<PAGE>   1



                     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, 2000      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.)


                        3489 West Cahuenga Blvd., Suite D
                           Hollywood, California 90068
                     (Address of principal executive office)


Issuer's telephone number:  (323) 512-5045



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 March 15, 1999 the registrant had 3,482,019 shares of its common stock
outstanding.


Transitional Small Business Disclosure Format:  YES [ ]     NO [X]




<PAGE>   2


PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                    AS OF
                                                                               JAN. 31, 2000
                                                                              ---------------

<S>                                                                                 <C>
     ASSETS
        Cash and Cash Equivalents                                               $    37,672
        Accounts Receivable, net of allowance of $32,630                            146,920
        Film Costs, net of amortization of $168,424,493                             132,532
        Investment in Immediate Entertainment Group                                 539,364
        Other Investments                                                         1,000,000
        Prepaid Expenses                                                             18,876
        Fixed Assets                                                                  9,748
        Other Assets                                                                 26,606
                                                                                -----------
     TOTAL ASSETS                                                               $ 1,911,718
                                                                                ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY

     LIABILITIES
        Accounts Payable                                                        $   205,985
        Accrued Expenses                                                             33,459
        Note Payable to Related Parties                                             210,803
        Convertible Note Payable                                                  1,000,000
        Note Payable                                                                250,000
        Deferred Revenue                                                              1,900
                                                                                -----------
          TOTAL LIABILITIES                                                       1,702,147

     STOCKHOLDERS' EQUITY
        Common Stock, $.01 par value, 12,000,000 shares
           authorized, 3,481,310 shares issued and outstanding                       34,820
        Additional Paid-In Capital                                               24,734,382
        Deficit                                                                 (24,559,631)
                                                                                -----------
          TOTAL STOCKHOLDERS' EQUITY                                                209,571
                                                                                -----------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                 $ 1,911,718
                                                                                ===========

</TABLE>

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



                                       2
<PAGE>   3



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

<TABLE>
<CAPTION>

                                                                      THREE MONTHS                        NINE MONTHS
                                                                      ENDED JAN. 31,                      ENDED JAN. 31,
                                                                  2000            1999               2000             1999
                                                              ----------      ----------         ----------       ----------
<S>                                                             <C>             <C>                <C>              <C>
REVENUES
  Feature Films                                               $  234,898      $  242,806         $  525,338       $  464,970
  Interest Income                                                    168           4,466                581           71,165
                                                              ----------      ----------         ----------       ----------
                                                                 235,066         247,272            525,919          536,135

COSTS AND EXPENSES
  Costs Related to Revenue                                        41,249          81,997             76,215           90,854
  Selling Expenses                                                 8,858           3,016             14,065           32,489
  General & Administrative Expenses                              157,307         235,604            634,149          548,191
  Interest                                                        26,571           2,426             79,001            2,426
  Cancellation of Stock Options                                        0         113,754                  0          113,754
                                                              ----------      ----------         ----------       ----------
                                                                 233,985         436,797            803,430          787,714
                                                              ----------      ----------         ----------       ----------
  OPERATING INCCOME/(LOSS)                                         1,081        (189,525)          (277,511)        (251,579)

OTHER EXPENSES
  Equity in Losses of Affiliates                                 299,155          31,236          1,495,772           31,236
  Adjustment in Valuation of Other Investments                         0               0            250,000                0
                                                              ----------      ----------         ----------       ----------
                                                                 299,155          31,236          1,745,772           31,236

  LOSS BEFORE INCOME TAXES                                      (298,074)       (220,761)        (2,023,283)        (282,815)

Provision for Income Taxes                                         2,620               0              2,866          (18,940)
                                                              ----------      ----------         ----------       ----------
  NET LOSS                                                     ($300,694)      ($220,761)       ($2,026,149)       ($263,875)
                                                              ==========      ==========         ==========       ==========
  Net Loss Per Share - Basic                                      ($0.09)         ($0.07)            ($0.58)          ($0.11)
                                                              ==========      ==========         ==========       ==========

