**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**







**FORM 10-QSB**









x
            **QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
                ACT
                OF 1934**


**For
      the quarter ended January 31, 2008**


**-OR-**





o
            **TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
                ACT
                OF 1934**


**For
      the transition period
      from:                               to**




**Commission
      File Number 0-14234**








**KINGS
      ROAD ENTERTAINMENT, INC.**


(Exact
      Name of Registrant as Specified in Its Charter)




**DELAWARE**
            
            **95-3587522**(State
                or other jurisdiction of
            
            (I.R.S.
                Employer Identification No.)incorporation
                or organization)**468
                N. Camden Drive**
              **Beverly
                Hills, California**
            
            **90210**(Address
                of principal executive offices)
            
            (Zip
                Code)




**310-278-9975**


(Registrant’s
      telephone number, including area code)






(Former
      name, former address or former fiscal year, if changed since last
      report)





Check
      whether the issuer: (1) filed all reports required to be filed by
      Section 13 or 15(d) of the Exchange Act during the past 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 o No þ





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
      one): Large accelerated filer o Accelerated filer o Non-accelerated filer þ





Indicate
      by check mark whether the registrant is a shell company (as defined in
      Rule 12b-2 of the Exchange) o Yes þ No





The
      number of shares outstanding of the registrant’s common stock, as of January 31,
      2008 was 10,756,493 shares. As of July 31, 2008 the number of shares outstanding
      of the registrant’s common stock was 9,956,493.








**KINGS
      ROAD ENTERTAINMENT, INC.**


**FORM
      10-QSB**


**Quarter
      Ended January 31, 2008**





**TABLE
      OF CONTENTS**





**PAGE****PART
                I - FINANCIAL INFORMATION**Item
                1. Index to Consolidated Financial Statements
            F-1Consolidated
                Balance Sheets as of January 31, 2008 and April 30, 2007
            F-2Consolidated
                Statements of Operations for the Three Months Ended January 31, 2008
                and
                2007
            F-3Consolidated
                Statements of Operations for the Nine Months Ended January 31, 2008
                and
                2007
            F-4Consolidated
                Statements of Cash Flows for the Nine Months Ended January 31, 2008
                and
                2007
            F-5Notes
                to Consolidated Financial Statements as of January 31,
                2008
            F-6 –
                F-11Item
                2. Management’s Discussion and Analysis or Plan of
                Operation
            14Item
                3. Controls and Procedures
            16**PART
                II - OTHER INFORMATION**Item
                1. Legal Proceedings
            17Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            19Item
                3. Defaults Upon Senior Securities
            19Item
                4. Submission of Matters to a Vote of Security Holders
            19Item
                5. Other Information
            19Item
                6. Exhibits
            19**SIGNATURES**
            20







**PART
      I - FINANCIAL INFORMATION**





**Item
      1. Financial Statements**





**KINGS
      ROAD ENTERTAINMENT, INC.**


**INDEX
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(UNAUDITED)**


**Page**Consolidated
                  Balance Sheets as of January 31, 2008 and April 30, 2007
              F-2Consolidated
                  Statements of Operations for the three months ended January 31,
                  2008and
                  2007
              F-3Consolidated
                  Statements of Operation for the nine months ended January 31, 2008and
                  2007
              F-4Consolidated
                  Statements of Cash Flows for the nine months ended January 31,
                  2008and
                  2007
              F-5Notes
                  to Consolidated Financial Statements as of January 31,
                  2008
              F-6
                  to F-11




F-1


**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      BALANCE SHEETS**


**AS
      OF JANUARY 31, 2008 AND APRIL 30, 2007**





January 31, 2008
            
            April 30, 2007(unaudited)
            
            (audited)**ASSETS****Current
                assets:**Cash
                and cash equivalents
            
            $
            375,820
            
            $
            553,648Prepayments
                and other current assets
            
            
            14,190
            
            
            5,190**Total
                current assets**
            
            
            390,010
            
            
            558,838**Other
                assets:**Film
                development costs, net
            
            
            453,526
            
            
            70,037**Total
                other assets**
            
            
            453,526
            
            
            70,037**TOTAL
                ASSETS**
            
            $
            843,536
            
            $
            628,875**LIABILITIES
                AND STOCKHOLDERS’ EQUITY****Current
                liabilities:**Accounts
                payable
            
            $
            39,515
            
            $
            440,409Accrued
                expenses
            
            
            338,827
            
            
            338,231Deferred
                revenue
            
            
            840,366
            
            
            953,601**Total
                current liabilities**
            
            
            1,218,708
            
            
            1,732,241**Stockholders’
                equity:**Common
                stock; 12,000,000 shares authorized at $0.01 par value; 10,756,493
                shares
                issued and outstanding at January 31, 2008 and 5,806,493 at April
                30, 2007
                respectively.
            
            
            107,564
            
            
            58,064Additional
                paid-in capital
            
            
            25,836,085
            
            
            25,204,118Accumulated
                deficit
            
            
            (26,365,548
            )
            
            (25,915,293
            )Net
                Profit (Loss) for Period
            
            
            46,727
            
            
            (450,255
            )**Total
                stockholders’ equity (deficit)**
            
            
            (375,172
            )
            
            (1,103,366
            )**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY**
            
            $
            843,536
            
            $
            628,875





See
      accompanying notes to consolidated financial statements.


