**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,
                2007**


**-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 þ No o





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 each of the Registrant’s classes of common
      stock, as of January 31, 2007 was 7,157,740 shares, all of one class of $0.01
      par value Common Stock. As of April 2nd, 2008 the number of shares outstanding
      of each of the Registrant’s classes of common stock was 10,756,493




Page
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          18




**KINGS
      ROAD ENTERTAINMENT, INC.**


**FORM
      10-QSB**


**Quarter
      Ended January 31, 2007**





**TABLE
      OF CONTENTS**


**FINANCIAL
                  INFORMATION**
              **PAGE**Item
                  1.
              Financial
                  StatementsConsolidated
                  Balance Sheets as of January 31, 2007 and April 30, 2006
              F-1Consolidated
                  Statements of Operations for the Three Months EndedJanuary
                  31, 2007 and 2006
              F-2Consolidated
                  Statements of Operations for the Nine Months EndedJanuary
                  31, 2007 and 2006
              F-3Consolidated
                  Statements of Cash Flows for the Nine Months EndedJanuary
                  31, 2007 and 2006
              F-4Notes
                  to Consolidated Financial Statements as of January 31,
                  2007
              F-5
                  - F-10Item
                  2.
              Managements
                  Discussion and Analysis or Plan of Operation
              13Item
                  3.
              Controls
                  and Procedures
              14**PART
                  II—OTHER INFORMATION**Item
                  1.
              Legal
                  Proceedings
              15Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use of Proceeds
              17Item
                  3.
              Defaults
                  Upon Senior Securities
              17Item
                  4.
              Submission
                  of Matters to a Vote of Security Holders
              17Item
                  5.
              Other
                  Information
              17Item
                  6.
              Exhibits
                  and Reports on Form 8-K
              18**SIGNATURES**
              **18**




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          18




**PART
      1: FINANCIAL INFORMATION**





**Item
      1. Financial Statements**





**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      BALANCE SHEETS**


**AS
      OF JANUARY 31, 2007 AND APRIL 30, 2006**




January
                31, 2007
            
            April
                30, 2006**ASSETS**
            
            (unaudited)
            
            (audited)**Current
                assets:**Cash
                and cash equivalents
            
            $
            456,993
            
            $
            735,825Restricted
                cash
            
            
            61,952
            
            
            61,952Accounts
                receivable, trade
            
            
            0
            
            
            113,699Prepayments
                and other current assets
            
            
            5,190
            
            
            0Total
                current assets
            
            
            524,135
            
            
            911,476OTHER
                ASSETSFilm
                development costs, net
            
            
            70,037
            
            
            70,037Total
                Other Assets
            
            
            70,037
            
            
            70,037**TOTAL
                ASSETS**
            
            $
            594,172
            
            $
            981,513**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**Current
                liabilities:Accounts
                payable
            
            $
            179,764
            
            $
            138,624Accrued
                expenses
            
            
            382,253
            
            
            360,508Deferred
                revenue
            
            
            994,123
            
            
            1,052,442Line
                of credit
            
            
            60,000
            
            
            60,000Liabilities
                from discontinued operations
            
            
            4,000
            
            
            4,000Total
                current liabilities
            
            
            1,620,140
            
            
            1,615,574Stockholders’
                equity:Common
                stock; 12,000,000 shares authorized at $0.01 par value; 7,157,740
                shares
                issued and outstanding at January 31, 2007 and 6,957,740 at April
                30, 2006
                respectively.
            
            
            71,577
            
            
            69,577Additional
                paid-in capital
            
            
            25,241,655
            
            
            25,211,655Accumulated
                deficit
            
            
            (25,915,293
            )
            
            (25,687,802
            )Net
                Profit (Loss) for Period
            
            
            (423,907
            )
            
            (227,491
            )Total
                stockholders’ equity (deficit)
            
            
            (1,025,968
            )
            
            (634,061
            )**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY**
            
            $
            594,172
            
            $
            981,513





See
      accompanying notes to consolidated financial statements.





