

PAGE



Consolidated Balance Sheets                                                            5





Consolidated Statements of Operations                                             6





Consolidated Statements of Cash Flows                                            7





Notes to Financial Statements                                                           8 - 18


















4
















---



THE MOVIE STUDIO, INC.(FORMERLY DESTINATION TELEVISION, INC.)Consolidated Balance SheetsJuly 31,

   

   October 31,2012

   

   2011AssetsCurrent assetsCash

   

   

   

   $ 19

   

   $ 19Total current assets

   

   19

   

   19Property and equipment, net

   

   4,658

   

   6,574Acquired amortizable intangible assets

   

   655

   

   880Total assets

   

   $ 5,332

   

   $ 7,473Liabilities and stockholders' deficiencyCurrent liabilitiesPayroll taxes payable

   

   $ 363,735

   

   $ 336,386Loans payable - related party

   

   2,047,875

   

   1,947,325Total current liabilities

   

   2,411,610

   

   2,283,711Long-term debt, net of current portion

   -

   

   -Total liabilities

   

   2,411,610

   

   2,283,711Stockholders' deficiencyPreferred stock, Series B convertible, $.0001 par value;5,750,000 authorized, issued and outstaning at July 31, 2012and October 31, 2011, respectively

   

   206,000

   

   206,000Common stock, $.0001 par value; 200,000,000 sharesauthorized, 102,355,260 and 102,355,260 shares issued and outstandingat July 31, 2012 and October 31, 2011, respectively

   10,236

   

   10,236Additional paid In capital

   

   6,616,641

   

   6,616,641Accumulated deficit

   

   

   (9,239,155)

   

   (9,109,115)Total stockholders' deficiency

   (2,406,278)

   

   (2,276,238)Total liabilities and stockholders' deficiency

   $ 5,332

   

   $ 7,473The accompanying footnotes are an integral part of these financial statements.
     5


---



THE MOVIE STUDIO, INC.(FORMERLY DESTINATION TELEVISION, INC.)Consolidated Statements of OperationsThree months ended July 31,

   

   Nine months ended July 31,2012

   

   2011

   

   2012

   

   2011Sales

   

   

   

   $ -

   

   $ -

   

   $ -

   

   $ -Expenses:Selling, general and administrative expenses

   

   33,964

   

   33,964

   

   101,891

   

   115,391Consulting

   

   -

   

   -

   

   -

   

   -Interest expense

   

   9,116

   

   9,116

   

   27,348

   

   33,900Total expenses

   

   43,080

   

   43,080

   

   129,239

   

   149,291Net loss before income taxes

   

   (43,080)

   

   (43,080)

   

   (129,239)

   

   (149,291)Income taxes

   

   -

   

   -

   

   -

   

   -Net income (loss)

   

   $ (43,080)

   

   $ (43,080)

   

   $ (129,239)

   

   $ (149,291)Basic and diluted loss per share:Basic and diluted loss per share:

   

   $ -

   

   $ -

   

   $ -

   

   $ -Weighted average number of commonshares outstanding, basic and fully diluted

   

   102,355,260

   

   102,355,260

   

   102,355,260

   

   102,355,260The accompanying footnotes are an integral part of these financial statements.


---



6


---



THE MOVIE STUDIO, INC.(FORMERLY DESTINATION TELEVISION, INC.)Consolidated Statements of Cash FlowsNine months endedJulyl 31,2012

   

   2011Cash flows from operating activities:Net loss

   $ (129,239)

   

   $ (149,291)Adjustment to reconcile net loss to netnet cash used by operating activities:Depreciation

   2,141

   

   2,141Changes in operating assets and liabilities:Increase in payables and accrued expenses

   -

   

   13,500Increase in accrued interest - related party

   -

   

   6,552Increase in payroll taxes payable

   27,348

   

   27,348Net cash used in operating activities

   (99,750)

   

   (99,750)Cash flows from investing activities-

   

   -Cash flows from financing activitiesProceeds from issuance of common stock

   -

   