  Weighted Average Number of Common
  Shares - Basic                                               3,482,019       3,389,315          3,479,457        2,404,270
                                                              ==========      ==========         ==========       ==========

  Net Loss Per Share - Diluted                                    ($0.09)         ($0.07)            ($0.58)          ($0.11)
                                                              ==========      ==========         ==========       ==========

  Weighted Average Number of Common Shares
  and Common Share Equivalents - Diluted                       3,482,019       3,389,315          3,479,457        2,404,270
                                                              ==========      ==========         ==========       ==========
</TABLE>


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



                                       3
<PAGE>   4


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

<TABLE>
<CAPTION>

                                                                                         FOR THE NINE MONTHS
                                                                                          ENDED JANUARY 31,
                                                                                      2000                 1999
                                                                                   -----------          ----------
<S>                                                                                <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net Loss                                                                      ($2,026,149)          ($263,875)
     Adjustments to reconcile Net Loss to Net Cash
     Provided by/(Used in) Operating Activities:
          Depreciation and Amortization                                                 79,547              97,024
          Equity in Losses of Affiliates                                             1,495,772              31,236
          Adj. in Valuation of Other Investments                                       250,000                   0
     Change in Assets and Liabilities:
          Decrease in Restricted Cash                                                1,000,000                   0
          Decrease/(Increase) in Accounts Receivable                                   185,422             (14,645)
          Increase in Amount Due from Related Party                                    (93,210)                  0
          Increase in Prepaid Expenses                                                  (2,642)            (24,260)
          Decrease in Other Assets                                                     114,573                   0
          Decrease in Accounts Payable                                                 (64,991)            (28,150)
          Decrease in Accrued Expenses                                                 (58,193)             (4,414)
          Decrease in Deferred Revenue                                                  (5,375)             (1,200)
                                                                                   -----------          ----------
     NET CASH AND CASH EQUIVALENTS PROVIDED BY/
     (USED IN) OPERATING ACTIVITIES                                                    874,754            (208,284)

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of Investments                                                        (1,250,000)         (5,983,087)
     Gross Additions to Film Cost                                                      (51,261)            (98,441)
     Purchase of Fixed Assets                                                           (3,312)             (4,560)
                                                                                   -----------          ----------
     NET CASH AND CASH EQUIVALENTS USED
     IN INVESTING ACTIVITIES                                                        (1,304,573)         (6,086,088)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Issuance of Stock                                                                 161,908                   0
     Issuance of Note Payable                                                          250,000                   0
     Issuance of Stock for Investments                                                       0           3,472,285
     Borrowing from Related Parties                                                          0             210,803
                                                                                   -----------          ----------
     NET CASH AND CASH EQUIVALENTS PROVIDED
     BY FINANCING ACTIVITIES                                                           411,908           3,683,088
                                                                                   -----------          ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                                              (17,911)         (2,611,284)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                        55,583           2,658,500
                                                                                   -----------          ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                         $    37,672          $   47,216
                                                                                   ===========          ==========

</TABLE>

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



                                       4


<PAGE>   5

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE A - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles 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, 1999 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 as of January 31, 2000 and the results of operations and cash flows for
the three and nine month periods ended January 31, 2000 and 1999 have been
included.

The results of operations for the three and nine month periods ended January 31,
2000 are not necessarily indicative of the results to be expected for the full
fiscal year. For further information, refer to the financial statements and
footnotes thereto included in the Company's annual report on Form 10-KSB for the
year ended April 30, 1999.

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 periods.
Actual results could differ from those estimates.

Certain amounts for the three and nine month periods ended January 31, 1999 have
been reclassified to conform to the presentation of the January 31, 2000
amounts. The reclassifications have no effect on the net loss for the three and
nine month periods ended January 31, 1999.


