U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                   FORM 10-QSB
                  Quarterly Report Under Section 13 or 15(d) of
                       the Securities Exchange Act of 1934



For the Quarterly Period Ended January 31, 2004      Commission File No. 0-14234



                         KINGS ROAD ENTERTAINMENT, INC.
                 (Name of small business issuer in its charter)


         Delaware                                                95-3587522
(State or other jurisdiction                                  (I.R.S. Employer
       of incorporation)                                     Identification No.)


                   447 B Doheny Drive, Beverly Hills, CA 90210
                     (Address of principal executive office)

                    Issuer's telephone number: (310) 278-9975



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   X    NO
                                                               -----    -----

As of July 13, 2004 the registrant had 3,857,765 shares of its common stock
outstanding.


Transitional Small Business Disclosure Format:  YES       NO   X
                                                    -----    -----

<PAGE>

                         KINGS ROAD ENTERTAINMENT, INC.
                              Report on Form 10-QSB
                     For the Quarter Ended January 31, 2004
<TABLE>
<CAPTION>

                                      INDEX
<S>      <C>          <C>                                                                                 <C>
                                                                                                          Page
Part I.  Financial Information

         Item 1.      Financial Statements (unaudited)..................................................   3
                      Consolidated Balance Sheet .......................................................   3
                      Consolidated Statements of Operations ............................................   4
                      Consolidated Statements of Cash Flows.............................................   5
                      Notes to the Consolidated Financial Statements ...................................   6

         Item 2.      Management's Discussion and Analysis or Plan of Operation ........................   8

         Item 3.      Controls and Procedures ..........................................................  10

Part II.     Other Information

         Item 1.      Legal Proceedings ................................................................  10

         Item 2.      Changes in Securities ............................................................  13

         Item 3.      Defaults Upon Senior Securities ..................................................  13

         Item 4.      Submission of Matters to a Vote of Security Holders ..............................  13

         Item 5.      Other Information ................................................................  13

         Item 6. Exhibits and Reports on Form 8-K ......................................................  13
</TABLE>

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements.

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                     ASSETS
                                     ------
                                                                                         JANUARY 31,              APRIL 30,
                                                                                            2004                    2003
                                                                                        -------------           -------------
                                                                                         (Unaudited)
     <S>                                                                                <C>                     <C>

     CURRENT ASSETS
        Cash                                                                            $      72,611           $      50,679
        Accounts receivable                                                                   196,054                 350,345
        Prepaid expenses                                                                        2,222                       -
                                                                                        -------------           -------------
           Total Current Assets
                                                                                              270,887                 401,024
                                                                                        -------------           -------------
        FIXED ASSETS, NET                                                                           -                       -
                                                                                        -------------           -------------
        OTHER ASSETS

        Film development costs, net                                                            69,437                  47,345
                                                                                        -------------           -------------

          Total Other Assets                                                                   69,437                  47,345
                                                                                        -------------           -------------
     TOTAL ASSETS                                                                       $     340,324           $     448,369
                                                                                        =============           =============
                     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                     ---------------------------------------------

     CURRENT LIABILITIES
        Accounts payable                                                                $      96,003           $      99,855
        Accrued expenses                                                                      199,692                 189,002
        Deferred revenue                                                                       71,667                  86,667
        Liabilities from discontinued operations                                                4,000                   4,000
                                                                                        -------------           -------------
        Total Current Liabilities                                                             371,362                 379,524
                                                                                        -------------           -------------
          TOTAL LIABILITIES                                                                   371,362                 379,524
                                                                                        -------------           -------------
     COMMITMENTS AND CONTINGENCIES

     STOCKHOLDERS' EQUITY (DEFICIT)
        Common stock, $.01 par value, 12,000,000 shares authorized,
           3,864,390 shares issued and outstanding                                             38,644                  38,644
        Additional paid-in capital                                                         24,932,655              24,932,655
        Accumulated deficit                                                               (25,002,337)            (24,902,454)
                                                                                        -------------           -------------
          TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                                (31,038)                 68,845
                                                                                        -------------           -------------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                               $     340,324           $     448,369
                                                                                        =============           =============
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       3