   -Proceeds from related party loan to the company

   99,750

   

   99,750Net cash provided by investing activities

   99,750

   

   99,750Net incresase(decrease) in cash

   -

   

   -Cash, beginning of period

   19

   

   19Cash, end of period

   $ 19

   

   $ 19The accompanying footnotes are an integral part of these financial statements.
   7


---



THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012   Note
1 – Description of Business  Destination
Television, Inc. (the "Company") is a Delaware corporation formed in
1961 under the name Magic Fingers, Inc. By amendment of its certificate of
incorporation, the Company's name was changed in 1999 to Magicinc.com and in
April 2002 to Magic Media Networks, Inc. and in February 2007 to its current
title. Through the period ended January 31, 2010, the Company devoted
substantially all its efforts to reorganizing its financial affairs and
settling its debt obligations. During the fiscal years ended October 31, 2000
and October 31, 2001, the Company was engaged primarily in the planning and
development of an interactive network to provide entertainment via the Internet.
Subsequent to October 31, 2001, the Company redirected its business focus to
the development of a private television network, in high traffic locations such
as bars and nightclubs. During the development process, the Company received
incidental revenue from the sale of advertising and the production of
commercials.  Note
2 – Summary of significant Accounting Policies  Basis
of Presentation  The accompanying unaudited
consolidated quarterly financial statements have been prepared on a basis
consistent with generally accepted accounting principles in the United States
(“GAAP”) for interim financial information and pursuant to the rules of the Securities
and Exchange Commission (“SEC”). In the opinion of management, the accompanying
unaudited financial statements reflect all adjustments, consisting of only
normal and recurring adjustments, necessary for a fair presentation of the
results of operations, financial position and cash flows for the periods
presented.  The results of operations for the periods are not necessarily
indicative of the results expected for the full year or any future period. 
These statements should be read in conjunction with the Entity’s Annual Report
on Form 10-K for the year ended October 31, 2010 as filed with the SEC on July
8, 2013 (the “2011 Annual Report”)  The consolidated financial statements
include the accounts of The Movie Studio, Inc. (Formerly Destination Television,
Inc.), a Delaware corporation, and its wholly owned subsidiary Destination
Television, Inc., a Florida corporation. All significant inter-company account
balances and transactions between the Company and its subsidiary have been
eliminated in consolidation.  Long-Lived Assets  In
accordance with Financial Accounting Standard Board (“FASB”) Accounting
Standards Codification (“ASC”) Topic 360Property, Plant, and Equipment,the Company records impairment losses on long-lived assets used in operations when
indicators of impairment are present and the undiscounted cash flows estimated
to be generated by those assets are less than the assets’ carrying amounts.
There were no impairment charges during the nine months ended July 31, 2012 and
the year ended October 31, 2011. Fair
Value of Financial Instruments The fair values of the Company’s assets and liabilities that
qualify as financial instruments under FASB ASC Topic 825,Financial
Instruments,approximate their carrying amounts presented in the
accompanying consolidated statements of financial condition atJuly 31, 2012
and October 31, 2011. Revenue recognition In accordance with the FASB
ASC Topic 605,Revenue Recognition,the Company recognizes
revenue when persuasive evidence of an arrangement exists, delivery has
occurred, the sales price is fixed or determinable, and collectability is
reasonably assured. 8