F-2


**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**FOR
      THE THREE MONTHS ENDED JANUARY 31, 2008 and 2007**


**(Unaudited)**





Three months ended January 31,2008
            
            2007**REVENUES**Feature
                films
            
            $
            106,182
            
            $
            48,184**TOTAL
                REVENUE**
            
            
            106,182
            
            
            48,184**OPERATING
                EXPENSES:**General
                and administrative
            
            
            89,867
            
            
            228,096**Total
                operating expenses**
            
            
            89,867
            
            
            228,096**INCOME
                (LOSS) FROM OPERATIONS**
            
            
            16,315
            
            
            (179,912
            )**OTHER
                INCOME:**Interest
                income
            
            
            3,322
            
            
            5,798Interest
                expense
            
            
            0
            
            
            0**Total
                other income**
            
            
            3,322
            
            
            5,798**INCOME
                (LOSS) BEFORE INCOME TAXES**
            
            
            19,637
            
            
            (174,114
            )**PROVISION
                FOR INCOME TAXES**
            
            
            0
            
            
            0**NET
                INCOME (LOSS)**
            
            $
            19,637
            
            $
            (174,114
            )Net
                income (loss) per share – Basic
            
            $
            0.00
            
            $
            (0.02
            )Basic
                weighted average number of shares outstanding during the
                period
            
            
            10,389,645
            
            
            7,157,740





See
      accompanying notes to consolidated financial statements.


F-3


**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**FOR
      THE NINE MONTHS ENDED JANUARY 31, 2008 and 2007**


**(Unaudited)**





Nine months ended January 31,2008
            
            2007**REVENUES**Feature
                films
            
            $
            349,541
            
            $
            165,557**TOTAL
                REVENUE**
            
            
            349,541
            
            
            165,557**OPERATING
                EXPENSES:**General
                and administrative
            
            
            309,292
            
            
            609,214**Total
                operating expenses**
            
            
            309,292
            
            
            609,214**INCOME
                (LOSS) FROM OPERATIONS**
            
            
            40,249
            
            
            (443,657
            )**OTHER
                INCOME:**Interest
                income
            
            
            6,478
            
            
            19,750Interest
                expense
            
            
            0
            
            
            0**Total
                other income**
            
            
            6,478
            
            
            19,750**INCOME
                (LOSS) BEFORE INCOME TAXES**
            
            
            46,727
            
            
            (423,907
            )**PROVISION
                FOR INCOME TAXES**
            
            
            0
            
            
            0**NET
                INCOME (LOSS)**
            
            $
            46,727
            
            $
            (423,907
            )Net
                income (loss) per share – Basic
            
            $
            0.01
            
            $
            (0.06
            )Basic
                weighted average number of shares outstanding during the
                period
            
            
            7,383,486
            
            
            7,080,204





See
      accompanying notes to consolidated financial statements.


F-4


**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**FOR
      THE NINE MONTHS ENDED JANUARY 31, 2008 and 2007**


**(Unaudited)**





Nine months ended January 31,2008
            
            2007**CASH
                FLOWS FROM OPERATING ACTIVITIES:**Income
                (loss) from continuing operations
            
            $
            46,727
            
            $
            (423,907
            )Adjustmentsto
                reconcile income (loss) from continuing operations to net cash (used
                in)
                provided by operating activities:Common
                stock issued for services
            
            
            47,000
            
            
            32,000Change
                in operating assets and liabilities:Accounts
                receivable, trade
            
            
            0
            
            
            113,699Prepayments
                and other current assets
            
            
            (9,000
            )
            
            (5,190
            )Film
                Development Costs
            
            
            (383,489
            )
            
            0Accounts
                payable
            
            
            (400,894
            )
            
            41,140Accrued
                expenses
            
            
            596
            
            
            21,745Deferred
                revenue
            
            
            (113,235
            )
            
            (58,319
            )**NET
                CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES**
            
            
            (812,295
            )
            
            (278,832
            )**CASH
                FLOWS FROM INVESTING ACTIVITIES:**Common
                Stock Exchanged for Film Projects
            
            
            325,000
            
            
            0(Increase)
                decrease in Subsidiary Investment
            
            
            (7,533
            )
            
            0**NET
                CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES**
            
            
            317,467
            
            
            0**CASH
                FLOWS FROM FINANCING ACTIVITIES:**Common
                Stock Issued for Cash (Net)
            
            
            317,000
            
            
            0**NET
                CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES**
            
            
            317,000
            
            
            0**NET
                CHANGE IN CASH AND CASH EQUIVALENTS**
            
            
            (177,828
            )
            
            (278,832
            )**CASH
                AND CASH EQUIVALENTS, BEGINNING OF PERIOD**
            
            
            553,648
            
            
            735,825**CASH
                AND CASH EQUIVALENTS, END OF PERIOD**
            
            $
            375,820
            
            $
            456,993





See
      accompanying notes to consolidated financial statements.


F-5


**KINGS
      ROAD ENTERTAINMENT, INC.**


**Notes
      to Consolidated Financial Statements**


**As
      of January 31, 2008**





**NOTE
      1 – NATURE OF OPERATIONS**





Kings
      Road Entertainment, Inc, and its three wholly-owned subsidiaries (the "Company"
      or "Registrant"), have been engaged primarily in the development, financing
      and
      production of motion pictures for subsequent distribution in theaters, to pay,
      network and syndicated television, on home video, and in other ancillary media
      in the United States (the "domestic market") and all other countries and
      territories of the world (the "international market"). Kings Road Entertainment,
      Inc., incorporated in Delaware in 1980, began active operations in January
      1983
      and released its first motion picture in 1984. There have been 17 additional
      pictures theatrically released in the domestic market, and seven pictures have
      been released directly to the domestic home video or pay television
      market.