NOTE B - FILM COSTS

Film costs consist of:

<TABLE>
<CAPTION>
                                                                       As Of
                                                                   Jan. 31, 2000
                                                                   -------------
<S>                                                                 <C>
           Released Films, less amortization                               $0
           Films in Development                                       132,532
                                                                     --------
                                                                     $132,532
                                                                     ========
</TABLE>



                                       5


<PAGE>   6

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE C - INVESTMENT IN IMMEDIATE ENTERTAINMENT GROUP

On November 9, 1998, the Company acquired 2,393,235 shares of Immediate
Entertainment Group, Inc. ("Immediate"), approximately 19% of Immediate's
outstanding common stock, for an aggregate of $2,300,000 in cash, 1,477,567
newly issued shares of the Company's common stock and a note payable to the
sellers of the stock for $210,803. The Company's investment in Immediate has
been accounted for using the equity method. The Company's investment in
Immediate also includes $240,210 of amounts advanced to Immediate or payments
made to third parties on Immediate's behalf. Immediate is a diversified
entertainment holding company that provides services relating to music
production, audio recording, CD manufacturing, film soundtrack and script
development and operates a mail order music club.

The Company has evaluated the recoverability of its investment in Immediate and
has recorded a valuation allowance of approximately $1,258,000 during the nine
months ended January 31, 2000. Immediate has experienced recurring operating
losses and has a working capital deficit. Immediate's management is presently
pursuing plans to increase sales, reduce administrative costs, improve cash flow
and obtain additional financing. Immediate's ability to achieve its operating
goals and to obtain additional financing is uncertain.


NOTE D - OTHER INVESTMENTS

On May 12, 1999, the Company acquired 140 shares of Star TV AG ("Star"),
approximately 19% of Star's outstanding common stock for $1,000,000 in cash. The
Company's investment in Star has been accounted for using the cost method. Star
is a developing cable television network based in Switzerland. (SEE NOTE G -
SUBSEQUENT EVENTS).


NOTE E - NOTES PAYABLE

On November 9, 1998, the Company acquired 2,393,235 shares of Immediate,
approximately 19% of Immediate's outstanding common stock, from FAB Capital
Corporation ("FAB"), MBO Music Verlag GmbH ("MBO") and West Union Leasing Ltd.
("West") for an aggregate of $2,300,000 in cash, 1,477,567 newly issued shares
of the Company's common stock and a note payable to the sellers of the stock for
$210,803 bearing interest at 5% per annum due upon demand but in no event
earlier that April 30, 2000 ("Note"). Pursuant to such transaction, FAB, MBO and
West are due $93,175, $82,424, and $35,204, respectively, under the Note. The
accrued and unpaid interest balance at January 31, 2000 was $12,967.



                                       6


<PAGE>   7

                 KINGS ROAD ENTERTAINMENT, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE E - NOTES PAYABLE (CONTINUED)

On April 26, 1999, the Company issued a convertible note ("Convertible Note") to
Tresor Worldwide Limited ("Tresor") in the principal amount of $1,000,000. The
Convertible Note bore interest at the rate of 8% per annum, payable quarterly on
July 1, 1999, October 1, 1999 and January 1, 2000. Tresor had the right to
convert, in whole or in part, any outstanding and unpaid principal and interest
into fully paid and non-assessable shares of the Company's common stock at the
lower of (i) $2.06 per share or (ii) 70% of the average closing bid price for
the five (5) trading days immediately preceding the date of conversion but in no
event less than $1.00 ("Conversion Price"). The Conversion Price was subject to
reduction of 3% per month beginning on the six month anniversary of the
Convertible Note if any portion of the securities issuable upon conversion had
not been registered under the Securities Act of 1933, as amended. The Company
entered into a Registration Rights Agreement with Tresor wherein the Company, as
soon as practicable, agreed to register the securities issuable upon conversion.
The accrued and unpaid interest balance at January 31, 2000 was $6,793. (SEE
NOTE G - SUBSEQUENT EVENTS).