---



THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012   Note
2 – Summary of significant Accounting Policies (continued)  Income Taxes  The Company accounts for
income taxes in accordance with FASB ASC Topic 740,Income Taxes,which
requires accounting for deferred income taxes under the asset and liability
method.Deferred income tax asset and
liabilities are computed for differences between the financial statement and
tax bases of assets and liabilities that will result in taxable or deductible
amounts in the future based on the enacted tax laws and rates applicable to the
periods in which the differences are expected to affect taxable income. 
Valuation allowances are established, when necessary, to reduce the deferred
income tax assets to the amount expected to be realized.  In accordance with GAAP, the
Company is required to determine whether a tax position of the Company is more
likely than not to be sustained upon examination by the applicable taxing
authority, including resolution of any related appeals or litigation processes,
based on the technical merits of the position. The Company files an income tax
return in the U.S. federal jurisdiction, and may file income tax returns in
various U.S. state and local jurisdictions.  Generally the Company is no
longer subject to income tax examinations by major taxing authorities for years
before 2005. The tax benefit to be recognized is measured as the largest amount
of benefit that is greater than fifty percent likely of being realized upon
ultimate settlement.  De-recognition of a tax benefit previously recognized
could result in the Company recording a tax liability that would reduce net
assets. This policy also provides guidance on thresholds, measurement,
de-recognition, classification, interest and penalties, accounting in interim
periods, disclosure, and transition that is intended to provide better
financial statement comparability among different entities.  It must be applied
to all existing tax positions upon initial adoption and the cumulative effect,
if any, is to be reported as an adjustment to stockholder’s equity as of
January 1, 2009.  Based on its analysis, the Company has determined that the
adoption of this policy did not have a material impact on the Company’s
financial statements upon adoption. However, management’s conclusions regarding
this policy may be subject to review and adjustment at a later date based on
factors including, but not limited to, on-going analyses of and changes to tax
laws, regulations and interpretations thereof.  Comprehensive Income  The Company complies with
FASB ASC Topic 220,Comprehensive Income,which establishes rules for
the reporting and display of comprehensive income (loss) and its components. 
FASB ASC Topic 220 requires the Company’s change in foreign currency
translation adjustments to be included in other comprehensive loss, and is
reflected as a separate component of stockholders’ equity.              9


---



THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012  Note
2 – Summary of significant Accounting Policies (continued)  Stock-Based Compensation  The Company complies with
FASB ASC Topic 718Compensation – Stock Compensation,which establishes
standards for the accounting for transactions in which an entity exchanges its
equity instruments for goods or services.  It also addresses transactions in
which an entity incurs liabilities in exchange for goods or services that are based
on the fair value of the entity’s equity instruments or that may be settled by
the issuance of those equity instruments. FASB ASC Topic 718 focuses primarily
on accounting for transactions in which an entity obtains employee services in
share-based payment transactions.  FASB ASC Topic 718 requires an entity to
measure the cost of employee services received in exchange for an award of
equity instruments based on the grant-date fair value of the award (with
limited exceptions).  That cost will be recognized over the period during which
an employee is required to provide service in exchange for the award (usually
the vesting period).  No compensation costs are recognized for equity
instruments for which employees do not render the requisite service.  The grant-date
fair value of employee share options and similar instruments will be
estimated using option-pricing models adjusted for the unique characteristics
of those instruments (unless observable market prices for the same or similar
instruments are available).  If an equity award is modified after the grant
date, incremental compensation cost will be recognized in an amount equal to
the excess of the fair value of the modified award over the fair value of the
original award immediately before the modification.  No employee stock options
or stock awards vested during 2011 or 2010 under FASB ASC 718.  Nonemployee
awards  The fair value of equity
instruments issued to a nonemployee is measured by using the stock price and
other measurement assumptions as of the date of either: (i) a commitment for
performance by the nonemployee has been reached; or (ii) the counterparty’s
performance is complete.  Expenses related to nonemployee awards are generally
recognized in the same period as the Company incurs the related liability for
goods and services received.  The Company recorded stock compensation of
approximately    $-0- and $170,430 during the nine months ended July 31, 2011
and 2010, respectively, related to consulting services.  Recently Adopted
Accounting Pronouncements  The Company has adopted the Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) 105-10,Generally
Accepted Accounting Principles – Overall(“ASC 105-10”), which was formerly
known as SFAS 168. ASC 105-10 establishes the FASB Accounting Standards
Codification (the “Codification”) as the source of authoritative accounting
principles recognized by the FASB to be applied by nongovernmental entities in
the preparation of financial statements in conformity with U.S. GAAP. Rules and
interpretive releases of the Securities and Exchange Commission (the
"SEC") under authority of federal securities laws are also sources of
authoritative U.S. GAAP for SEC registrants.  All guidance contained
in the Codification carries an equal level of authority.  The
Codification superseded all existing non-SEC accounting and reporting standards
and all other non-grandfathered, non-SEC accounting literature not included in
the Positions or Emerging Issues Task Force Abstracts.  Instead, it
will issue Accounting Standards Updates (“ASUs”). The FASB will not consider
ASUs as authoritative in their own right.  ASUs will serve only to
update the Codification, provide background information about the guidance and
provide the basis of conclusions on the change(s) in the Codification.
References made to FASB guidance throughout this document have been updated for
the Codification.   10