**NOTE
      2 - SIGNIFICANT ACCOUNTING POLICIES**





a.
      Basis
      of Presentation





The
      accompanying unaudited consolidated financial statements have been prepared
      in
      accordance with accounting principles generally accepted in the United States
      of
      America for interim financial statements. Accordingly, they do not include
      all
      of the information and disclosures required for annual financial statements.
      These financial statements should be read in conjunction with the financial
      statements and related footnotes for the year ended April 30, 2007, included
      in
      the Kings Road Entertainment, Inc. annual report on Form 10-KSB for that period.





In
      the
      opinion of the Company's management, all adjustments (consisting of normal
      recurring accruals) necessary to present fairly the Company's financial position
      at January 31, 2008, the results of operations for the three and nine month
      periods ended January 31, 2008 and cash flows for the nine month period ended
      January 31, 2008 have been included. The results of operations for the three
      and
      nine month periods ended January 31, 2008, are not necessarily indicative of
      the
      results to be expected for the full fiscal year. All inter-company items and
      transactions have been eliminated in consolidation.





b.
      Accounting Method





The
      Company's consolidated financial statements are prepared using the accrual
      method of accounting. The Company has elected an April 30 year-end.





c.
      Principals of Consolidation





The
      consolidated financial statements include the accounts of the Company and of
      its
      wholly-owned subsidiaries. As of January 31, 2008, we had three wholly-owned
      subsidiaries: Ticker, Inc., (a California corporation), was inactive during
      the
      three month period ending January 31, 2008. The Big Easy II Film, LLC (a
      California limited liability corporation), was also inactive during the three
      month period ending January 31, 2008. On December 5, 2007, the Company
      incorporated and commenced operations in Kings Road Entertainment Europe GmbH,
      Germany, to facilitate international co-productions. The consolidated financial
      statements include those of Kings Road Entertainment, Inc. and its subsidiaries.
      All material inter-company balances and transactions have been eliminated on
      consolidation.


F-6


d.
      Use of
      Estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principles 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 the financial statements and
      the reported amounts of revenues and expenses during the reporting period.
      Actual results could differ from those estimates.





e.
      Newly
      Issued Accounting Pronouncements




In
      December 2007, the FASB issued SFAS No. 141-R, “Business Combinations”
(revised 2007) (SFAS 141-R). This Statement provides greater consistency in
      the
      accounting and financial reporting of business combinations. It requires the
      acquiring entity in a business combination to recognize all assets acquired
      and
      liabilities assumed in the transaction, establishes the acquisition-date fair
      value as the measurement objective for all assets acquired and liabilities
      assumed, and requires the acquirer to disclose the nature and financial effect
      of the business combination. SFAS 141-R is effective for fiscal years beginning
      after December 15, 2008, or January 1, 2009 for the Company. The
      Company does not anticipate that adoption of this standard will have a material
      effect on its financial statements.




In
      December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
      Consolidated Financial Statements” (SFAS 160). This Statement amends Accounting
      Research Bulletin No. 51, “Consolidated Financial Statements,” to establish
      accounting and reporting standards for the noncontrolling interest in a
      subsidiary and for the deconsolidation of a subsidiary. SFAS 160 is effective
      for fiscal years beginning after December 15, 2008, or January 1, 2009
      for the Company. The Company does not anticipate that adoption of this standard
      will have a material effect on its financial statements.




In
      November of 2007 the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities” (SFAS 159). Under
      this standard, the Company may elect to report financial instruments and
      certain other items at fair value on a contract-by-contract basis with changes
      in value reported in earnings. This election is irrevocable. SFAS 159 provides
      an opportunity to mitigate volatility in reported earnings that is caused by
      measuring hedged assets and liabilities that were previously required to use
      a different accounting method than On February 15, 2007, the FASB issued
      SFAS No. 159, “The Fair Value Option for Financial Assets and the related
      hedging contracts when the complex provisions of SFAS 133 hedge accounting
      are
      not met. SFAS 159 is effective for years beginning after November 15, 2007.
      Early adoption within 120 days of the beginning of the Company’s 2007 fiscal
      year is permissible, provided the Company has not yet issued interim financial
      statements for 2007 and has adopted SFAS 157. The Company does not
      anticipate that adoption of this standard will have a material effect on its
      financial statements.




In
      September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”
(SFAS 157). SFAS 157 provides enhanced guidance for using fair value to measure
      assets and liabilities. It does not require any new fair value measurements,
      but
      does require expanded disclosures to provide information about the extent to
      which fair value is used to measure assets and liabilities, the methods and
      assumptions used to measure fair value, and the effect of fair value measures
      on
      earnings. In February 2008, the FASB issued FASB Staff Position FAS 157-2,
      “Effective Date of FASB Statement No. 157” (the FSP). The FSP delayed, for
      one year, the effective date of SFAS 157 for all nonfinancial assets and
      liabilities, except those that are recognized or disclosed in the financial
      statements on at least an annual basis. This statement is effective for the
      Company beginning January 1, 2008. The deferred provisions of SFAS 157 will
      be effective for the Company’s fiscal year 2009. The Company is currently
      evaluating the impact, if any, of the entirety of SFAS 157 on its financial
      position and results of operation.


F-7


f.
      Earnings (Net Loss) Per Share




In
      accordance with FASB Statement No. 128, Earnings Per Share, we calculate
      basic net loss per share using the weighted average number of common shares
      outstanding during the periods presented. We do not have any potentially
      dilutive common stock equivalents, such as options or warrants and we do not
      have any preferred shares.