On May 17, 1999, the Company entered into a Loan Agreement ("Star Loan
Agreement") with Star whereby the Company borrowed $250,000 from Star ("Star
Loan") bearing interest at 6% per annum. The Star Loan was originally due July
19, 1999. By agreement dated July 22, 1999, the due date was extended until
August 19, 1999. By further agreement, the due date was extended until December
22, 1999. The accrued and unpaid interest balance at January 31, 2000 was
$10,538. (SEE NOTE G - SUBSEQUENT EVENTS).


NOTE F - LITIGATION AND CONTINGENCIES

In the ordinary course of business, the Company has or may become involved in
disputes or litigation. On the basis of information available to it, the Company
believes such contingencies will not have a materially adverse impact on the
Company's financial position or results of operations.


NOTE G - SUBSEQUENT EVENTS

On February 15, 2000, the Company sold its investment in Star back to Star in
exchange for (i) extinguishment of the Star Loan and related interest payable
and (ii) cash proceeds of $1,000,000. Using the cash proceeds, the Company then
repaid the Convertible Note in full.




                                       7


<PAGE>   8

ITEM 2   - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
           RESULTS OF OPERATIONS

RECENT DEVELOPMENTS

         Subsequent to the fiscal year ended April 30, 1995, the Company has not
produced any new films and has derived revenues almost exclusively from the
exploitation of films produced prior to April 30, 1995. Following the death on
October 4, 1996 of Mr. Stephen Friedman, the Company's founder and then Chairman
of the Board of Directors and Chief Executive Officer, the Company explored
various business options, including, among other things, the liquidation of the
Company, the sale of the Company as a going concern to an outside party, the
sale of substantially all of the assets of the Company to an outside party and
the issuance of shares of common stock to an outside party that would provide a
new source of financing for the Company. The Company had discussions with over
twenty outside parties which expressed varying degrees of interest in acquiring
all or part of the Company or in supplying additional capital in return for an
equity interest in the Company.

         On November 6, 1998, pursuant to a Stock Acquisition Agreement, FAB,
MBO, West and RAS Securities, Inc. purchased 962,360 shares of the Company's
common stock (approximately 50.3% of the Company's then outstanding common
stock) from the Estate of Stephen Friedman ("Estate") and Christopher Trunkey,
the Chief Financial Officer of the Company, for a purchase price of $2.35 per
share or $2,261,546 in the aggregate. In addition, Music Action Ltd. agreed that
it would, as soon as practicable but in any event within 120 days after November
6, 1998, make or cause to be made an offer to each of the Company's shareholders
other than the Acquirors, the Estate and Mr. Trunkey, for the purchase of up to
ninety percent (90%) of such shareholder's shares at a price of $2.35 per share.
MAC agreed that, in the event the Purchase Offer was not made within ninety days
after November 6, 1998, it would deposit $1,800,000 into escrow to be applied
toward the Purchase Offer. FAB agreed to make the $1,800,000 deposit into escrow
in the event MAC did not do so. On February 3, 1999, the Stock Acquisition
Agreement was amended to eliminate the Purchase Offer due to the fact that the
Company's closing share price exceeded the $2.35 Purchase Offer price for the
previous ten (10) trading days.

         On November 9, 1998, the Company acquired 2,393,235 shares of
Immediate, approximately 19% of Immediate's outstanding common stock, for an
aggregate of $2,300,000 in cash, 1,477,567 newly issued shares of the Company's
common stock and a note payable to the sellers of the stock for $210,803.
Immediate is a diversified entertainment holding company that provides services
relating to music production, audio recording, CD manufacturing, film soundtrack
and script development and operates a mail order music club.

         On May 12, 1999, the Company acquired 140 shares of Star TV AG
("Star"), approximately 19% of Star's outstanding common stock for $1,000,000 in
cash. Star is a developing cable television network based in Switzerland. On
February 15, 2000, the Company sold its investment in Star back to Star in
exchange for (i) extinguishment of the $250,000 Star Loan and related interest
payable and (ii) cash proceeds of $1,000,000.