F-1




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          18




**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**FOR
      THE THREE MONTHS ENDED JANUARY 31, 2007 and 2006**


**(Unaudited)**





Three
                months ended January 31,2007
            
            2006**REVENUES**Feature
                films
            
            $
            48,184
            
            $
            120,639**TOTAL
                REVENUE**
            
            
            48,184
            
            
            120,639**OPERATING
                EXPENSES:**General
                and administrative
            
            
            228,096
            
            
            124,278Total
                operating expenses
            
            
            228,096
            
            
            124,278**INCOME
                (LOSS) FROM OPERATIONS**
            
            
            (179,912
            )
            
            (3,639
            )**OTHER
                INCOME**Interest
                income
            
            
            5,798
            
            
            6,855Total
                Other Income
            
            
            5,798
            
            
            6,855**INCOME
                (LOSS) BEFORE INCOME TAXES**
            
            
            (174,114
            )
            
            3,216PROVISION
                FOR INCOME TAXES
            
            
            0
            
            
            0**NET
                INCOME (LOSS)**
            
            $
            (174,114
            )
            $
            3,216Net
                income (loss) per share - Basic
            
            $
            (0.02
            )
            $
            0.00Basic
                weighted average number of shares outstanding during the
                period
            
            
            7,157,740
            
            
            6,957,740






See
      accompanying notes to consolidated financial statements.




F-2




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          18


**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**FOR
      THE NINE MONTHS ENDED JANUARY 31, 2007 and 2006**


**(Unaudited)**


Nine
                  months ended January 31,2007
              
              2006**REVENUES**Feature
                  films
              
              $
              165,557
              
              $
              393,517**TOTAL
                  REVENUE**
              
              
              165,557
              
              
              393,517**OPERATING
                  EXPENSES:**General
                  and administrative
              
              
              609,214
              
              
              585,915Total
                  operating expenses
              
              
              609,214
              
              
              585,915**INCOME
                  (LOSS) FROM OPERATIONS**
              
              
              (443,657
              )
              
              (192,398
              )**OTHER
                  INCOME**Other
                  income
              
              
              0
              
              
              13,910Interest
                  income
              
              
              19,750
              
              
              9,295Interest
                  expense
              
              
              0
              
              
              (1,525
              )Total
                  Other Income
              
              
              19,750
              
              
              21,680**INCOME
                  (LOSS) BEFORE INCOME TAXES**
              
              
              (423,907
              )
              
              (170,718
              )**PROVISION
                  FOR INCOME TAXES**
              
              
              0
              
              
              0**NET
                  INCOME (LOSS)**
              
              $
              (423,907
              )
              $
              (170,718
              )Net
                  income (loss) per share - Basic
              
              $
              (0.06
              )
              $
              (0.02
              )Basic
                  weighted average number of shares outstanding during the
                  period
              
              
              7,080,204
              
              
              6,957,740




See
      accompanying notes to consolidated financial statements.




F-3




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          5 of
          18




**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**FOR
      THE NINE MONTHS ENDED JANUARY 31, 2007 and 2006**


**(Unaudited)**


Nine
                  months ended January 31,2007
              
              2006**CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Income
                  (loss) from continuing operations
              
              $
              (423,907
              )
              $
              (170,718
              )Adjustments
                  to reconcile income (loss) from continuing operations to net cash
                  (used
                  in) provided by operating activities:Common
                  stock issued for services
              
              
              32,000
              
              
              0Change
                  in operating assets and liabilities:Accounts
                  receivable, trade
              
              
              113,699
              
              
              (58,178
              )Prepayments
                  and other current assets
              
              
              (5,190
              )
              
              4,500Accounts
                  payable
              
              
              41,140
              
              
              (48,992
              )Accrued
                  expenses
              
              
              21,745
              
              
              107,947Deferred
                  revenue
              
              
              (58,319
              )
              
              852,523Net
                  cash provided by (used in) operating activities
              
              
              (278,832
              )
              
              687,082**CASH
                  FLOWS FROM FINANCING ACTVITIES:**(Increase)
                  /decrease in restricted cash
              
              
              0
              
              
              (1,566
              )Net
                  cash provided by (used in) financing activities
              
              
              0
              
              
              (1,566
              )**NET
                  CHANGE IN CASH AND CASH EQUIVALENTS**
              
              
              (278,832
              )
              
              685,516**CASH
                  AND CASH EQUIVALENTS, BEGINNING OF PERIOD**
              
              
              735,825
              
              
              112,114**CASH
                  AND CASH EQUIVALENTS, END OF PERIOD**
              
              $
              456,993
              
              $
              797,630




See
      accompanying notes to consolidated financial statements.