**NOTE
      3 – CURRENT ASSETS**





a.
      Cash
      and Cash Equivalents




Cash
      equivalents consist of cash on hand and cash due from banks. For purposes of
      the
      statements of cash flows, the Company considers all highly-liquid debt
      instruments with original maturities of three months or less to be cash
      equivalents. The Company maintains its cash balances at financial institutions
      that are federally insured. However, at times, these balances could exceed
      federally insured limits.





b.
      Concentration of Credit Risk





The
      Company licenses various rights in its films to distributors throughout the
      world. Generally, payment is received in full or in part prior to the Company's
      delivery of the film to the applicable distributor. Once calculated royalties
      from actual sales have exceeded such an advance, the Company receives royalty
      income at the end of a specific reporting period (usually three, six or twelve
      months) based on actual sales from the preceding reporting period. As of January
      31, 2008, the Company had no accounts receivable.





**NOTE
      4 – FIXED & OTHER ASSETS**





a.
      Fixed
      Assets





Fixed
      assets of the Company at January 31, 2008, consisted of various items of office
      equipment with a historical cost of $5,993 and a $0 book value. All of these
      items were fully depreciated at January 31, 2008.





b.
      Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of





The
      Company has adopted the provisions of SFAS No. 121, “Accounting for the
      Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of” and
      SFAS No. 142 "Goodwill and Other Intangible Assets." These statements require
      that long-lived assets and certain identifiable intangibles be 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 future net cash flows expected to be generated by the asset. If such assets
      are considered to be impaired, the impairment to be recognized is measured
      by
      the amount by which the carrying amounts of the assets exceed their respective
      fair values. Assets to be disposed of are reported at the lower of the carrying
      amount of fair value less the costs to sell.





c.
      Film
      Development Costs





Film
      development costs are costs incurred for movie projects not yet in production.
      Film development costs, including any related interest and overhead, are
      capitalized as incurred. Profit participations and residuals, if any, are
      accrued in the proportion that revenue for a period bears to the estimated
      future revenues. Costs are amortized using the individual film forecast method
      set forth in FASB Statement No. 53 ("SFAS 53"), which bases the costs on the
      ratio of revenue earned in the current period to the Company's estimate of
      total
      revenues to be realized. Management periodically reviews its estimates on a
      film-by-film basis and, when unamortized costs exceed net realizable value
      for a
      film, that film's unamortized costs are written down to net realizable
      value.


F-8


At
      January 31, 2008, film development costs totaled $453,526, which was net after
      an allowance of $30,000. During the three month period ended January 31, 2008,
      no film development costs were determined to be impaired.





**NOTE
      5 – DEFERRED REVENUE**





As
      of
      January 31, 2008, the Company has deferred revenue totaling $840,366. The
      Company is following the guidelines of SOP 00-02 for film production and
      distribution.




**NOTE
      6 - COMMITMENTS AND CONTINGENCIES**





a.
      Rent





The
      Company rents its registered office space at 468 N. Camden Drive, Beverly Hills
      and an additional office space in Santa Monica, California. The Company also
      rents flexible storage space for its archives. Rent expense for the Company's
      offices and archive storage space was $10,793 and $8,355 during the three months
      ended January 31, 2008 and 2007, respectively. All rental agreements may be
      terminated upon one month’s notice.





b.
      Contingent Losses & Litigation





We
      have
      previously disclosed our material litigation and regulatory issues in our Annual
      Report on Form 10-KSB, for the period ended April 30, 2007, and in our
      other filings with the Securities and Exchange Commission pursuant to the
      Securities Exchange Act of 1934, as amended. At January 31, 2008, we were
      involved with various legal matters, including litigation with former officers,
      Directors, and related parties. Although the ultimate resolution of certain
      matters cannot be determined at this time, we do not believe that such matters,
      individually or in the aggregate, will have a material adverse effect on our
      future consolidated results of operations, cash flows or financial condition.





Legal
      fees associated with litigation are recorded in the period in which they occur.
      The company has not created, and does not intend to create any reserves for
      contingent losses resulting from an unfavorable outcome from any of these legal
      matters.





c.
      Other
      Commitments and Contingencies





In
      the
      ordinary course of business, the Company may become involved in matters of
      dispute which in the aggregate are not believed by management to be material
      to
      its financial position or results of operations.





**NOTE
      7 – RECOGNITION OF REVENUES**





Revenue
      from the sale or licensing of films is recognized in accordance with Statement
      of Position 00-2 “Accounting by Producers or Distributors of Films” (“SOP
      00-2”). Revenue from the theatrical release of feature films is recognized at
      the time of exhibition based on the Company’s participation in box office
      receipts. Revenue from the sale of DVDs rights under licensing agreements is
      recognized on the later of receipt by the customer or “street date” (when it is
      available for sale by the customer). Under revenue sharing arrangements, rental
      revenue is recognized when the Company is entitled to receipts and such receipts
      are determinable. Revenues from television licensing are recognized when the
      feature film or television program is available to the licensee for telecast.
      For television licenses that include separate availability “windows” during the
      license period, revenue is allocated over the “windows.” Revenue from sales to
      international territories are recognized when access to the feature film or
      television program has been granted or delivery has occurred, as required under
      the sales contract, and the right to exploit the feature film has commenced.
      Cash payments received are recorded as deferred revenue until all the conditions
      of revenue recognition have been met.