                                       8


<PAGE>   9

RESULTS OF OPERATIONS

THE THREE MONTHS ENDED JANUARY 31, 2000 VS. THE THREE MONTHS
ENDED JANUARY 31, 1999

         For the quarter ended January 31, 2000 feature film revenues were
approximately $235,000 as compared to approximately $243,000 for the quarter
ended January 31, 2000. Costs related to revenue for the quarter ended January
31, 2000 decreased to approximately $41,000 versus approximately $82,000 for the
quarter ended January 31, 1999. This decrease results primarily from the fact
that a significant portion of the costs associated with the Company's films has
previously been amortized. Selling expenses increased to approximately $9,000
during the quarter ended January 31, 2000 versus approximately $3,000 during the
same quarter last year primarily from increased sales commissions paid by the
Company.

         General and administrative costs decreased by approximately 33% to
approximately $157,000 during the quarter ended January 31, 2000 versus
approximately $236,000 during the same period last year. This decrease results
primarily from a decrease in legal fees of approximately $105,000 partially
offset by increases in accounting and consulting fees. Interest expense during
the quarter ended January 31, 2000 was approximately $27,000 versus
approximately $2,000 during the same quarter last year. This increase results
from the significant increase in notes payable outstanding during the respective
periods.

         Equity in losses of affiliates was approximately $299,000 during the
quarter ended January 31, 2000 resulting from a valuation allowance recorded by
the Company to reflect the Company's evaluation of the recoverability of its
investment in Immediate. Immediate has experienced recurring operating losses
and has a working capital deficit. Immediate's management is presently pursuing
plans to increase sales, reduce administrative costs, improve cash flow and
obtain additional financing. Immediate's ability to achieve its operating goals
and to obtain additional financing is uncertain.

         During the quarter ended January 31, 2000, the Company incurred a net
loss of approximately $301,000 versus a net loss of approximately $221,000 for
the quarter ended January 31, 1999. This increased loss results primarily from
the valuation allowance of approximately $299,000 recorded to reflect the
Company's uncertainty in fully recovering its investment in Immediate partially
offset by decreased general and administrative expenses. During the quarters
ended January 31, 2000 and 1999, the Company had no significant provision for
income taxes.

THE NINE MONTHS ENDED JANUARY 31, 2000 VS. THE NINE MONTHS
ENDED JANUARY 31, 1999

         For the nine months ended January 31, 2000 feature film revenues were
approximately $525,000 as compared to approximately $465,000 for the nine months
ended January 31, 1999. This increase in feature film revenues of approximately
$60,000 results primarily from revenue generated by the initial release of All
of Me, The Best of Times and The Big Easy to the DVD market pursuant to an
agreement between Trimark Pictures and the Company. During the nine months ended
January 31, 2000, interest income was approximately $1,000 versus approximately
$71,000 during the same quarter last year, reflecting the substantial decrease
in cash and marketable securities held during the nine months ended January 31,
2000 versus the same period last year.

         Costs related to revenue for the nine months ended January 31, 2000
decreased to approximately $76,000 versus approximately $91,000 for the nine
months ended January 31,


                                       9


<PAGE>   10

1999. This decrease results primarily from the fact that a significant
portion of the costs associated with the Company's films has previously been
amortized. Selling expenses decreased to approximately $14,000 during the nine
months ended January 31, 2000 versus approximately $32,000 during the same
period last year. This decrease results primarily from decreased distribution
expenses related to the Company's agreement with Trimark Pictures to release
seventeen (17) of the Company's films to the DVD and home videocassette markets.