F-4




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          6 of
          18




**KINGS
      ROAD ENTERTAINMENT, INC.**


**Notes
      to Consolidated Financial Statements**


**As
      of January 31, 2007**




**NOTE
      1 - NATURE OF OPERATIONS**





Kings
      Road Entertainment, Inc, and its wholly-owned
      subsidiary ( 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.





The
      Company’s wholly-owned subsidiary, Ticker, Inc., (a California corporation) was
      inactive during the three month period ending January 31, 2007. The consolidated
      financial statements include those of Kings Road Entertainment, Inc. and its
      subsidiary.





**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, 2006, 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, 2007, the results of operations for the three and nine month
      periods ended January 31, 2007 and cash flows for the nine month period ended
      January 31, 2007 have been included. The results of operations for the three
      and
      nine month periods ended January 31, 2007, are not necessarily indicative of
      the
      results to be expected for the full fiscal year. A ll
      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.
      Newly
      Issued Accounting Pronouncements





In
      December 2002, the FASB issued Statement No. 148 "Accounting for Stock-Based
      Compensation - Transition and Disclosure - an amendment of FASB Statement No.
      123" (SFAS 148). SFAS 148 provides alternate methods of transition for a
      voluntary change to the fair value based method of accounting for stock-based
      employee compensation. In addition, this Statement amends the disclosure
      requirements of Statement 123 to require prominent disclosures in both annual
      and interim financial statements about the method of accounting for stock-based
      employee compensation and the effect of the method used on reporting results.
      SFAS 148 is effective for fiscal years beginning after December 15, 2003. We
      intend to adopt SFAS 148, however, we do not believe that the adoption of SFAS
      148 will materially affect the financial statements.




F-5




Page
          7 of
          18




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.




**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.
      Restricted Cash





As
      of
      January 31, 2007, restricted cash totaled $61,952, which was associated with
      the
      Company’s line of credit. During 2004, the Company entered into a certificate of
      deposit to secure a revolving line of credit. This certificate of deposit had
      a
      beginning principal balance of $60,000 and interest accrued at a rate two
      percent below the rate on the line of credit it secured. Funds contained in
      this
      CD are classified as restricted as long as the related line of credit is
      outstanding.





c.
      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, 2007, none of the Company's accounts receivable was from foreign
      distributors.




**NOTE
      4 - FIXED & OTHER ASSETS**





a.
      Fixed
      Assets





Fixed
      assets of the Company at January 31, 2007, 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, 2007.





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.





F-6




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          8 of
          18




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.





At
      January 31, 2007, film development costs totaled $70,037, which was net after
      an
      allowance of $30,000. During the three month period ended January 31, 2007,
      no
      film development costs were determined to be impaired.





**NOTE
      5 - LIABILITIES**





a. Deferred
      Revenue





As
      of
      January 31, 2007, the Company has deferred revenue totaling $994,123. The
      Company is following the guidelines of SOP 00-02 for film production and
      distribution.





b.
      Line
      of Credit ****





On
      March
      4, 2004, the Company entered into a revolving line of credit loan with a
      beginning principal balance of $60,000, secured by a $60,000 certificate of
      deposit (see Note 3). The Company’s credit line will expire on March 1, 2007
      unless renewed.





c.
      Discontinued Operations





As
      of
      January 31, 2007, the Company has $4,000 of accrued liabilities outstanding
      for
      its discontinued operations.





**NOTE
      6 - COMMITMENTS AND CONTINGENCIES**





a.
      Rent




The
      Company has its registered office at 468 N. Camden Drive, Beverly Hills and
      rented additional office space on S. Canon Drive, Beverly Hills during September
      2006. The Company also rents flexible storage space for its archives. Rent
      expense for the Company's office and archive storage space was $8,355 and $7,391
      during the three months ending January 31, 2007 and 2006, respectively.




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, 2006, and in our
      other filings with the Securities and Exchange Commission pursuant to the
      Securities Exchange Act of 1934, as amended. At
      January 31, 2007, 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.





F-7




Page
          9 of
          18




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 - COMMON STOCK**





At
      January 31, 2007, the Company had 12,000,000 authorized shares of common stock,
      of which 7,157,740 shares were issued and outstanding. During the three month
      period ended January 31, 2007, no new stock was either issued or authorized.