<PAGE>

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                        For the Three Months Ended       For the Nine Months Ended
                                                                January 31,                     January 31,
                                                        --------------------------      --------------------------
                                                           2004           2003              2004           2003
                                                        -----------    -----------      -----------    -----------
<S>                                                     <C>            <C>              <C>            <C>
REVENUES
  Feature films                                         $   100,106    $   172,270      $   317,301    $   374,750
                                                        -----------    -----------      -----------    -----------
     Total Revenues                                         100,106        172,270          317,301        374,750
                                                        -----------    -----------      -----------    -----------
COSTS AND EXPENSES

  General and administrative expenses                       179,195        148,283          414,640        419,193
                                                        -----------    -----------      -----------    -----------
     Total Costs and Expenses                               179,195        148,283          414,640        419,193
                                                        -----------    -----------      -----------    -----------
  OPERATING LOSS                                            (79,089)        23,987          (97,339)       (44,443)
                                                        -----------    -----------      -----------    -----------
OTHER INCOME (EXPENSE)
  Other income (expense)                                     (1,303)           793           (2,982)           784
  Interest income                                               168             31              438            121
  Gain on sale of assets                                          -              -                -        100,000
  Gain on sale of subsidiary                                      -              -                -         33,043
                                                        -----------    -----------      -----------    -----------
  Total Other Income                                         (1,135)           824           (2,544)       133,948
                                                        -----------    -----------      -----------    -----------
  INCOME (LOSS) BEFORE
  INCOME TAXES                                              (80,224)        24,811          (99,883)        89,505

INCOME TAXES                                                      -              -                -              -
                                                        -----------    -----------      -----------    -----------
NET INCOME (LOSS)                                       $   (80,224)   $    24,811      $   (99,883)   $   889,505
                                                        ===========    ===========      ===========    ===========
BASIC INCOME (LOSS) PER SHARE                           $    ( 0.02)   $      0.01      $     (0.03)   $      0.02
                                                        ===========    ===========      ===========    ===========
FULLY DILUTED INCOME (LOSS)
PER SHARE                                               $     (0.02)   $      0.01      $     (0.03)   $      0.02
                                                        ===========    ===========      ===========    ===========
  Weighted average number of common
  shares - basic and diluted                              3,864,390      3,864,390        3,864,390      3,848,488
                                                        ===========    ===========      ===========    ===========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       4

<PAGE>

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                For the Nine Months Ended
                                                                                        January 31,
                                                                                --------------------------
                                                                                    2004           2003
                                                                                -----------    -----------
<S>                                                                             <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net Income (Loss)                                                          $   (99,883)   $    89,505
     Adjustments to reconcile Net (Loss) Income to Net Cash
     Provided by (Used in) Operating Activities:
          Depreciation and amortization                                                   -            513
          Common stock issued for services                                                -         28,000
          Gain on sale of assets                                                          -       (100,000)
          Gain on sale of subsidiary                                                      -        (33,043)
     Changes in Assets and Liabilities:
          (Increase) decrease in accounts receivable                                154,291        (82,152)
          Decrease (increase) in prepaid expenses                                    (2,222)             -
          Increase (decrease) in accounts payable                                    (3,852)       (45,500)
          Increase (decrease) in accrued expenses                                    10,690         30,639
          Increase (decrease) in deferred revenue                                   (15,000)        56,467
                                                                                -----------    -----------
NET CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES                                                            44,024        (55,571)
                                                                                -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Proceeds from sale of assets                                                        -        100,000
     Gross additions to film development costs                                      (22,092)        (5,540)
                                                                                -----------    -----------
NET CASH PROVIDED BY (USED IN)
     INVESTING ACTIVITIES                                                           (22,092)        94,460
                                                                                -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:                                                     -              -
                                                                                -----------    -----------
NET INCREASE (DECREASE) IN CASH                                                      21,932         38,889

CASH AT BEGINNING OF PERIOD                                                          50,679         27,925
                                                                                -----------    -----------
CASH AT END OF PERIOD                                                           $    72,611    $    66,814
                                                                                ===========    ===========
SUPPLEMENTAL SCHEDULE OF CASH FLOW ACTIVITIES:

CASH PAID FOR:
   Interest                                                                     $         -    $         -
   Income taxes                                                                 $         -    $         -

SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
   Common stock issued for services                                             $         -    $    28,000
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       5

<PAGE>

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       January 31, 2004 and April 30, 2003

NOTE 1 - 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, 2003
included in the Kings Road Entertainment, Inc. ("Company" or "Registrant")
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, 2004 and the results of its operations and cash flows
for the nine month periods ended January 31, 2004 and 2003, respectively have
been included.