         General and administrative costs increased by approximately 16% to
approximately $634,000 during the nine months ended January 31, 2000 versus
approximately $548,000 during the same period last year. This increase results
primarily from increases in accounting and consulting fees and financing costs
associated with the Convertible Note partially offset by a decrease in employee
salary expenses. Interest expense during the nine months ended January 31, 2000
was approximately $79,000 versus approximately $2,000 during the same period
last year. This increase results from the significant increase in notes payable
outstanding during the respective periods.

         Equity in losses of affiliates was approximately $1,496,000 during the
nine months ended January 31, 2000 resulting primarily from a valuation
allowance of approximately $1,258,000 recorded by the Company to reflect the
Company's evaluation of the recoverability of its investment in Immediate.
Immediate has experienced recurring operating losses and has a working capital
deficit. Immediate's management is presently pursuing plans to increase sales,
reduce administrative costs, improve cash flow and obtain additional financing.
Immediate's ability to achieve its operating goals and to obtain additional
financing is uncertain.

         During the nine months ended January 31, 2000, the Company incurred a
net loss of approximately $2,026,000 versus a net loss of approximately $264,000
for the nine months ended January 31, 1999. This increased loss results
primarily from (i) a valuation allowance of approximately $250,000 recorded to
reflect the Company's uncertainty in fully recovering a certain investment, (ii)
a valuation allowance of approximately $1,258,000 recorded to reflect the
Company's uncertainty in fully recovering its investment in Immediate (iii) the
Company's share of losses incurred by Immediate, and (iv) increased general and
administrative and interest expenses. During the nine month periods ended
January 31, 2000 and 1999, the Company had no significant provision for income
taxes.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's principal sources of working capital during the three and
nine month periods ended January 31, 2000 were motion picture licensing income,
the proceeds from the Star Loan and the proceeds from a Regulation S offering to
offshore investors. Except for the financing of film production costs,
management believes that its existing cash resources will be sufficient to fund
its ongoing operations for the next twelve months.

         For the nine months ended January 31, 2000, the Company's net cash flow
provided by its operating activities was approximately $875,000, an increase of
approximately $1,083,000 as compared to approximately $208,000 of net cash flow
used in operating activities during the nine months ended January 31, 1999.
During the nine months ended January 31, 2000, the Company used its cash flow
from operations plus approximately $412,000 of cash flow provided by financing
activities to make investments of approximately $1,305,000. As of January 31,
2000, the Company had cash and cash equivalents of approximately $37,000 as
compared to approximately $47,000 at January 31, 1999.


                                       10


<PAGE>   11

FUTURE COMMITMENTS

         The Company does not have any material future commitments for capital
expenditures.

         On February 15, 2000, the Company sold its investment in Star back to
Star in exchange for (i) extinguishment of the $250,000 Star Loan and related
interest payable and (ii) cash proceeds of $1,000,000. Using the cash proceeds,
the Company then repaid the Convertible Note in full. (SEE NOTE E - NOTES
PAYABLE AND NOTE G - SUBSEQUENT EVENTS).

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. In addition, the
Company is currently seeking merger and acquisition proposals for the Company
and its plans, strategies and future results are subject to the outcome of any
such proposals.

PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

         In the ordinary course of business, the Company has or may become
involved in disputes or litigation. On the basis of information available to it,
management believes such contingencies will not have a materially adverse impact
on the Company's financial position or results of operations.

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)

    27    Financial Data Schedule.(3)
    ---------------
    (1)  Incorporated by reference to Form 10-KSB for the fiscal year ended
         April 30, 1998.
    (2)  Incorporated by reference to Form 10-K for the fiscal year ended
         April 30, 1988.
    (3)  Filed electronically with Securities and Exchange Commission, omitted
         in copies distributed to shareholders or other persons.

(B)  FORMS 8-K

     None

                                       11




<PAGE>   12

                                   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.



Date:  March 15, 2000                    KINGS ROAD ENTERTAINMENT, INC.


                                         By: /s/ Christopher M. Trunkey
                                             ---------------------------
                                               Christopher M. Trunkey,
                                               Chief Financial Officer











                                       12