| CALIFORNIA                                                          | 20-5611551                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

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| PART I: FINANCIAL      INFORMATION |   |                                                                                                  |
|------------------------------------|--------|-------------------------------------------------------------------------------------------------------|
| ITEM 1:                            |   | FINANCIAL STATEMENTS      (Unaudited)                                                                 | 3 |   |
|                               |   | Balance    Sheets                                                                                     | 3 |   |
|                               |   | Statements of      Operations                                                                         | 4 |   |
|                               |   | Statements of Cash      Flows                                                                         | 5 |   |
|                               |   | Notes to the Financial      Statements                                                                | 6 |   |
| ITEM 2:                            |   | MANAGEMENT’S DISCUSSION AND      ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS | 23 |   |
| ITEM 3 :                           |   | QUANTITATIVE AND QUALITATIVE      DISCLOSURES ABOUT MARKET RISK                                       | 27 |   |
| ITEM 4:                            |   | CONTROLS AND PROCEDURES                                                                               | 28 |   |
| PART II: OTHER      INFORMATION    | 28     |                                                                                                  |
| Item      1                        |   | LEGAL PROCEEDINGS                                                                                     | 28 |   |
| ITEM 1A :                          |   | RISK    FACTORS                                                                                       | 28 |   |
| ITEM 2                             |   | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS                                      | 28 |   |
| ITEM 3                             |   | DEFAULTS UPON SENIOR    SECURITIES                                                                    | 28 |   |
| ITEM 4                             |   | SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS                                              | 28 |   |
| ITEM 5                             |   | OTHER INFORMATION                                                                                     | 28 |   |
| ITEM 6:                            |   | EXHIBITS                                                                                              | 28 |   |
| SIGNATURES                         | 29     |                                                                                                  |

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 – FINANCIALINFORMATION

|                                                                                                                                      |   | March      31, 2008 |        |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-------------|--------|------------------------|--------|
|                                                                                                                                      |   | (Unaudited)         |        |   |                   |   |
| ASSETS                                                                                                                                    |   |                |        |   |                   |   |
|                                                                                                                                      |   |                |        |   |                   |   |
| Current      assets:                                                                                                                      |   |                |        |   |                   |   |
| Cash      and cash equivalents                                                                                                            |   | $                   | 150,527     |   |                   | $      | 4,445 |   |
| Accounts      receivable                                                                                                                  |   |                | 38,600      |   |                   |   | 44,695 |   |
| Other      receivable                                                                                                                     |   |                | 50,000      |   |                   |   | 20,000 |   |
| Prepaid      expenses                                                                                                                     |   |                | 112,966     |   |                   |   | 109,124 |   |
| Inventory                                                                                                                                 |   |                | 54,823      |   |                   |   | 59,528 |   |
| Other      current assets                                                                                                                 |   |                | 247         |   |                   |   | - |   |
| Total      current assets                                                                                                                 |   |                | 407,163     |   |                   |   | 237,792 |   |
| Property      and equipment, net                                                                                                          |   |                | 245,090     |   |                   |   | 257,130 |   |
| Web      sites                                                                                                                            |   |                | 40,000      |   |                   |   | 40,000 |   |
| Character      rights, net                                                                                                                |   |                | 205,435     |   |                   |   | 228,261 |   |
| Deposits      and other                                                                                                                   |   |                | 39,118      |   |                   |   | 39,118 |   |
| Total      assets                                                                                                                         |   | $                   | 936,806     |   |                   | $      | 802,301 |   |
| LIABILITIES AND      SHAREHOLDERS' DEFICIT                                                                                                |   |                |        |   |                   |   |   |   |
|                                                                                                                                      |   |                |        |   |                   |   |   |   |
| Current      liabilities:                                                                                                                 |   |                |        |   |                   |   |   |   |
| Accounts      payable                                                                                                                     |   | $                   | 856,332     |   |                   | $      | 663,848 |   |
| Accrued      expenses and other current liabilities                                                                                       |   |                | 1,058,283   |   |                   |   | 788,868 |   |
| Bank      overdraft                                                                                                                       |   |                | -           |   |                   |   | 89,665 |   |
| Deferred      revenue                                                                                                                     |   |                | 1,750       |   |                   |   | 100,000 |   |
| Short      term notes payable                                                                                                             |   |                | 1,881,037   |   |                   |   | 1,889,908 |   |
| Related      party payable                                                                                                                |   |                | 193,079     |   |                   |   | 193,079 |   |
| Capital      leases payable, current                                                                                                      |   |                | 75,288      |   |                   |   | 73,282 |   |
| Total      current liabilities                                                                                                            |   |                | 4,065,769   |   |                   |   | 3,798,650 |   |
| Long      term notes payable to shareholder                                                                                               |   |                | 2,551,263   |   |                   |   | 2,531,464 |   |
| Accrued      interest due to shareholder                                                                                                  |   |                | 75,905      |   |                   |   | 60,479 |   |
| Capital      leases payable, non-current                                                                                                  |   |                | 89,815      |   |                   |   | 106,395 |   |
| Total      liabilities                                                                                                                    |   |                | 6,782,752   |   |                   |   | 6,496,988 |   |
|                                                                                                                                      |   |                |        |   |                   |   |   |   |
| Common      stock, $.0001 par value; 500,000,000 shares authorized; 217,008,614 and      201,255,825 issued and outstanding, respectively |   |                | 21,701      |   |                   |   | 20,126 |   |
| Additional      paid in capital                                                                                                           |   |                | 8,257,545   |   |                   |   | 3,750,782 |   |
| Accumulated      deficit                                                                                                                  |   |                | (14,125,192 | )      |                   |   | (9,465,595 | ) |
| Total      shareholders' deficit                                                                                                          |   |                | (5,845,946  | )      |                   |   | (5,694,687 | ) |
| Total      liabilities and shareholders' deficit                                                                                          |   | $                   | 936,806     |   |                   | $      | 802,301 |   |