---



THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012  Note 2 – Summary of significant Accounting Policies (continued)  Recently Adopted Accounting Pronouncements (continued)  In May 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance regardingFair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,which resulted in common requirements for measuring fair value and for disclosing information about fair value measurement under both U.S. GAAP and International Financial Reporting Standards (IFRS), including a consistent definition of the term "fair value." The amendments were effective beginning in the first quarter of 2012, and did not have a material effect on our consolidated financial statements.  In June 2011, the FASB issued Accounting Standards Update 2011-05,Presentation of Comprehensive Income. This update amended the provisions of FASB ASC 220-10 by eliminating the option of reporting other comprehensive income in the statement of changes in stockholders’ equity. Companies will have the option of presenting net income and other comprehensive income in a single, continuous statement of comprehensive income or presenting two separate but consecutive statements of net income and comprehensive income. The new presentation requirements are effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard is not anticipated to have a material impact on our financial statements.  In September 2011, the FASB issued Accounting Standards Update 2011-08,Testing Goodwill for Impairment. This update amended the provisions of FASB ASC 350-20-35 by allowing an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued. The adoption of this standard is not anticipated to have a material impact on our financial statements.  The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.  Loss Per Common Share  The Company complies with the accounting and disclosure requirements of FASB ASC 260,Earnings Per Share.Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted loss per common share incorporates the dilutive effect of common stock equivalents on an average basis during the period.       11


---



THE MOVIE STUDIO, INC.
 (FORMERLY DESTINATION TELEVISION, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012  Note 3 – Going Concern  The accompany financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that Destination Television, Inc. will continue in operation for a least one year and realize its assets and discharge its liabilities in the normal course of operations.  Several conditions cast doubt about the Company’s ability to continue as a going concern.   The Company has an accumulated deficit of approximately $9.2 million as of July 31, 2012, has no cash available for payment of operating expenses, no source of revenue, and requires additional financing in order to finance its business activities on ongoing basis. The Company’s future capital requirements will depend on numerous factors, including but not limited to continued progress in the pursuit of business opportunities.  The Company is actively pursuing alternative financing and has discussions with various third parties, although no firm commitments have been obtained.  In the interim, the principal shareholder has committed to meeting any operating expenses incurred by the Company. The Company believes that actions it is presently taking to revise its operating and financial requirements provide it with the opportunity to continue as a going concern.  The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern.  While we believe that the actions already taken or planned, will mitigate the adverse conditions and events which raise doubt about the validity of going concern assumption used in preparing these financial statements, there can be no assurance that these actions will be successful.  If the Company were unable to continue as a going concern, then substantial adjustments would be necessary to the carrying values of the reported liabilities.  Note 4 - Acquired Amortizable Intangible Assets  As of October 31, 2006, the Company invested $3,280 in establishing trademarks associated with its Bar TV concept. The Company amortizes the costs of these intangibles over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are also tested for impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested for impairment, at least annually, and written down to fair value as required.  Expected annual amortization expense related to amortizable intangible assets is as follows:  As of October 31,2012

   

   $

   752012

   

   

   300Thereafter

   

   

   280Total expected annual amortization expense

   $

   655
      12


---










THE MOVIE STUDIO, INC.