**NOTE
      8 - RECOGNITION OF REVENUES**





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, 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:


Months
                  After
              ApproximateMarketplace
              Initial
                  Release
              Release
                  PeriodDomestic
                  theatrical
              
              0-3
                  monthsAll
                  international markets
              
              1-12
                  yearsDomestic
                  home video/DVD
              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.





**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.




F-8




Page
          10
          of 18




**NOTE
      10 - GOING CONCERN**





The
      Company's consolidated financial statements are prepared using accounting
      principles generally accepted in the United States 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, 2007, the Company has
      a
      deficit in working capital of $1,096,005, has an accumulated deficit of
      approximately $26,339,200, and has sustained recent losses from operations.
      These conditions raise substantial doubt about the Company's ability to continue
      as a going concern. The Company has discontinued certain operations that have
      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.




**NOTE
      11 - SUBSEQUENT EVENTS**





a. Settlement of Certain Lawsuits and Entry into a Material Definitive
      Agreement





Subsequent
      to the period covered by this report, on March 19, 2007, the Company entered
      into a Settlement Agreement and Mutual General Release with Michael Berresheim,
      Eric Ottens, et al., ** and
      various entities, including, but not limited to MBO Media GmbH, and other
      individuals and/or entities that may or may not have had a connection to Michael
      Berresheim, Eric Ottens, et al. For further detail s refer to Part II, Item
      1-
      Legal Proceedings. The settlement was published in an 8-K filing on April 23,
      2007.





b.
      Shareholder Complaint against the Company and Derivative Suit





Subsequent
      to this report on April 18, 2007, shareholder John M. 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. 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.





Subsequent
      to this report, on July 24, 2007, the same shareholder, 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.





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





c.
      Litigation with Director and Former Officer





Subsequent
      to this report, on June 13, 2007, the Company filed a lawsuit against Director,
      H. Martin DeFrank, and Sloan Squared, LTC, (“Sloan”), for 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.




F-9




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Subsequent
      to this report, 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.





Subsequent
      to this report, 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 DeFrank. The foregoing event was filed in an 8-K on
      July
      18, 2008.





d.
      Ashford Capital, LLC stock purchase and rescission thereof





Subsequent
      to this report, on March 1, 2007, the Company entered into a Stock Purchase
      Agreement (“SPA”) with Ashford Capital, LLC, (“Ashford”) with a Closing Date of
      March 8, 2007, upon which the Company sold Four Million Seven Hundred Thousand
      (4,700,000) shares of the Company’s 144 Restricted Common Stock in exchange for
      Three Hundred Thousand Dollars ($300,000), which was paid at the closing. This
      unregistered sale of equity securities is exempt from registration based on
      Section 4(2) of the Securities Act of 1933. The foregoing event was reported
      in
      an 8-K filed on April 23, 2007.





Subsequent
      to this report, on May 4, 2007, a Rescission and Mutual Release Agreement
      (“Rescission Agreement”) was entered into by and between Ashford and the
      Company, thereby terminating the obligations of both parties under the above
      mentioned SPA. Pursuant to the Rescission Agreement, Ashford agreed to return
      the Shares acquired pursuant to the SPA and the Company agreed to return to
      Ashford $300,000 (USD) representing reimbursement for the purchase price of
      the
      Shares. The foregoing event was reported in an 8-K filed on June 12,
      2007.





The
      Company is not aware of any further 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.




F-10




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**ITEM
      2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATION**





The
      following review concerns the periods ended January 31, 2007 and January 31,
      2006, 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, 2006.





*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.





**Results
      of Operations**





**The
      Three Months Ended January 31, 2007 vs. the Three Months Ended January 31,
      2006**





For
      the
      quarter ended January 31, 2007, feature film revenues were $48,184 as compared
      to $120,639 for the quarter ended January 31, 2006. The decrease of $72,455
      results primarily from decreased revenues from distribution of the Company's
      feature film library.





Costs
      and
      expenses increased to $228,096 for the quarter ended January 31, 2007 as
      compared to $124,278 during the quarter ended January 31, 2006. This increase
      of
      $103,818 is due primarily to an increase in professional fees.




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The
      Company had a net loss of $174,114 for the quarter ended January 31, 2007 as
      compared to net income of $3,216 in the quarter ended January 31, 2006. This
      increase of net loss of $177,330 results primarily from a decrease in film
      revenues, and an increase in professional fees.