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|                                                   |   | Three      Months Ended |        |
|--------------------------------------------------------|--------|-------------------------|-------------|
|                                                   |   | March      31,          |        |
|                                                   |   | 2008                    |        |   | 2007 |   |
| Net      revenue                                       |   | $                       | 179,382     |   |   | $ | 1,037,829 |   |
|                                                   |   |                    |        |   |   |   |   |   |
| Costs      and expenses:                               |   |                    |        |   |   |   |   |   |
| Cost      of revenues (excluding depreciation expense) |   |                    | 67,573      |   |   |   | 35,411 |   |
| Operating      expenses                                |   |                    | 1,082,628   |   |   |   | 1,206,412 |   |
| Research      and development                          |   |                    | 212,553     |   |   |   | 276,927 |   |
| Stock      option expense                              |   |                    | 3,376,692   |   |   |   | - |   |
| Depreciation      and amortization                     |   |                    | 44,339      |   |   |   | 38,488 |   |
| Total      costs and expenses                          |   |                    | 4,783,785   |   |   |   | 1,557,238 |   |
| Operating      loss                                    |   |                    | (4,604,403  | ) |   |   | (519,409 | ) |
| Other      income (expense):                           |   |                    |        |   |   |   |   |   |
| Other      income                                      |   |                    | 182         |   |   |   | - |   |
| Gain      (loss) on disposition of assets              |   |                    | 100         |   |   |   | - |   |
| Gain      on settlement of debt                        |   |                    | 37,334      |   |   |   | - |   |
| Interest      expense                                  |   |                    | (92,810     | ) |   |   | (77,802 | ) |
| Total      other income (expense):                     |   |                    | (55,194     | ) |   |   | (77,802 | ) |
| Loss      before provision for income taxes            |   |                    | (4,659,597  | ) |   |   | (597,211 | ) |
| Provision      for income taxes                        |   |                    | -           |   |   |   | - |   |
| Net      loss                                          |   | $                       | (4,659,597  | ) |   | $ | (597,211 | ) |
|                                                   |   |                    |        |   |   |   |   |   |
| Basic      and diluted loss per share:                 |   |                    |        |   |   |   |   |   |
| Net      loss per share                                |   | $                       | (0.02       | ) |   | $ | (0.00 | ) |
| Basic      and diluted weighted average shares         |   |                    | 211,938,990 |   |   |   | 201,255,825 |   |