     The results of operations for the nine-month period ended January 31, 2004
are not necessarily indicative of the results to be expected for the full fiscal
year.

     The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 periods. Actual results could differ from those
estimates.

NOTE 2 - SIGNIFICANT EVENTS

     On April 17, 2003, the Company received a formal request by a Shareholders
Action Committee for the Board to investigate a series of Related Party
Transactions, which occurred during the period of November 1998 through April
2001. The Company received an additional letter dated November 10, 2003 from the
Chairman of the Shareholders Action Committee inquiring as to the status of the
investigation. The Board has appointed independent counsel to investigate these
transactions and report to the Board, the Shareholders Action Commttee and the
Shareholders.

     On July 31, 2003, Rigel USA, Inc. filed a complaint in the Superior Court
of California, County of Los Angeles, California against Kings Road
Entertainment and others, including a former officer and director. The complaint
alleges breach of contract regarding the option agreement between Rigel
Entertainment, Inc. and the Company regarding "The Kickboxer" series of
television movies. The complaint sought compensation in an unspecified amount.

                                       6

<PAGE>

NOTE 2 - SIGNIFICANT AND SUBSEQUENT EVENTS (Continued)

On or about June 3, 2004, the Company entered into a Settlement Agreement
with Rigel providing for the settlement of the matter and other possible claims
of the parties. Pursuant to the terms of the Settlement Agreement, Rigel and the
Company have each agreed to release the other from any and all claims arising
out of the lawsuit. Additionally, as part of the settlement the Company and
Rigel executed an Option and License Agreement, whereby in considration of
$10,000 paid by Rigel to the Company, the Company granted Rigel two exclusive
options to use the word "Kickboxer" in the title of up to two live-action
feature length motion pctures. The first option period shall commence on August
1, 2004 and end on October 31, 2006, and shall be exercised by commencement of
prinipal photography and the payment of $90,000 to the Company. The option for
the second motion picture shall commence on November 1, 2005 and end on July 31,
2006, and shall be exercised by the commencement of principal photography and
the payment of $75,000 to the Company. If either or both motion pictures are
produced, the Company shall also be entitled to 10% of the net proceeds.

     In April 2004, the Company became aware that between April 2003 and
December 2003, certain funds intended for the Company and others related to
screenplay royalties totaling $103,517 had been diverted by a former officer and
director of the Company and an associate, both of whom have denied that the
funds were taken without the Company's knowledge. The Company has requested
immediate return of the funds and has been notified that the funds will be
returned during July 2004. The individuals have also denied malfeasance and in
addition to returning the funds, have expressed the intention to undertake other
actions to resolve the situation. Respective legal counsel representing the
Company and the individuals are negotiating a full resolution to this matter.
Repayment of the funds and resolution to related matters has not yet been
reached. The consolidiated financial statements have been restated to reflect
the additional revenue, receivable and payable associated with this matter for
the periods presented.

                                       7

<PAGE>

Item 2   - Management's Discussion and Analysis of Financial Position and
           Results of Operations

Cautionary Forward - Looking Statement

     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, 1995, 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.

Results of Operations

The Three Months Ended January 31, 2004 vs. the Three Months Ended January 31,
2003

     For the quarter ended January 31, 2004, feature film revenues were $100,106
as compared to $172,270 for the quarter ended January 31, 2003. The decrease of
$72,164 results primarily from decreased royalties on the Company's feature film
library.

     Costs and expenses increased to $179,195 for the quarter ended January 31,
2004 as compared to $148,283 during the quarter ended January 31, 2003. This
increase of $30,912 is due to the increase in professional expenses,
specifically legal fees generated by the Rigel lawsuit and the shareholders
action as discussed below.

                                        8

<PAGE>

     The Company had a net loss of $80,224 for the quarter ended January 31,
2004 as compared to net income of $24,811 for the quarter ended January 31,
2003. During the quarters ended January 31, 2004 and 2003, the Company had no
provision for income taxes, due to its net operating loss carry forwards.

The Nine Months Ended January 31, 2004 vs. the Nine Months Ended January 31,
2003

     For the nine months ended January 31, 2004, feature film revenues were
$317,301 as compared to $374,750 for the nine months ended January 31, 2003. The
decrease of $57,449 principally related to decreased domestic and foreign
distribution revenues from feature films in the Company's film library during
the nine months ended January 31, 2004.