(FORMERLY DESTINATION TELEVISION, INC.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2012



Note 5 - Income Taxes

The Company has approximately $9.2 million in net operating loss carryovers available to reduce future income taxes. These carryovers expire at various dates through the year 2029. The Company has adopted FASB ASC Topic 740,Income Taxes,which provides for the recognition of a deferred tax asset based upon the value the loss carry-forwards will have to reduce future income taxes and management's estimate of the probability of the realization of these tax benefits. The Company's management determined that it was more likely than not that the Company's net operating loss carry-forwards would not be utilized; therefore, a valuation allowance against the related deferred tax asset has been established.



A summary of the deferred tax asset presented on the accompanying balance sheets is as follows:

July 31,

   

   

   October 31,2012

   

   

   2011Deferred tax asset:Net operating loss carryforwards

   $

   4,727,367

   

   $

   4,598,128Other Temporary differences

   

   -

   

   

   -Deferred tax asset

   

   4,727,367

   

   

   4,598,128Less: Valuation allowance

   

   (4,727,367)

   

   

   (4,598,128)Net deferred tax asset

   $

   -

   

   $

   -




July 31,

   

   October 31,2012

   

   2011Statutory federal income tax expense

   (34)

   %

   (34)

   %State and local income tax

   (4)

   

   

   (4)(net of federal benefits)Other temporary differences

   -

   

   

   -Valuation allowance

   38

   

   

   38-

   %

   

   -

   %




Note 6 - Commitments

Facilities




---



The Company leases from a stockholder, Dr. H. K. Terry, pursuant to an oral agreement on a month-to-month basis, an 8,500 square foot building in Fort Lauderdale, Florida, which serves as its administrative offices and computer operations center. The rent is $4,500 per month and the Company is responsible for utilities. Rent expense was $13,500 and $13,500 for the nine months ended July 31, 2012 and 2011, respectively. Employment Agreements Gordon Scott Venters is employed as the Company's president and chief executive officer, pursuant to an employment agreement, effective November 1, 2004.  The agreement was for an initial period of three years, with automatic renewals of one year.  The employment agreement, which extended a previous agreement, provides for an annual salary of $161,662; annual increases of a minimum of 5%; and participation in incentive or bonus plans at the discretion of the board of directors. The agreement additionally provides for certain confidentiality and non-competition provisions and a minimum payment of 18 months salary in the event of a change of control or termination (without cause), or if the employee terminates for good reason. The balance due Mr. Ventors a July 31, 2012 and October 31, 2011 for unpaid wages was approximately $647,347 and $547,597, respectively. 13   THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012  Note 7 - Payroll Taxes Payable  The Company has been delinquent in its payment of payroll taxes. As of July 31, 2009, the total of payroll taxes payable, including estimated interest and penalties, was $261,710. In August, October and November 2007, the Internal Revenue Service filed tax liens against the Company in the total amount of $198,351. In August 2007, the Company made a lump-sum payment of $48,000 and in November 2007, an additional lump sum payment of $18,600. These payments were made in connection with the Company's submission of an Offer in Compromise to settle its payroll tax obligations. The Offer in Compromise was rejected and the Company appealed the initial determination which also was rejected in June 2009. The IRS has determined that the debt is uncollectible from the Company, and has begun pursuing the president for the trust portion of the tax. There is no assurance that an acceptable settlement will be reached. Payroll tax obligations for the calendar years 2007, 2008, 2009, 2010 and 2011 have been paid as required.  The balance due the Internal Revenue Service at July 31, 2012 and October 31, 2011 was approximately $363,735 and $336,386, respectively.  Note 8 - Stockholders' Deficiency  Common Stock  Stock Issued for Cash  During the nine months ended July 31, 2012, the Company did not issue any shares of common stock.  During the nine months ended July 31, 2011, the Company did not issue any shares of common stock.  Stock Issued for Services  In During period ended July 31, 2012, the Company did not issue any shares of common stock.  In During period ended July 31, 2011, the Company did not issue any shares of common stock.  Preferred Stock