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|                                                                             |   | Three      Months Ended March 31, |       |
|----------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                             |   | 2008                              |       |   | 2007 |   |
| Cash      flows from operating activities                                        |   |                              |       |   |   |   |
| Net      loss                                                                    |   | $                                 | (4,659,597 | ) |   | $ | (597,211 | ) |
| Adjustments      to reconcile net loss to net cash from operating    activities: |   |                              |       |   |   |   |   |   |
| Depreciation                                                                     |   |                              | 21,513     |   |   |   | 15,662 |   |
| Amortization                                                                     |   |                              | 22,826     |   |   |   | 22,826 |   |
| Equity      instruments issued for services                                      |   |                              | 3,376,692  |   |   |   | - |   |
| Gain      on settlement of debt                                                  |   |                              | (37,334    | ) |   |   | - |   |
| Decrease      (increase) in operating assets:                                    |   |                              |       |   |   |   |   |   |
| Accounts      receivable                                                         |   |                              | 6,095      |   |   |   | (220 | ) |
| Other      receivable                                                            |   |                              | (30,000    | ) |   |   | - |   |
| Inventories                                                                      |   |                              | 4,705      |   |   |   | (66,366 | ) |
| Prepaid      expenses and other current assets                                   |   |                              | (1,097     | ) |   |   | (91,563 | ) |
| Increase      (decrease) in operating liabilities:                               |   |                              |       |   |   |   |   |   |
| Accounts      payable                                                            |   |                              | 223,734    |   |   |   | (45,911 | ) |
| Accounts      payable related party                                              |   |                              | -          |   |   |   | (25,000 | ) |
| Bank      overdraft                                                              |   |                              | (89,665    | ) |   |   | - |   |
| Accrued      expenses                                                            |   |                              | 269,415    |   |   |   | 172,950 |   |
| Accrued      interest                                                            |   |                              | 43,671     |   |   |   | 33,829 |   |
| Deferred      revenue                                                            |   |                              | (98,250    | ) |   |   | (300,000 | ) |
| Net      cash flows used in operating activities                                 |   |                              | (947,292   | ) |   |   | (881,004 | ) |
|                                                                             |   |                              |       |   |   |   |   |   |
| Cash      flows from investing activities                                        |   |                              |       |   |   |   |   |   |
| Investment      in property and equipment                                        |   |                              | (2,403     | ) |   |   | (11,070 | ) |
| Purchase      of domain name                                                     |   |                              | -          |   |   |   | (1,000 | ) |
| Net      cash flows used in investing activities                                 |   |                              | (2,403     | ) |   |   | (12,070 | ) |
|                                                                             |   |                              |       |   |   |   |   |   |
| Cash      flows from financing activities                                        |   |                              |       |   |   |   |   |   |
| Proceeds      from non-related loans                                             |   |                              | 150,000    |   |   |   | - |   |
| Proceeds      from related party loans                                           |   |                              | 19,799     |   |   |   | 95,000 |   |
| Payments      on related party loans                                             |   |                              | (83,500    | ) |   |   | - |   |
| Payments      on capital leases                                                  |   |                              | (21,643    | ) |   |   | (13,612 | ) |
| Issuance      of common stock, net of offering costs                             |   |                              | 1,031,121  |   |   |   | 1,141,216 |   |
| Net      cash flows provided by financing activities                             |   |                              | 1,095,777  |   |   |   | 1,222,604 |   |
|                                                                             |   |                              |       |   |   |   |   |   |
| Net      increase/(decrease) in cash                                             |   |                              | 146,082    |   |   |   | 329,530 |   |
| Cash,      at beginning of year                                                  |   |                              | 4,445      |   |   |   | 331,435 |   |
| Cash,      at end of period                                                      |   | $                                 | 150,527    |   |   | $ | 660,965 |   |
|                                                                             |   |                              |       |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                           |   |                              |       |   |   |   |   |   |
|                                                                             |   |                              |       |   |   |   |   |   |
| Cash      paid for interest                                                      |   | $                                 | 61,555     |   |   | $ | 43,817 |   |
| Cash      paid for taxes                                                         |   | $                                 | -          |   |   | $ | - |   |
| Stock      issued as payments of accounts payable and accruedinterest            |   | $                                 | 100,525    |   |   | $ | - |   |

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|   | Nature of operations      –  The Company controls a library consisting of more than 5,600      characters and is engaged principally as a comics-based entertainment      company adapting characters and storylines for production in film,      television, publishing and all othermedia. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Platinum      Studios, LLC was formed and operated as a California limited liability      company from its inception on November 20, 1996 through September 14,      2006.  On September 15, 2006, Platinum Studios, LLC filed with      the State of California to convert Platinum Studios, LLC into Platinum      Studios, Inc., (“the Company”, “Platinum”) a California      corporation. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | This      change to the Company structure was made in preparation of a private      placement memorandum and common stock offering in October, 2006 (Note      12). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (      2 ) | Basis of financial      statement presentation |
|------------|------------------------------------------------|

|   | The      accompanying unaudited condensed financial statements of the Company have      been prepared in accordance with United States generally accepted      accounting principles for interim financial statements and with the      instructions to Form 10-Q and Article 10 of Regulation S-X, promulgated by      the Securities and Exchange Commission (the “SEC”). Accordingly, they do      not include all of the information and disclosures required by United      States generally accepted accounting principles for complete financial      statements. In the opinion of management, all adjustments (consisting of      normal recurring adjustments) considered necessary for a fair presentation      have been included.  The results of operations for interim      periods are not necessarily indicative of the results that may be expected      for the fiscal year.  The condensed financial statements should      be read in conjunction with the Company’s December 31, 2007 financial      statements and accompanying notes included in the Company’s Annual Report      on Form 10-K (the “Annual Report”).  All terms used but not      defined elsewhere herein have the meanings ascribed to them in the Annual      Report. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      balance sheet at December 31, 2007 has been derived from the audited      financial statements at that date but does not include all the information      and footnotes required by United States generally accepted accounting      principles for complete financialstatements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (      3 ) | Going      concern |
|------------|--------------------|