     During the nine months ended January 31, 2004, the Company recorded a write
down in development costs of $22,092 that the Company does not expect to
recover. General and administrative costs decreased slightly from $419,193 for
the nine months ended January 31, 2003 to $414,640 for the nine months ended
January 31, 2004.

     Interest income increased to $438 for the nine months ended January 31,
2004 versus $121 for the nine months ended January 31, 2003 reflecting a slight
increase in cash and cash equivalents held during the respective periods.

     During the nine months ended January 31, 2003, the Company recorded income
of $100,000 from the sale of part of its film library and a gain of $33,043 from
the sale of its Animal Town subsidiary, for which there was no comparable gain
during the nine months ended January 31, 2004.

     The Company had a net loss of $99,883 for the nine months ended January 31,
2004 as compared to net income of $89,505 for the nine months ended January 31,
2003. The decrease in net income resulted primarily from income from the sale of
part of the Company's film library and one of its subsidiaries, during the nine
months ended January 31, 2003 as detailed above, for which there was no
comparable gain during the nine months ended January 31, 2004. During the nine
months ended January 31, 2004 and 2003, the Company had no significant provision
for income taxes.

Liquidity and Capital Resources

     The Company's principal source of working capital during the three and nine
month periods ended January 31, 2004 was motion picture royalty income. The
Company does not currently have sufficient capital to fund its operations. If
the Company fails to raise additional capital, increase revenues or sell certain
of its assets, the Company will, in all likelihood, be forced to significantly
reduce its operations or liquidate.

     For the nine months ended January 31, 2004, the Company's net cash flow
provided by operating activities was $44,024 compared to net cash out flow of
$55,571 for the comparable nine month prior year period. At January 31, 2004,
the Company had cash of $72,611 as compared to $68,814 at January 31, 2003.

Future Commitments

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

                                       9

<PAGE>

Forward-Looking Statements

     The foregoing discussion, as well as the other sections of this Quarterly
Report on Form 10-QSB, contains forward-looking statements that reflect the
Company's current views with respect to future events and financial results.
Forward-looking statements usually include the verbs "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "projects," "understands" and other
verbs suggesting uncertainty. The Company reminds shareholders that
forward-looking statements are merely predictions and therefore inherently
subject to uncertainties and other factors which could cause the actual results
to differ materially from the forward-looking statements. Potential factors that
could affect forward-looking statements include, among other things, the
Company's ability to identify, produce and complete film projects that are
successful in the marketplace, to arrange financing, distribution and promotion
for these projects on favorable terms in various markets and to attract and
retain qualified personnel.

Item 3 - Controls and Procedures.

     (a) Evaluation of disclosure controls and procedures.  Our principal
executive officer and principal financial officer have evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rules
13a-14(c) and 15d-14(c) under the Exchange Act), as of a date within 90 days of
the filing date of this Quarterly Report on Form 10-QSB. Based on such
evaluation, they have concluded that as of such date, our disclosure controls
and procedures are effective and designed to ensure that information required to
be disclosed by us in reports that we file or submit under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in applicable SEC rules and forms.

     (b) Changes in internal controls.  There were no significant changes in our
internal controls or in other factors that could significantly affect these
controls subsequent to the date of evaluation by our principal executive officer
and principal financial officer.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Demand for Investigation by Shareholders Action Committee
---------------------------------------------------------

     On April 17, 2003, the Company received a formal request by a Shareholders
Action Committee for the Board to investigate a series of Related Party
Transactions, which occurred during the period of November 1998 through April
2001. The Board appointed independent counsel to investigate these transactions
and report to the Board.

Rigel USA Inc. vs. Kings Road Entertainment, Inc., et al.
--------------------------------------------------------