F-9




The
      Company’s revenues are derived primarily from distribution agreements in the US
      domestic market place and are amortized during the reporting period for which
      the revenue is applicable. Revenues derived from purchase option agreements
      are
      amortized over the period of the option granted. Revenues from theatrical
      exhibition are recognized on the dates of exhibition. Revenues from
      international, home video, video-on-demand, television and pay-television
      license agreements are recognized when the license period begins and the film
      is
      available for exhibition or exploitation pursuant to the terms of the applicable
      license agreement. Once complete, a typical film will generally be made
      available for licensing as follows:





Marketplace
            
            Months After
              Initial Release
            
            Approximate
              Release PeriodDomestic
                theatrical
            
            
            
            0-3
                monthsAll
                international markets
            
            
            
            1-12
                yearsDomestic
                home video/DVD/ Video on Demand
            
            3-6
                months
            
            3-12
                monthsDomestic
                cable/pay television
            
            12-18
                months
            
            18
                monthsDomestic
                syndicated/free television
            
            24-48
                months
            
            1-n
                years





These
      periods are dynamic and as new media, distribution platforms and consumer
      behavior dictate, they will continue to change.





**NOTE
      8 - COMMON STOCK**





At
      January 31, 2008, the Company had 12,000,000 authorized shares of common stock,
      of which 10,756,493 shares were issued and outstanding. Subsequent to this
      report, on July 15, 2008, the Company, pursuant to lawsuit settlement agreements
      with former President and officer Mr. H. Martin DeFrank and shareholder Mr.
      John
      M. Burnley, repurchased 500,000 shares of its common stock from Mr. DeFrank
      and
      300,000 shares of its common stock from Mr. Burnley. The purchase price of
      Mr.
      DeFrank’s Shares was $60,000 and the purchase price of the Mr. Burnley’s shares
      was $24,000.





**N0TE
      9 – DEPRECIATION AND AMORTIZATION**





Depreciation
      of fixed assets is computed by the straight-line method over the estimated
      useful lives of the assets ranging from three to five years. Leasehold
      improvements are amortized over the useful life of the improvements or the
      term
      of the applicable lease, whichever is less.





**NOTE
      10 - GOING CONCERN**





The
      Company's consolidated financial statements are prepared using accounting
      principles generally accepted in the United States of America applicable to
      a
      going concern which contemplates the realization of assets and liquidation
      of
      liabilities in the normal course of business. However at January 31, 2008,
      the
      Company has sustained recent losses from operations, has a deficit in working
      capital of $828,698, and has an accumulated deficit of approximately
      $26,318,800. These conditions raise substantial doubt about the Company's
      ability to continue as a going concern. The Company has discontinued certain
      operations that historically produced negative cash flow and plans to raise
      capital through equity-based investment instruments, which will provide funding
      for the development of future projects and operating expenses.


F-10


**NOTE
      11 - SUBSEQUENT EVENTS**





a.
      Option/Purchase Agreement





On
      October 6, 2006, New Line Cinema paid the Company $90,000 to extend an option
      pertaining to the remake rights to the movie production, All of Me, for an
      additional 18-month period, up to and including April 11, 2008. The option
      period was further extended to July 21, 2008, pursuant to the Writers’ Guild
      strike of 2007 and 2008. Subsequent to the period covered by this report, on
      July 21, 2008, the option expired without New Line exercising the option.
      Pursuant to the option agreement, all rights in this title have reverted to
      the
      Company.





b.
      Litigation with Director and Former Officer





On
      June
      13, 2007, the Company filed a complaint in the Superior Court of the State
      of
      California, County of Los Angeles, against Director, H. Martin DeFrank, and
      Sloane Squared LTC, (“Sloane”), alleging breach of fiduciary duty, constructive
      fraud, usurping corporate opportunity, conversion/civil theft, restitution,
      interference with business, breach of contract and unfair competition/false
      representation of association. The foregoing event was reported in an 8-K filed
      on July 10, 2007.





On
      August
      15, 2007, Mr. DeFrank filed a complaint against the Company and three Directors
      alleging wrongful termination, negligence and violation of the Fair Employment
      and Housing Act. This complaint was amended on October 12, 2007.





On
      November 13, 2007, the Company and the three named Directors filed a demurrer
      against this amended complaint. On January 7, 2008, the court issued a tentative
      ruling upholding the individual Directors’ demurrer on all counts without leave
      to amend. On February 14, 2008, the court dismissed Mr. DeFrank’s complaint in
      its entirety.





Subsequent
      to this report, on July 15, 2008, the Company settled the lawsuits with former
      President and Director Mr. DeFrank. The foregoing event was filed in an 8-K
      on
      July 18, 2008.





c.
      Writing Services Agreement





Subsequent
      to the period covered by this report, on February 19, 2008, the Company entered
      a writing agreement with a Writers Guild of America writer in connection with
      a
      currently untitled feature length motion picture remake/sequel of one of the
      films in the Company’s library. This agreement foresees payments of
      approximately $100,000 in total over the course of the agreement. An initial
      payment of $33,333 was made by the Company on February 20,
      2008.


F-11


**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATION**





The
      following review concerns the periods ended January 31, 2008 and January 31,
      2007, which should be read in conjunction with the financial statements and
      notes thereto presented in the Form 10-QSB and the Form 10-KSB for the fiscal
      year ending April 30, 2007.