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| (      4 ) | Summary of significant      accounting policies |
|------------|-------------------------------------------------|

|   | Reclassifications –      Certain prior year amounts have been reclassified in order to conform to      the current year’s presentation. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Revenue recognition -      Revenue  from  the  licensing  of  characters  and  storylines  (“the      properties”) owned by the Company are recognized in accordance with      guidance provided in Securities and Exchange Commission Staff Accounting      Bulletin No. 104 “Revenue Recognition” (an amendment of Staff Accounting      Bulletin No. 101 “Revenue Recognition”) (“SAB 104”).  Under the      SAB 104 guidelines, revenue is recognized when the earnings process is      complete.  This is considered to have occurred when persuasive      evidence of an agreement between the customer and the Company exists, when      the properties are made available to the licensee and the Company has      satisfied its obligations under the agreement, when the fee is fixed or      determinable and when collection is reasonably  assured. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company derives its licensing revenue primarily from options to purchase      rights, the purchase of rights to properties and first look deals. For      option agreements and first look deals that contain non-refundable payment      obligations to us, we recognize such non-refundable payments as revenue at      the inception of the agreement and receipt of payment, prior to the      collection of any additional amounts due, provided all the criteria for      revenue recognition under SAB 104 have been met. First look deals that      have contingent components are deferred and recognized at the later of the      expiration of the first look period or in accordance with the terms of the      first look contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Use of estimates - The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States requires management to      make estimates and assumptions that affect the reported amounts of assets      and liabilities and disclosure of contingent assets and liabilities at the      date of financial statements, and the reported amounts of revenues and      expenses during the reporting periods. Actual results could differ from      those estimates. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Cash and cash      equivalents – The Company considers all highly liquid investment      securities with an original maturity date of three months or less to be      cash equivalents. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Accounts receivable –      Trade receivables are carried at original invoice amount. The company does      not regularly issue credit to its customers. The Company performs ongoing      reviews of its receivables for collectability. Trade receivables are      written off when deemed uncollectable. Recoveries of trade receivables      previously written off are recorded as income when received. No trade      receivables were written off for the three months ended March 31, 2008 and      2007. The Company’s allowance for doubtful accounts was $0 as of March 31,      2008 and December 31, 2007. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Concentrations of risk -      Financial instruments that potentially subject the Company to      concentrations of credit risk consist primarily of uninsured cash      balances.  The Company maintains its cash balances with what      management believes to be a high creditquality |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | financial      institution. At times, balances within the Company’s cash accounts may      exceed the Federal Deposit Insurance Corporation (FDIC) limit of      $100,000. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During      the three months ended March 31, 2008 and 2007, the Company had customer      revenues representing a concentration of the Company’s total revenues. For      the three months ended March 31, 2008, three customers represented      approximately 56%, 19% and 15% of total revenues. For the three months      ended March 31, 2007, one customer represented approximately 96% of the      Company’s total revenues. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Depreciation -      Depreciation is computed on the straight-line method over the following      estimated useful lives: |
|--------|--------------------------------------------------------------------------------------------------------------------------|

| Fixed      assets                       | Useful Lives                             |
|-----------------------------------------|----------------------------------------------------|
|                                    |                                               |
| Furniture      and fixtures             | 7      years                                       |
| Computer      equipment                 | 5      years                                       |
| Office      equipment                   | 5      years                                       |
| Software                                | 3      years                                       |
| Leasehold      improvements   | Shorter of lease      term or useful economic life |

|   | Character development      costs - Character development costs consist primarily of costs to      acquire properties from the creator, development of the property using      internal or independent writers and artists, and the registration of a      property for a trademark or copyright.  These costs are      capitalized in the year incurred if the Company has executed a contract or      is negotiating a revenue generating opportunity for the      property.  If the propertyderives |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ( 4 ) | Summary      of significant accounting policies  (continued) |
|-------|--------------------------------------------------------------|