---



Series B Preferred Stock  The
Series B preferred stock is identical in all aspects to the common stock,
including the right to receive dividends, except that each share of Series B preferred
stock has voting rights equivalent to four times the number of shares of common
stock into which it could be converted. As of July 31, 2012 there were
5,750,000 shares of Series B preferred stock outstanding and on October 31, 2011
there were 5,750,000 shares outstanding. Each share of Series B preferred stock
is convertible into one share of common stock.       14  THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012  Note
9- Common Stock Options  No
options or warrants were outstanding at July 31, 2012 and October 31, 2011.  Note
10 – Litigation  As
of July 31, 2012, the Company was not a party to any existing or threatened
litigation.  Note
11 -  Related Party Transactions  Gordon Scott Venters  Effective November 2007, Gordon Scott
Venters, entered into a three-year employment agreement with the Company,
which is described above inNote 5-Commitments-Employment
Agreements. In November 2007, Mr. Venters, acquired
from the Company 2,000,000 shares of its Series B Preferred Stock as payment of
$56,000 of accrued unpaid salary. The shares were valued at $56,000, or $0.028
per share, which represented the approximate value, at the date of issuance, of
the common stock into which the Series B Preferred Stock may be converted.
Also, in September and October 2008, Mr. Venters, acquired a total 15,000,000
shares of common stock from the Company at an average price of approximately
$0.0051 as payment for accrued but unpaid salary of $76,000. The shares of
Series B Preferred Stock and the common shares have not been registered under
the Securities Act of 1933, as amended, and therefore, may not be transferred
in the absence of an exemption from registration under such laws and will be
considered "restricted securities" as that term is defined in Rule
144 adopted under the Securities Act, and may be sold only in compliance with
the resale provisions set forth therein.  In August 2006 and February 2007, Mr.
Venters made non-interest bearing unsecured loans to the Company in the amounts
of $25,000 and $5,000, respectively. In April 2007, the Company repaid the
$5,000 loan ; in addition to the repayment of the $5,000 loan, the Company also
issued 500,000 of its $0.0001 par value common stock in exchange for the
$25,000 loan and accrued wages.  These shares were valued at $0.052 per share.
Additionally, in August 2007, he acquired 1,000,000 shares of common stock,
which were valued at $0.04 per share, in exchange for $40,000 of accrued unpaid
salary. The balance due
Mr. Venters for unpaid wages as of July 31, 2012 and October 31, 2011 was$647,347 and $547,597, respectively.


---



Ventures Capital Partners, LLC  In April 2011, Ventures Capital Partners, LLC. (VCP) purchased a total debt of $1,353,420 from a related party shareholder for an equity.  VCP is owned by the president of the Company.    15     THE MOVIE STUDIO, INC. (FORMERLY DESTINATION TELEVISION, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JULY 31, 2012   Note 12 – Subsequent Events  In November 2012, the Company changed its name from Destination Television, Inc. to the Movie Studio, Inc.  During the month of November 2012, the Company became involved in litigation regarding the ownership of equipment left in the building by a previous tenant.  The building serves as the corporate headquarters for the Company.  The Company was ordered by the court to preserve the equipment until ownership can be established by the court.  The Company has made no claim of ownership of the equipment and expects to be dismissed from the litigation