*Forward
      Looking Statements*





*The
      information in this discussion contains forward-looking statements within the
      meaning of Section 27A of the Securities Act of 1933, as amended, and Section
      21E of the Securities Exchange Act of 1934, as amended. These forward-looking
      statements involve risks and uncertainties, including statements regarding
      our
      capital needs, business strategy and expectations. Any statements contained
      herein that are not statements of historical facts may be deemed to be
      forward-looking statements. In some cases, you can identify forward-looking
      statements by terminology such as "may", "will", "should", "expect", "plan",
      "intend", "anticipate", "believe", “estimate", "predict", "potential" or
      "continue", the negative of such terms or other comparable terminology. Actual
      events or results may differ materially. We disclaim any obligation to publicly
      update these statements, or disclose any difference between its actual results
      and those reflected in these statements. The information constitutes
      forward-looking statements within the meaning of the Private Securities
      Litigation Reform Act of 1995.*





The
      following discussion should be read in conjunction with the Company's financial
      statements and related notes. Certain matters discussed herein may contain
      forward-looking statements that are subject to risks and uncertainties. Such
      risks and uncertainties include, but are not limited to, the following:


-
      the
      volatile and competitive nature of the film industry,


-
      the
      uncertainties surrounding the rapidly evolving markets in which the Company
      competes,


-
      the
      uncertainties surrounding technological change of the industry,


-
      the
      Company's dependence on its intellectual property rights,


-
      the
      success of marketing efforts by third parties,


-
      the
      changing demands of customers and


-
      the
      arrangements with present and future customers and third parties.





Should
      one or more of these risks or uncertainties materialize or should any of the
      underlying assumptions prove incorrect, actual results of current and future
      operations may vary materially from those anticipated.




**Recent
      Developments**





Subsequent
      to the fiscal year ended April 30, 1996, the Company has produced no new films
      and has derived its film revenues almost exclusively from the exploitation
      of
      films produced in prior years. The Company continues to fund and develop motion
      picture projects, with the intention of either producing the motion picture,
      establishing a partnership or joint venture with another film production company
      to develop and/or produce the project or an outright sale of the project.





On
      November 7, 2007, the Company sold Four Million Four Hundred Fifty Thousand
      (4,450,000) shares of the Company’s Common Stock to West Coast Pictures, LLP in
      exchange for Three Hundred Twenty-Five Thousand Dollars ($325,000) cash and
      five
      (5) film assets which were also valued at Three Hundred Twenty-Five Thousand
      Dollars ($325,000). Management intends to invest further in the development
      of
      film projects including these five film assets.





On
      December 5, 2007, the Board of Directors resolved to set up a European
      subsidiary to identify, develop and produce international co-productions. The
      Board also resolved to finance the subsidiary with interest bearing subordinated
      loans. In accordance with the resolution, Kings Road Entertainment Europe GmbH
      was established on December 5, 2007. The foregoing event was reported in an
      8-K
      filed on December 27, 2007.


14


**Results
      of Operations**





**The
      Three Months Ended January 31, 2008 vs. the Three Months Ended January 31,
      2007**





For
      the
      quarter ended January 31, 2008, feature film revenues were $106,182 as compared
      to $48,184 for the quarter ended January 31, 2007. The increase of $57,998
      results primarily from increased revenue from distribution of the Company's
      feature film library.





Costs
      and
      expenses amounted to $89,867 for the quarter ended January 31, 2008 as compared
      to $228,096 during the quarter ended January 31, 2007. This decrease of $138,229
      is primarily due to significant decreases in executive and administrative
      compensation as well as legal fees.





The
      Company had a net profit of $19,637 for the quarter ended January 31, 2008
      as
      compared to the net loss of $174,114 for the quarter ended January 31, 2007.
      This increase in net profit of $193,751 results primarily from an increase
      in
      revenues and significant decreases in executive and administrative compensation
      as well as legal fees.





**The
      Nine Months Ended January 31, 2008 vs. the Nine Months Ended January 31, 2007**





For
      the
      nine month period ended January 31, 2008, feature film revenues were $349,541
      as
      compared to $165,557 for the nine month period ended January 31, 2007. The
      increase of $183,984 results primarily from increased revenue from distribution
      of the Company's feature film library.





Costs
      and
      expenses decreased to $309,292 for the nine months ended January 31, 2008 as
      compared to $609,214 during the nine months ended January 31, 2007. This
      decrease of $299,922 is primarily due to a decrease in professional fees and
      executive and administrative compensation.





The
      Company had a net profit of $46,727 for the nine month period ended January
      31,
      2008 as compared to net loss of $423,907 for the comparable period ended January
      31, 2007. This increased net profit of $470,634 results primarily from increased
      film revenues and decreases in professional fees, executive and administrative
      compensation.





**Liquidity
      and Capital Resources**





The
      Company's principal source of working capital during the three and nine month
      periods ended January 31, 2008 was motion picture royalty income. The Company
      does not currently have sufficient working capital to fund its operations.
      If
      the Company fails to raise additional capital, increase revenues, or sell
      certain assets, the Company will, in all likelihood, be forced to significantly
      reduce its operations or liquidate.





For
      the
      nine months ended January 31, 2008, the Company's net cash flow used in
      operating activities was $812,295 compared to net cash used in operating
      activities of $278,832 during the period ended January 31, 2007. At January
      31,
      2008, the Company had cash of $375,820 as compared to $456,993 at January 31,
      2007.





**Future
      Commitments**





The
      Company does not have, nor is it aware of, any other material future
      commitments.


15


**ITEM
      3. CONTROLS AND PROCEDURES.**




We
      have
      adopted and maintain disclosure controls and procedures (as such term is defined
      in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934,
      as
      amended (the “Exchange Act”) that are designed to ensure that information
      required to be disclosed in our reports under the Exchange Act, is recorded,
      processed, summarized and reported within the time periods required under the
      SEC’s rules and forms and that the information is gathered and communicated to
      our management, including our President (Principal Executive Officer) and
      Chief Financial Officer (Principal Financial Officer), as appropriate, to allow
      for timely decisions regarding required disclosure.