|   | a      revenue stream that is estimable, the capitalized costs associated with      the property are expensed as revenue is  recognized. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | Purchased intangible assets and      long-lived assets – Intangible assets are capitalized at      acquisition costs and intangible assets with definite lives are amortized      on the straight-line basis.  The Company periodically reviews      the carrying amounts of intangible assets and property in conformance with      the Statement of Financial Accounting Standards No. 144, Accounting for the Impairment      or Disposal of Long-Lived Assets (SFAS 144).  Under SFAS      144, long-lived assets, such as property and equipment, and purchased      intangibles subject to amortization, are reviewed for impairment whenever      events or changes in circumstances indicate that the carrying amount of an      asset may not be recoverable. Recoverability of assets to be held and used      is measured by a comparison of the carrying amount of an asset to the      estimated undiscounted future cash flows expected to be generated by the      asset. If the carrying amount of an asset exceeds its estimated future      cash flows, the impairment charge to be recognized is measured by the      excess of the carrying amount over the fair value of the      asset. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Advertising costs -      Advertising costs are expensed the later of when incurred or when the      advertisement is first run.  For the three months ended March      31, 2008 and 2007 advertising expenses were $42,189 and $104,998,      respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Research and development      - Research and development costs, primarily character development      costs and design not associated with an identifiable revenue opportunity,      are |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | In      February 2007, the FASB issued SFAS No. 159, The Fair Value Option for      Financial Assets and Financial Liabilities – Including an Amendment of      FASB Statement No. 115.  This statement permits entities to      choose to measure many financial instruments and certain other items at      fair value.  Most of the provisions of SFAS No.159 apply only to      entities that elect the fair value option.  However, the      amendment to SFAS No. 115 Accounting for Certain Investments in Debt and      Equity Securities applies to all entities with available-for-sale and      trading securities.  SFAS No. 159 is effective as of the      beginning of an entity’s first fiscal year that begins after November 15,      2007.  The Company adopted SFAS No. 159 on January 1, 2008,      resulting in no financial statementimpact. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | In      September 2006, the FASB issued SFAS No. 157, Fair Value      Measurements.  SFAS No. 157  defines fair value,      establishes a framework for measuring fair value, and requires enhanced      disclosures about fair value measurements.  SFAS No. 157      requires companies to disclose the fair value of their financial      instruments according to a fair value hierarchy as defined in the      standard.  Additionally, companies are required to provide      enhanced disclosure regarding financial instruments in one of the      categories, including a reconciliation of the beginning and ending      balances separately for each major category of assets and      liabilities.  In February 2008, the FASB issued FASB Staff      Position (FSP) No. FAS 157-2, which delays by one year the effective date      of SFAS No. 157 for certain types of non-financial assets and      non-financial liabilities.  As a result, SFAS No. 157 will be      effective for financial statements issued for fiscal years beginning after      November 15, 2007, or the company’s fiscal year beginning January 1, 2008,      for financial assets and liabilities carried at fair value on a recurring      basis, and on January 1, 2009, for non-recurring non-financial assets and      liabilities that are recognized or disclosed at fair value.  The      Company adopted SFAS No. 157 on January 1, 2008, for financial assets and      liabilities carried at fair value on a recurring basis, with no material      impact on its financial statements.  The Company is currently      unable to determine what impact the application of SFAS No. 157 on January      1, 2009, for non-recurring non-financial assets and liabilities that are      recognized or disclosed at fair value, will have on its financial      statements. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of      Financial Assets.  This statement amends SFAS 140, Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities,  a replacement of FASB Statement 125, or SFAS 140,      regarding (1) the circumstances under which a servicing asset or servicing      liability must be recognized (2) the initial and subsequent measurement of      recognized servicing assets and liabilities, and (3) information required      to be disclosed relating to servicing assets and      liabilities.  The Company adopted this standard on January 1,      2007, with no impact on its consolidated financial    statements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | EITF      No. 07-3, Accounting for Nonrefundable Advance Payments for Goods or      Services Received for Use in Future Research and Development Activities,      was issued in June 2007. The EITF reached a consensus that nonrefundable      payments for goods and services that will be used or rendered for future      research and development activities should be deferred and      capitalized.  Such amounts should be recognized as an expense as      the related goods are delivered and the related services are      performed.  Entities should continue to evaluate whether they      expect the goods to be delivered or services to      be  rendered.  If the entity does not expect the goods      to be delivered or services to be rendered, the capitalized advance      payment should be charged to expense.  This pronouncement is      effective for financial statements issued for fiscal years beginning after      December 15, 2007 (the Company’s fiscal year beginning January 1, 2008)      and interim periods within those fiscal years.  Earlier      application is not permitted.  Entities are required to report      the effects of applying this pronouncement prospectively for new contracts      entered into on or after the effective date of this      pronouncement.  The Company currently is not a party to research      and development arrangements that include nonrefundable advance      payments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ( 5 ) | Inventory |
|-------|-----------|

|   | Inventory      is stated at the lower of cost (computed on a first-in, first-out basis)      or market. The inventory consists of finished goods purchase for      resale. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | March      31, 2008 (Unaudited) |   |   | December      31, 2007 |   |
|-----------------------|--------|---------------------------------|--------|--------|------------------------|--------|
|                  |   |                            |   |   |                   |   |
| Kiss      merchandise |   |                            | 54,823 |   |                   |   | 59,528 |   |
|                  |   |                            |   |   |                   |   |   |   |
|                  |   | $                               | 54,823 |   |                   | $      | 59,528 |   |

|   | For      the three months ended March 31, 2008 and the year ended December 31, 2007      the Company recorded no inventory impairment or inventory reserve      expense. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ( 6 ) | Property      and equipment |
|-------|-----------------------------|