---



16        Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations  THIS FILING CONTAINS FORWARD-LOOKING STATEMENTS. THE WORDS “ANTICIPATED,” “BELIEVE,” “EXPECT,” “PLAN,” “INTEND,” “SEEK,” “ESTIMATE,” “PROJECT,” “WILL,” “COULD,” “MAY,” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS INCLUDE, AMONG OTHERS, INFORMATION REGARDING FUTURE OPERATIONS, FUTURE CAPITAL EXPENDITURES, AND FUTURE NET CASH FLOW. SUCH STATEMENTS REFLECT THE COMPANY’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, INCLUDING, WITHOUT LIMITATION, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN FOREIGN, POLITICAL, SOCIAL, AND ECONOMIC CONDITIONS, REGULATORY INITIATIVES AND COMPLIANCE WITH GOVERNMENTAL REGULATIONS, THE ABILITY TO ACHIEVE FURTHER MARKET PENETRATION AND ADDITIONAL CUSTOMERS, AND VARIOUS OTHER MATTERS, MANY OF WHICH ARE BEYOND THE COMPANY’S CONTROL. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES OCCUR, OR SHOULD UNDERLYING ASSUMPTIONS PROVE TO BE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY AND ADVERSELY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, OR OTHERWISE INDICATED. CONSEQUENTLY, ALL OF THE FORWARD-LOOKING STATEMENTS MADE IN THIS FILING ARE QUALIFIED BY THESE CAUTIONARY STATEMENTS AND THERE CAN BE NO ASSURANCE OF THE ACTUAL RESULTS OR DEVELOPMENTS.  The following discussion and analysis of our financial condition and plan of operations should be read in conjunction with our financial statements and related notes appearing elsewhere herein. This discussion and analysis contains forward-looking statements including information about possible or assumed results of our financial conditions, operations, plans, objectives and performance that involve risk, uncertainties and assumptions. The actual results may differ materially from those anticipated in such forward-looking statements. For example, when we indicate that we expect to increase our product sales and potentially establish additional license relationships, these are forward-looking statements. The words expect, anticipate, estimate or similar expressions are also used to indicate forward-looking statements.  Plan of Operation  The Movie Studio, Inc. F/K/A Destination Television, Inc. (the "Company" or the "Registrant") was incorporated in the State of Delaware in 1961 under the name Magic Fingers, Inc. By amendment of its certificate of incorporation, the Company's name was changed in 1999 to Magicinc.com and in April 2002


to Magic Media Networks, Inc. and in February 2007 to Destination Television, Inc.  In November of 2012 the Company filed an amendment to change its name to The Movie Studio, Inc. Through the period ended October 31, 1999, the Company devoted substantially all its efforts to reorganizing its financial affairs and settling its debt obligations. During the fiscal years ended October 31, 2000 and October 31, 2001, the Company was engaged primarily in the planning and development of an interactive network to provide entertainment via the Internet. Subsequent to October 31, 2001, the Company redirected its business focus to the development of a private television network, in high traffic locations such as bars and nightclubs. During the development process, the Company received incidental revenue from the sale of advertising and the production of commercials.


---



17       Results of Operation  Three Months Ended July 31, 2012 Compared to Three months Ended July 31, 2011  Revenue  The Company had no revenues for the three months ended July 31, 2012 and 2011.  Expenses  For the three month period ended July 31, 2012 and 2011 selling snd administrative expenses were $33,964 and $33,964, respectively.  Other  For the three months ended July 31, 2012 and 2011, the Company reported interest expense of $9,116 and $9,116, respectively.  Nine months Ended July 31, 2011 Compared to Nine Months Ended July 31, 2010  Revenue  The Company had no revenues for the nine months ended July 31, 2012 and 2011.  Expenses  Selling, general and administrative expenses decreased $13,500 from $115,391 to $101,891 for the nine months ended July 31, 2011, as compared to the same period in 2010. These decreases were primarily due to the Company’s decreasing payroll costs.  Other  For the nine months ended July 31, 2012 and 2011, the Company reported interest expense of $27,348 and $33,900, respectively, an increase of $6,552 (19.3%).  Liquidity and Capital Resources