As
      required by SEC Rule 15d-15(b), our Principal Executive Officer and Chief
      Financial Officer carried out an evaluation under the supervision and with
      the
      participation of our management, of the effectiveness of the design and
      operation of our disclosure controls and procedures pursuant to Exchange Act
      Rule 15d-14 as of the end of the period covered by this report. Based on the
      foregoing evaluation, they have concluded that as of January 31, 2008, our
      disclosure controls and procedures are not effective in view of our delinquent
      filings at such date. As of January 31, 2008, we were delinquent in filing
      our
      periodic reports since April 2004. The Company had been involved in litigation
      with former officers and Directors and we did not have adequate financial
      resources to engage our auditor and ensure the timely filing of our periodic
      reports. Since then, we have resolved all of the legal matters, changed our
      management, and engaged an auditor to file all of our delinquent periodic
      reports.




This
      quarterly report does not include an attestation report of the Company’s
      registered public accounting firm regarding internal control over financial
      reporting. Management's report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the
      Securities and Exchange Commission that permit the
      Company to
      provide only management's report in this quarterly report.




Our
      management is responsible for establishing and maintaining adequate internal
      control over financial reporting for the company in accordance with as defined
      in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control
      over financial reporting is designed 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. Our internal control over financial reporting includes
      those policies and procedures that:




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





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





(iii)
            provide
                reasonable assurance regarding prevention or timely detection of
                unauthorized acquisition, use or disposition of our assets that could
                have
                a material affect on our financial
                statements.




There
      was
      no change in our internal control over financial reporting that occurred during
      the fiscal quarter ended January 31, 2008, that has materially affected, or
      is
      reasonably likely to materially affect, our internal control over financial
      reporting.


16


**PART
      II - OTHER INFORMATION**





**ITEM
      1.**  **LEGAL
      PROCEEDINGS**





Shareholder
      Complaint against the Company and Derivative Suit





On
      December 16, 2006, shareholder John M. Burnley, filed a complaint in the State
      of Delaware to compel an Annual Meeting of shareholders. The complaint alleged
      that certain members of the Board of Directors were acting in a manner that
      may
      be for their own interests and detrimental to that of the shareholders at large.
      Legal counsel for the Company has reviewed the case and deemed that the
      necessary steps have not been completed to effectuate this petition and likewise
      deemed the matter to be inactive at that time. The foregoing event was reported
      in an 8-K filed on April 23, 2007





On
      April
      18, 2007, shareholder Burnley filed a complaint in the U.S. District Court
      of
      California for and on behalf of the Shareholders of Kings Road Entertainment,
      Inc. The complaint brought a derivative suit against four Directors of the
      Company, alleging that they had breached their fiduciary duties to the Company
      and claiming compensatory damages in the amount of $7,500,000. Subsequent to
      this report, the case was dismissed without prejudice pursuant to local rule
      7-9
      on June 12, 2007. The foregoing events were reported in an 8-K filed on June
      27,
      2007





On
      July
      24, 2007, shareholder Burnley, in the right and for the benefit of Kings Road
      Entertainment Inc., re-filed the above derivative suit in the Los Angeles
      Superior Court (against four Directors of the Company as well as the Company
      as
      a nominal defendant). The complaint alleges that the named Directors breached
      their fiduciary duties to the Company in conspiring to sell a majority interest
      in the Company without the benefit of an evaluation of the assets of the Company
      being performed and at a price considered by Plaintiff to be unreasonable and
      detrimental to the company and its shareholders, in that the price received
      for
      the majority interest was far below certain rival offers existing at the time
      of
      the transaction and claiming compensatory damages in the amount of $7,500,000.





On
      September 28, 2007, the Company filed a demurrer on the grounds that the
      Plaintiff failed to set forth facts sufficient to state a cause of action
      against Defendants or disprove that the Directors acted in valid exercise of
      their business judgment according to Delaware Law. Subsequent to this report,
      on
      January 4,  2008,
      the
      Plaintiff dismissed the case without prejudice.





Subsequent
      to this report, on July 15, 2008, the Company settled the lawsuits with
      shareholder Mr. John M. Burnley. (See “Settlement of DeFrank and Shareholder
      Burnley Lawsuits”). The foregoing event was filed in an 8-K on July 18,
      2008.





Litigation
      with Director and Former Officer





On
      June
      13, 2007, the Company filed a lawsuit against Director, H. Martin DeFrank,
      and
      Sloan Squared, LTC, (“Sloan”), alleging, amongst others, breach of fiduciary
      duty, constructive fraud, usurping corporate opportunity, and conversion. The
      foregoing event was reported in an 8-K filed on July 10, 2007.





On
      August
      15, 2007, Mr. DeFrank filed a complaint against the Company and three Directors
      alleging wrongful termination, negligence and violation of the Fair Employment
      and Housing Act. This complaint was amended on October 12, 2007.





On
      November 13, 2007, the Company and the three named Directors filed a demurrer
      against this amended complaint. On January 7, 2008, the court issued a tentative
      ruling upholding the individual Directors’ demurrer on all counts without leave
      to amend. Subsequent to this report, on February 14, 2008, the court dismissed
      Mr. DeFrank’s complaint in its entirety.


17


Subsequent
      to this report, on July 15, 2008, the Company settled the lawsuits with former
      President and Director DeFrank. (See “Settlement of DeFrank and Shareholder
      Burnley Lawsuits”).The foregoing event was filed in an 8-K on July 18,
      2008.