|   | Property      and equipment are recorded at cost. The cost of repairs and maintenance      are expensed when incurred, while expenditures refurbishments and      improvements that significantly add to the productive capacity or extend      the useful life of an asset are capitalized.  Upon asset      retirement or disposal, any resulting gain or loss is included in the      results of operations. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | March      31, 2008 (Unaudited) |     |   | December      31, 2007 |   |
|------------------------------------|--------|---------------------------------|----------|--------|------------------------|--------|
| Property      and equipment, cost: |   |                            |     |   |                   |   |
| Office      equipment              |   | $                               | 13,207   |   |                   | $      | 10,804 |   |
| Furniture      and fixtures        |   |                            | 118,140  |   |                   |   | 118,140 |   |
| Computer      equipment            |   |                            | 158,291  |   |                   |   | 151,220 |   |
| Software                           |   |                            | 91,292   |   |                   |   | 91,292 |   |
| Leasehold      improvements        |   |                            | 20,557   |   |                   |   | 20,557 |   |
|                               |   |                            | 401,487  |   |                   |   | 392,013 |   |
| Less      accumulated depreciation |   |                            | (156,397 | )      |                   |   | (134,883 | ) |
|                               |   |                            |     |   |                   |   |   |   |
| Net      property and equipment    |   | $                               | 245,090  |   |                   | $      | 257,130 |   |

|                                              |   | March      31, 2008 (Unaudited) |    |   | December      31, 2007 |   |
|---------------------------------------------------|--------|---------------------------------|---------|--------|------------------------|--------|
|                                              |   |                            |    |   |                   |   |
| B.Altounian      - Consulting prior to employment |   |                            | 193,079 |   |                   |   | 193,079 |   |
|                                              |   |                            |    |   |                   |   |   |   |
|                                              |   | $                               | 193,079 |   |                   | $      | 193,079 |   |

| Short-term      debt                                                                                                                                                                                                                                                               |   | March      31, 2008 (Unaudited) |    |   | December      31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                               |   |                            |    |   |                   |   |
| Loan      payable to member - uncollateralized; payable in monthly installments of      interest only at variable interest rates. At  March 31, 2008 and      December 31, 2007 , the interest rates were 5.15% and 7.15%,      respectively.  Due upon demand |   | $                               | 735,874 |   |                   | $      | 740,011 |   |
| Loan      payable to 3rd party - uncollateralized; payable in annual installments of      interest only at 6%. Due upon demand                                                                                                                                                     |   |                            | 17,938  |   |                   |   | 17,676 |   |

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| Short-term      debt                                                                                                                                                                                                                              |   | March      31, 2008 (Unaudited) |    |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|------------------------|--------|
| Loan      payable to member - uncollateralized; payable in monthly installments of      interest only at 5%. Due upon demand.                                                                                                                     |   |                            | 128,535 |   |                   |   | 160,964 |   |
| Loan      payable to member - uncollateralized; payable in monthly installments of      principal and interest at varying rates. The rate at March 31, 2008 and      December 31, 2007 was 3.99%. Due upon demand.                                |   |                            | 122,660 |   |                   |   | 120,570 |   |
| Loan      payable to member - uncollateralized; payable in monthly installments of      principal and interest at varying rates. The rate at March 31, 2008 and      December 31, 2007 was 15.99% and 17.49%, respectively. Due upon      demand. |   |                            | 15,496  |   |                   |   | 15,917 |   |
| Loan      payable to member - uncollateralized; interest only at 5%. Due upon      demand.                                                                                                                                                        |   |                            | 11,152  |   |                   |   | 10,000 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 5%. Payable on demand.                                                                                                              |   |                            | 510     |   |                   |   | 510 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due April, 2008.                                                                                                               |   |                            | 109,279 |   |                   |   | 213,315 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 18%. Due April, 2008.                                                                                                               |   |                            | 28,695  |   |                   |   | 27,573 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 18%. Due April, 2008.                                                                                                               |   |                            | 114,778 |   |                   |   | 110,290 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due June, 2008.                                                                                                                |   |                            | 109,649 |   |                   |   | 106,658 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due June, 2008.                                                                                                                |   |                            | 27,445  |   |                   |   | 26,697 |   |