---



As of July, 2012 the Company had assets of $5,332 as against total liabilities of $2,411,610.The Company has an accumulated deficit of approximately $9.2 million as of July 31, 2012, has no cash available for payment of operating expenses, no source of revenue, and requires additional financing in order to finance its business activities on ongoing basis. The Company’s future capital requirements will depend on numerous factors, including but not limited to continued progress in the pursuit of business opportunities.  The Company is actively pursuing alternative financing and has discussions with various third parties, although no firm commitments have been obtained.  In the interim, the principal shareholder has committed to meeting any operating expenses incurred by the Company. The Company believes that actions it is presently taking to revise its operating and financial requirements provide it with the opportunity to continue as a going concern.  Item  3.Quantitative and Qualitative Disclosures About Market Risk  Not applicable.   **** 18    Item 4. Controls and Procedures  (a)           Evaluation of disclosure controls and procedures.  Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 (Exchange Act) as a process designed by or under the supervision of, our principal executive and principal financial officers and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:  Pertain to the maintenance of records that is in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets  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 the Company are being made only in  accordance with authorizations of our management and directors: and  Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.  Management assessed the effectiveness of the Company’s Internal Control over financial reporting as of July 31, 2012. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in this Internal Control-Integrated Framework.  Based on our assessment, we believe that, as of July 31, 2012 our internal control over financial reporting was not effective.


---



Evaluation of Disclosure Controls and Procedures  We maintain disclosure controls and procedures (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SECâ€TMs rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.  In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.    19     Our management, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of January 31, 2010.  Based on their evaluation, our chief executive officer and chief financial officer have concluded that, as of January 31, 2010, our disclosure controls and procedures were not effective.  (b)            Changes in internal controls.  There have not been any changes in the Companyâ€TMs internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended January 31, 2010 that have materially affected, or are reasonably likely to materially affect, the Companyâ€TMs internal control over financial reporting.  PART II - OTHER INFORMATION  Item 1. Legal Proceedings  During the month of November 2012, the Company became involved in litigation regarding the ownership of equipment left in the building by a previous tenant.  The building serves as the corporate headquarters for the Company.  The Company was ordered by the court to preserve the equipment until ownership can be established by the court.  The Company has made no claim of ownership of the equipment and expects to be dismissed from the litigation.  Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds  During the nine month period ended July 31, 2012, there was no modification of any instruments defining the rights of holders of the Companyâ€TMs common stock and no limitation or qualification of the rights evidenced by the Companyâ€TMs common stock as a result of the issuance of any other class of securities or the modification thereof.  Item 3.     Defaults upon Senior Securities  There have been no defaults in any material payments during the covered period.  Item 4.     Mine Safety Disclosures  Not applicable.


---



Item 5.     Other Information  The Company does not have any other material information to report with respect to the nine month period ended July 31, 2012.  Item 6.  Exhibits and Reports on Form 8-K  (a)Exhibits  33.1 Certification pursuant to Section 302 of Sarbanes Oxley Act of  2002   33.2 Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002  (b)Reports on Form 8-K  No reports on Form 8-K were filed during the quarter ended July 31, 2012.  20       SIGNATURES   In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.   THE MOVIE STUDIO, INC.  Date:  August 1, 2013  /s/ Gordon Scott Venters Gordon Scott Venters President, Secretary and Director


---



21    EXHIBIT 33.1   CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  I, Gordon Scott Venters, certify that:  1.I have reviewed this Quarterly Report on Form 10-Q of The Movie Studio, Inc.  2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this report;  4.The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:  (a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial


statements for external purposes in accordance with generally accepted accounting principles;


---



(c)Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d)Disclosed in this report any change in the small business issuer’s internal control over financing reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and  5.The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financialreporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):   22     (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and (b)Any fraud, whether or not material, that involved management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.   Dated:  August 1, 2013  /s/ Gordon Scott Venters Gordon Scott Venters Chief Executive Officer Chief Accounting Officer


---



**** 23       EXHIBIT 33.2  CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with this Quarterly Report of The Movie Studio, Inc. (the “Company”) on Form 10-Q for the period ending July 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gordon Scott Venters, Chief Executive Officer and Chief Accounting Officer of the Company, certifies to the best of his knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:  1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and  2.The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.  By:/s/ Gordon Scott Venters Gordon Scott Venters Chief Executive Officer Chief Accounting Officer  Dated:  August 1, 2013


---



24