     On July 31, 2003, subsequent to the date of this report, Rigel USA Inc., a
California corporation, filed suit in the Superior Court of California, County
of Los Angeles, case number BC300041, in which the plaintiff alleged causes of
action against the Company, Micky Berresheim, and Ken Aguado for breach of
contract, promissory estoppel, breach of implied in law contract, breach of
implied in fact contract, declaratory relief and unfair competition. The
plaintiff was seeking declaratory relief in excess of $5,000,000. On or about
June 3, 2004, the Company entered into a Settlement Agreement with Rigel
providing for the settlement of the matter and other possible claims of the
parties. Pursuant to the terms of the Settlement Agreement Rigel and the Company
have each agreed to release the other from any and all claims arising out of the
lawsuit. Additionally, as part of the Settlement the Company and Rigel executed
an Option and License Agreement, whereby in consideration of $10,000 paid by
Rigel to the Company, the Company granted Rigel two exclusive options to use the
word "Kickboxer" in the title of up to two live-action feature length motion
pictures. The first option period shall commence on August 1, 2004 and end on
October 31, 2005, and shall be exercised by commencement of principal
photography and the payment of $90,000 to the Company. The option for the second
motion picture shall commence on November 1, 2005 and end on July 31, 2006, and
shall be exercised by the commencement of principal photography and the payment
of $75,000 to the Company. Either or both motion pictures are produced, the
Company shall also be entitled to 10% of net proceeds.

                                       10

<PAGE>

Second Demand Letter from the Shareholders Action Committee
-----------------------------------------------------------

     On November 10, 2003 the Company received a letter from the Chairman of the
Kings Road Shareholders Action Committee inquiring as to the status of the
Independent Counsel's investigation into a series of transactions that occurred
during the period of November 1998 through April 2001. The inquiry as conducted
by the independent counsel was proceeding at an unsatisfactory pace and
therefore the Board removed this first independent counsel. The Board has
recently appointed new independent counsel to investigate these transactions and
report to the Board, the Shareholders Action Committee and the Shareholders. The
inquiry is now proceeding at a satisfactory pace and the Board expects to
receive a status report in the very near future.

Demand and Notice For Annual Meeting
------------------------------------

     On November 17, 2003 the Board received a Letter from counsel for Kings
Road Enterprises Corp. (formerly Parkland AG) of which Mr. Michael Berresheim a
former officer and director of the Company, is the principal shareholder, the
President and a director. In this letter, Kings Road Enterprises Corp., the
holder of 1,507,247 shares of common stock of the Company, claims that the Board
has failed to comply with SEC filing regulations and announced his intention of
calling a Special Shareholders Meeting in order to replace the Board of
Directors. Mr. Berresheim, through his counsel, was advised that the Board was
working with the Company's auditors in order to complete any delinquent reports
and intended on holding an annual meeting of the Shareholders as soon as
practical after the Company's period reports were current the Rigel lawsuit had
been resolved, and the Company had received the report from the independent
counsel pertaining to the Demand of the Shareholders Action Committee.

     Subsequent to the period covered by this report, the Company has announced
that the date of the 2004 annual meeting of stockholders will be September 15,
2004 and that the record date for stockholders entitled to notice and to vote at
the meeting and any postponements and adjournments thereof, is fixed at July 30,
2004.

Claim Against Michael Berresheim, Eric Ottens, et al.
----------------------------------------------------

     On or about April 1, 2004, the Company discovered that checks in an
aggregate amount of $103,517, from Paramount Pictures Group ("Paramount")
payable to Regal Productions c/o Kings Road Entertainment (earned by the Company
and Regal Productions) as part of its joint venture on the film "Fastbreak",
were deposited into accounts of Kings Road Entertainment, Inc., (Florida
Corporation P03000042628) and Kings Road to Fame, Inc. (Florida Corporation
P03000043121) dba Regal Productions, corporations controlled by Michael
Berresheim and Eric Ottens, without the consent or knowledge of the Company. The
Company has notified Messrs. Berresheim and Ottens that it has concluded that
these monies have been diverted and should be returned immediately to the
Company.

     Mr. Berresheim strenuously denies that such monies were taken without the
Company's knowledge, but nevertheless has informed the Company that it is his
intention to repay these monies to the Company in July 2004. The Company has
requested that Mr. Berresheim pledge all shares of the Company owned directly or
indirectly by him or entities controlled by him, as collateral for repayment,
but Mr. Berresheim has refused to do so, and as of the date of this report has
not repaid these monies.

     The Company's investigation has revealed that four checks sent by Paramount
between April 1, 2003 and December 20, 2003, payable to Regal Productions c/o
Kings Road Entertainment, were mailed to 5743 NW 66th Avenue, Parkland, Florida
33067, the previous address of the Company. Rather than contacting and
forwarding these check to the Company the checks were deposited into accounts of
Kings Road Entertainment, Inc. (Florida Corporation P03000042628) and Kings Road
to Fame, Inc. (Florida Corporation P03000043121) dba Regal Productions,
corporations controlled by Messrs. Berresheim and Ottens.