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| Short-term      debt                                                                                                                                                                                                                                                                                                                                                            |   | March      31, 2008 (Unaudited) |      |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|------------------------|--------|
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due June, 2008.                                                                                                                                                                                                                                              |   |                            | 27,421    |   |                   |   | 26,673 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due May, 2008.                                                                                                                                                                                                                                               |   |                            | 55,630    |   |                   |   | 54,149 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due June, 2008.                                                                                                                                                                                                                                              |   |                            | 16,482    |   |                   |   | 16,033 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due May, 2008.                                                                                                                                                                                                                                               |   |                            | 72,078    |   |                   |   | 109,195 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due May, 2008.                                                                                                                                                                                                                                               |   |                            | 27,503    |   |                   |   | 26,755 |   |
| Loan      payable to shareholder - uncollateralized; payable in monthly installments      of interest only at 12%. Due June, 2008.                                                                                                                                                                                                                                              |   |                            | 109,912   |   |                   |   | 106,922 |   |
| Loan      payable to bank - uncollateralized; payable in monthly installments of      interest only at 9%. Due April, 2008.                                                                                                                                                                                                                                                     |   |                            | 150,000   |   |                   |   | - |   |
| Total      short-term debt                                                                                                                                                                                                                                                                                                                                                      |   | $                               | 1,881,037 |   |                   | $      | 1,889,908 |   |
|                                                                                                                                                                                                                                                                                                                                                                            |   |                            |      |   |                   |   |   |   |
| Long-term      debt                                                                                                                                                                                                                                                                                                                                                             |   |                            |      |   |                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                            |   |                            |      |   |                   |   |   |   |
| Loan      payable to member - uncollateralized; payable in monthly installments of      interest only at variable interest rates. At March 31, 2008 and December      31, 2007, the interest rates were 7.151% and 7.487%,      respectively.  Monthly payments of principal and interest      begin  on July 1, 2009; final payment due June 1,      2034. |   |                            | 1,293,989 |   |                   |   | 1,293,989 |   |
|                                                                                                                                                                                                                                                                                                                                                                            |   |                            |      |   |                   |   |   |   |
| Loan      payable to member - uncollateralized; principal includes interest accrued      at variable interest rates.  At March 31, 2008 and December 31,      2007 the interest rate was 5.0%. The loans are due June 30,      2010.                                                                                                                                  |   |                            | 1,257,274 |   |                   |   | 1,237,475 |   |
|                                                                                                                                                                                                                                                                                                                                                                            |   |                            |      |   |                   |   |   |   |
| Total      long-term debt                                                                                                                                                                                                                                                                                                                                                       |   | $                               | 2,551,263 |   |                   | $      | 2,531,464 |   |
|                                                                                                                                                                                                                                                                                                                                                                            |   |                            |      |   |                   |   |   |   |
| Total      short-term and long-term debt                                                                                                                                                                                                                                                                                                                                        |   | $                               | 4,432,300 |   |                   | $      | 4,421,372 |   |

----

| Years Ending December      31,                       |   |   |      |
|------------------------------------------------------|--------|--------|-----------|
|                                                 |   |   | -         |   |
| 2008                                                 |   |   | 1,881,037 |   |
| 2009                                                 |   |   | 8,699     |   |
| 2010                                                 |   |   | 1,275,708 |   |
| 2011                                                 |   |   | 19,907    |   |
| 2012                                                 |   |   | 21,496    |   |
| Thereafter                                           |   |   | 1,225,453 |   |
|                                                 |   |   |      |   |
| Total      short-term and long-term debt obligations |   |   | 4,432,300 |   |

|   | The      Company has entered into operating leases having expiration dates through      2011 for real estate and various equipment needs, including office      facilities, computers, office equipment and a  vehicle. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Years Ending December      31,                |   | Capital Leases   |      |
|-----------------------------------------------|--------|-----------------------|-----------|
| 2008                                          |   | $                     | 94,303    |   |
| 2009                                          |   |                  | 58,060    |   |
| 2010                                          |   |                  | 37,947    |   |
| 2011                                          |   |                  | 24,705    |   |
| Thereafter                                    |   |                  | -         |   |
|                                          |   |                  |      |   |
| Total      minimum obligations                |   |                  | 215,015   |   |
|                                          |   |                  |      |   |
| Less      amounts representing interest       |   |                  | 35,338    |   |
|                                          |   |                  |      |   |
| Present      value of net minimum obligations |   |                  | 179,677   |   |
| Less      current portion                     |   |                  | 73,282    |   |
|                                          |   |                  |      |   |
| Long-term      portion                        |   | $                     | 106,395   |   |
|                                          |   |                  |      |   |
|                                          |   |                  |      |   |
|                                          |   |                  |      |   |
| Years Ending December      31,                |   | Operating      Leases |      |
| 2008                                          |   | $                     | 427,945   |   |
| 2009                                          |   |                  | 430,761   |   |
| 2010                                          |   |                  | 442,815   |   |
| 2011                                          |   |                  | 302,855   |   |
| Thereafter                                    |   |                  | -         |   |
|                                          |   |                  |      |   |
| Total      minimum obligations                |   | $                     | 1,604,376 |   |

| (      10 ) | Commitments |
|-------------|-------------|

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| (      11 ) | Related party      transactions |
|-------------|---------------------------------|