Settlement
      of DeFrank and Shareholder Burnley Lawsuits





Subsequent
      to this report, on July 15, 2008, the Company settled the lawsuits with its
      former President and officer Mr. H. Martin DeFrank and shareholder Mr. John
      M.
      Burnley by repurchasing 500,000 shares of its common stock from Mr. DeFrank
      and
      300,000 shares of its common stock from Mr. Burnley. The purchase price of
      Mr.
      DeFrank’s Shares was $60,000 and the purchase price of the Mr. Burnley’s shares
      was $24,000.





The
      Company repurchased these as part of a settlement between the Company, its
      President Mr. Holmes, Mr. DeFrank, Sloane Squared Ltd., an entity purportedly
      owned or controlled by Mr. DeFrank and Mr. John Burnley. In addition to the
      Company’s repurchase of Mr. DeFrank’s shares and Mr. Burnley’s shares, the
      settlement contemplates (i) the dismissal with prejudice by the Company of
      the
      complaint filed by the Company in the matter of King’s
      Road Entertainment, Inc. vs. H. Martin DeFrank, Sloane Squared Ltd., et. al. ;
      (ii)
      the dismissal with prejudice by the Company and Mr. Holmes of the complaint
      filed by the Company, Mr. Holmes and Mr. George Moseman, a former officer and
      Director of the Company in the matter of King’s
      Road Entertainment, Inc. v. H. Martin DeFrank, John Burnley, et al. ;
      (iii) the dismissal with prejudice by Mr. DeFrank of the cross-complaint
      filed against the Company, Holmes and Brad Hoffman in the matter of DeFrank
      vs. King’s Road Entertainment, Inc. and Certain Directors and
      the
      dismissal by Mr. DeFrank without prejudice of the cross-complaint filed against
      Mr. Moseman in such matter; (iv) the dismissal with prejudice by Mr. Burnley
      of
      his complaint against the Company, Mr. Holmes and all other parties other than
      Mr. Moseman in the matter of John
      Burnley vs. King’s Road Entertainment, Inc., George Moseman and Phil Holmes, et.
      al .
      and the
      dismissal by Mr. Burnley of his complaint in such matter against Mr. Moseman
      without prejudice; (v) the release by the Company and Mr. Holmes of any
      claims (other than any claims created by the settlement) against Mr. DeFrank,
      Sloane Squared Ltd, Mr. Burnley and their respective affiliates; (vi) the
      release by Mr. DeFrank, Sloane Squared Ltd., Mr. Burnley and their respective
      affiliates of any claims (other than any claims created by the settlement)
      against the Company, Mr. Holmes and the Company’s current and former officers,
      Directors and shareholders other than Mr. Moseman; and (vii) Mr. DeFrank and
      Sloane agreeing to pay the Company fifty percent (50%) of all compensation
      and
      proceeds (if any) received by Mr. DeFrank or Sloane under the “All of
      Me”/Producer Agreement, dated April 23, 2004, by and among Sloane Squared Ltd.,
      Mr. DeFrank, Katja Motion Picture Corp., Eclectic Filmworks, Inc. and Mr. Ira
      Posnansky.





In
      addition, as part of the settlement, Mr. DeFrank acknowledged that the common
      law trademark of the name Kings Road Entertainment is owned exclusively by
      the
      Company. Mr. DeFrank further agreed to refrain from any use of the name “Kings
      Road,” “Kings Road Entertainment,” “KREN,” “Kingsroadscreen,” “Kingsroadmedia,”
or any derivations, acronym or words or abbreviations of similar import, in
      any
      way or context, including but not limited to email addresses. Mr. DeFrank also
      agreed to refrain from associating himself with the production of any of Kings
      Road movie assets except for the possible New Line/Katja remake project of
“All
      of Me.”





The
      foregoing event was filed in an 8-K on July 18, 2008.





**Other
      litigation**





As
      of
      January 31, 2008, the Company was not aware of any pending claims or
      assessments, other than as described above or related to the matters described
      above, which may have a material adverse impact on the Company's financial
      position or results of operations.


18


**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS**





On
      November 7, 2007, the Company sold Four Million Four Hundred Fifty Thousand
      (4,450,000) shares of the Company’s Common Stock to West Coast Pictures, LLC.
      for Three Hundred Twenty Five Thousand Dollars ($325,000) and five (5) film
      assets valued at an additional $325,000. In addition, the Company granted WCP
      “piggyback” registration rights with respect to its purchased shares on certain
      future registration statements of the Company, if any. This transaction is
      exempt from registration pursuant to Section 4(2) of the Securities Act of
      1933





**ITEM
      3.**  **DEFAULTS
      UPON SENIOR SECURITIES**





None





**ITEM
      4.**  **SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS**





No
      matters were submitted to security holders for a vote for the quarter ending
      January 31, 2008.





**ITEM
      5.**  **OTHER
      INFORMATION**





None





**ITEM
      6.**  **EXHIBITS**





31.1
            Rule
                13a-14 (a)/15d-14 (a) Certification of President and Principal Executive
                Officer.31.2
            Rule
                13a-14 (a)/15d-14 (a) Certification of Chief Financial
                Officer.32
            Section
                1350 Certifications.


19


**SIGNATURES**





Pursuant
      to the requirements of Section 13 of 15(d) of the Securities and Exchange Act
      of
      1934, the Registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, thereunto duly authorized.





**KINGS
                ROAD ENTERTAINMENT, INC.**(Registrant)Date:
                August 28, 2008
            By:
            /s/
                Philip HolmesPhilip
                Holmes, President and Principal Executive
                Officer


20