                                       11

<PAGE>

     The Company has learned that on April 11, 2003, Messrs. Berresheim and
Ottens filed electronic Articles of Incorporation with the Secretary of State of
Florida, to form Kings Road Entertainment, Inc. (Florida Corporation
P03000042628) which Articles were processed on April 16, 2003. According to the
Florida Secretary of State records, Mr. Berresheim was and is the President and
a Director, and Mr. Ottens was and is the Secretary and a Director, of Kings
Road Entertainment, Inc. (Florida Corporation P03000042628).

     On April 11, 2003, Messrs. Berresheim and Ottens also filed electronic
Articles of Incorporation with the Secretary of State of Florida, to form Kings
Road to Fame, Inc. (Florida Corporation P03000043121), which Articles were
processed on April 17, 2003. According to the Florida Secretary of State
records, Mr. Berresheim was and is the President and a Director, and Mr. Ottens
was and is the Secretary and a Director, of Kings Road to Fame, Inc. (Florida
Corporation P03000043121).

     On April 17, 2003, Kings Road to Fame, Inc. (Florida Corporation
P03000043121) filed an application for registration of the use of the fictitious
name "Kings Road Entertainment" and "Regal Productions."

     Between April 18, 2003 and December 20, 2003, without the knowledge or
authorization of the Company, the 4 checks totaling $103,517, belonging to the
Company and Regal Productions were deposited into accounts of Kings Road
Entertainment, Inc., (Florida Corporation P03000042628) and Kings Road to Fame,
Inc. (Florida Corporation P03000043121) dba Regal Productions.

     On June 8, 2004, the Company made a demand upon Kings Road Entertainment,
Inc., (Florida Corporation P03000042628) Kings Road to Fame, Inc. (Florida
Corporation P03000043121) dba Regal Productions, and Messrs. Berresheim and
Ottens, to pay the Company the sum of $103,517 plus interest and attorneys fees.

     Messrs. Berresheim and Ottens, through counsel, have denied any
malfeasance, and Mr. Berresheim has indicated his intention to repay these
monies, and to undertake other actions, to resolve this situation.

     The Company is currently in negotiations with counsel for Mr. Berresheim
with regard to the settlement of this matter. If settlement cannot be reached
according to terms acceptable to the Company, the Company intends to proceed as
necessary to recover the amounts due. As of the date of this report Mr.
Berresheim has not repaid these monies and no settlement has been reached.

     The Company is not aware of any pending claims or assessments, other than
as described above, which may have a material adverse impact on the Company's
financial position or results of operations.

                                       12

<PAGE>

Item 2. Changes in Securities.

     None.

Item 3. Defaults Upon Senior Securities.

     None.

Item 4. Submission of Matters to a Vote of Security Holders.

     No matter was submitted to a vote of our shareholders during the quarter
ended January 31, 2004.

Item 5. Other Information.

     None.

Item 6. Exhibits and Reports on Form 8-K

     (a) Exhibits (numbered in accordance with Item 601 of Regulation S-B)

          3.1     Restated Certificate of Incorporation of Registrant (1)
          3.2     Bylaws of Registrant (2)
          10.1    1998 Stock Option Plan (1)
          21      Subsidiaries of Registrant (3)
          99.1**  Certification of Chief Executive Officer Pursuant to 18 U.S.C.
                  Section 1350
          99.2**  Certification of Chief Financial Officer Pursuant to 18 U.S.C.
                  Section 1350
          99.3**  906 Certification
          _______________
          (1) Incorporated by reference to Form 10-KSB for the fiscal year ended
              April 30, 1998.
          (2) Incorporated by reference to Form 10-KSB for the fiscal year ended
              April 30, 1988.
          (3) Incorporated by reference to Form 10-KSB for the fiscal year ended
              April 30, 2001
          **  Filed Herewith

     (b) Forms 8-K

     There were no reports on Form 8-K filed during the period covered by this
report.

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<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
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.



        July 15, 2004                            /s/ Geraldine Blecker
Date:  _______________                           _______________________________
                                                 By: Geraldine Blecker
                                                 Its:  Chief Executive Officer



        July 15, 2004                            /s/ H. Martin DeFrank
Date:  ________________                          _______________________________
                                                 By: H. Martin DeFrank
                                                 Its:  Chief Financial Officer


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