|   | The      Company has an exclusive option to enter licensing/acquisition of rights      agreements for individual characters, subject to existing third party      rights, within the RIP Awesome Library of RIP Media, Inc., a related      entity in which Scott Rosenberg is a majority shareholder. The Company did      not exercise this right during the years ended December 31, 2007      and 2006.  Scott Mitchell Rosenberg also provides production      consulting services to the Company’s customers (production companies)      through Scott Mitchell Rosenberg Productions (another related entity)      wholly owned by Scott Mitchell Rosenberg. At the time the Company enters      into a purchase agreement with a production company, a separate contract      may be entered into between the related entity and the production company.      In addition, consulting services regarding development of characters and      storylines may also be provided to the Company by this related      entity.  Revenue would be paid directly to the related entity by      the production company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                          |   |   | Oustanding             |   |      | Exerciseable                                     |   |
|-------------------------------|--------|--------|------------------------|--------|-----------|--------------------------------------------------|--------|
| Range of Exercise      Prices |   |   | Number      Oustanding |   |      | Weighted Average      Remaining Contractual Life |   |   | Weighted Average      Exercise Price |   |   | Number      Exerciseable |   |   | Weighted Average      Exercise Price |   |
|                          |   |   |                   |   |      |                                             |   |   |   |   |   |   |   |   |   |   |
| Warrants                      |   |   |                   |   |      |                                             |   |   |   |   |   |   |   |   |   |   |
|                          |   |   |                   |   |      |                                             |   |   |   |   |   |   |   |   |   |   |
| $                             | 0.10   |   |                   |   | 2,896,100 |                                             |   |   | 4.34 |   |   | $ | 0.10 |   |   |   | 2,896,100 |   |   | $ | 0.10 |   |
| $                             | 0.10   |   |                   |   | 2,896,100 |                                             |   |   | 4.34 |   |   | $ | 0.10 |   |   |   | 2,896,100 |   |   | $ | 0.10 |   |

----

|                                     |   | Three      months ended March 31, 2008 |
|------------------------------------------|--------|----------------------------------------|
|                                     |   | Shares                                 |   | Weighted Average Exercise Price |
| Outstanding—beginning      of year |   |                                   |  — |   |   | $ | — |   |
| Granted      at fair value               |   |                                   | 22,050 |   |   |   | 0.10 |   |
| Exercised                                |   |                                   |  — |   |   |   | — |   |
| Canceled/forfeited                       |   |                                   | — |   |   |   | — |   |
| Outstanding—end      of quarter    |   |                                   | 22,050 |   |   |   |     0.10 |   |
| Options      exercisable at quarter-end  |   |                                   | 19,906 |   |   | $ | 0.10 |   |

|                                    |   | Options Outstanding |   | Options Exercisable |   |                                           |
|-----------------------------------------|--------|--------------------------|--------|--------------------------|--------|------------------------------------------------|
| Range of Exercise Prices |   |                     |   | Shares                   |   | Weighted Average Exercise Price |   | Weighted Average Remaining Contract Life |   | Aggregate Intrinsic Value |   | Shares |   | Weighted Average Exercise Price |   | Weighted Average Remaining Contract Life |   | Aggregate Intrinsic Value |   |   |
| $0.0-$0.10                              |   |                     | 22,050 |                     |   |                                           | $  0.10 |   |   |   | 2.75 |   |   |   | $882 |   |   |   | 19,906 |   |   |   | $  0.10 |   |   |   | 2.75 |   |   |   | $788 |   |   |

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OPERATIONS

| ·       | discuss      our future expectations;                                                                |
|--------------|------------------------------------------------------------------------------------------------------|
|  · | contain      projections of our future results of operations or of our financial      condition; and |
|  · | state      other "forward-looking"information.                                                       |

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES ANDUSE OF PROCEEDS

| 31.1*  |   | Certification      by Chief Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a)      of the Exchange Act                                                                                   |   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |   |                                                                                                                                                                                                   |   |
| 31.2*  |   | Certification      by Interim Chief Financial Officer, required by Rule 13a-14(a) or Rule      15d-14(a) of the Exchange Act                                                                           |   |
|   |   |                                                                                                                                                                                                   |   |
| 32.1*  |   | Certification      by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b)      of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the      United States Code         |   |
|   |   |                                                                                                                                                                                                   |   |
| 32.2*  |   | Certification      by Interim Chief Financial Officer, required by Rule 13a-14(b) or Rule      15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18      of the United States Code |   |

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|   |   |   | Platinum      Studios, Inc.                                                                        |
|--------|--------|--------|----------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                               |
|   |   |   |                                                                                               |
|   |   |   | By:                                                                                                |  /s/      Scott Mitchell Rosenberg |   |
|   |   |   | Scott      Mitchell Rosenberg                                                                      |
|   |   |   | Chief      Executive Officer                                                                       |
|   |   |   | and      Chairman of the Board                                                                     |
|   |   |   |                                                                                               |
|   |   |   |                                                                                               |
|   |   |   | By:                                                                                                |  /s/      Brian Altounian |   |
|   |   |   | Brian      Altounian                                                                               |
|   |   |   | President,      Chief Operating Officer&      Principal Financial and Accounting Officer  |