**The
      Nine Months Ended January 31, 2007 vs. the Nine Months Ended January 31, 2006**





For
      the
      nine month period ended January 31, 2007, feature film revenues were $165,557
      as
      compared to $393,517 for the nine month period ended January 31, 2006. The
      decrease of $227,960 results primarily from decreased revenues on distribution
      of the Company's feature film library.





Costs
      and
      expenses increased to $609,214 for the nine months ended January 31, 2007 as
      compared to $585,915 during the nine months ended January 31, 2006. This
      increase of $23,299 is due primarily to an increase professional
      fees.





The
      Company had a net loss of $423,907 for the nine month period ended January
      31,
      2007 as compared to net loss of $170,718 for the comparable period ended January
      31, 2006. This increased net loss of $253,189 results primarily from a decrease
      in revenues from distribution of the Company's feature film library and
      increased professional fees.




**Liquidity
      and Capital Resources**





The
      Company's principal source of working capital during the three and nine month
      periods ended January 31, 2007 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, 2007, the Company's net cash used in operating
      activities was $278,832 compared to net cash provided by operating activities
      of
      $687,082 during the comparable period in 2006. At January 31, 2007, the Company
      had cash of $456,993 as compared to $797,630 at January 31, 2006.





**Future
      Commitments**





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


**ITEM
      3. CONTROLS AND PROCEDURES.**





Evaluation
      of Disclosure Controls and Procedures .
      Our
      Chief Executive Officer and Chief Financial Officer performed an evaluation
      of
      our disclosure controls and procedures, which have been designed to permit
      us to
      effectively identify and timely disclose important information. They concluded
      that the controls and procedures were effective as of January 31, 2007 to
      provide reasonable assurance that the information required to be disclosed
      by
      the Company in reports it files under the Exchange Act is recorded, processed,
      summarized and reported within the time periods specified in the rules and
      forms
      of the SEC. While our disclosure controls and procedures provide reasonable
      assurance that the appropriate information will be available on a timely basis,
      this assurance is subject to limitations inherent in any control system, no
      matter how well it may be designed or administered.




Changes
      in Internal Controls .
      There
      was no change in our internal control over financial reporting during the
      quarter ended January 31, 2007, that materially affected, or is reasonably
      likely to materially affect, our internal control over financial
      reporting.




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**PART
      II - OTHER INFORMATION**





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





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





On
      September 9, 2004, the Company filed suit in the Circuit Court of the 17th
      Judicial Circuit in and for Broward County, Florida, against Mr. Michael
      Berresheim, a former officer and director of the Company, Mr. Eric Ottens,
      and
      two company’s under the control of Messrs Berresheim and Ottens (Kings Road
      Entertainment, Inc., a Florida Corporation and Kings Road to Fame, Inc.). The
      suit filed by the Company, was seeking the return of money illegally obtained
      and converted from the Company, an accounting, and an injunction from further
      use of its trade name.





On
      April
      18, 2006, the Court entered a final default judgment in favor of the Company,
      awarded damages in the amount of $332,534 and entered a permanent injunction
      requiring Berresheim to cease and desist all use of the name Kings Road in
      any
      capacity. The Court also issued a Writ of Execution on July 13, 2006, and the
      Defendant filed an appellate brief to appeal the judgment on October 25, 2006.





Subsequent
      to this report, on March 19, 2007, this matter was resolved with the execution
      of a Settlement Agreement and Mutual General Release (see below: “Settlement of
      Certain Lawsuits and Entry into a Material Definitive Agreement“).





*Claim
      on the Company from MBO Media GmbH*





On
      March
      29, 2005, the Company received a communication from an attorney- representing
      MBO Media GmbH and its managing director Mr. Michael Berresheim (former director
      and officer of the Company) demanding the Company's repayment of leasing costs
      of 179,884 Euro for the video and film editing suite Avid Symphony V 2.0 as
      allegedly paid by her client MBO Media GmbH (formerly MBO Musikverlags GmbH).
      The Company has no record of any such claim, invoice, or corresponding
      leasing/repayment agreement between the parties in its files and has passed
      this
      correspondence on to its counsel, who repudiated this claim on April 4, 2005.
      Subsequent to this report, this claim was included in the counterclaims filed
      by
      defendant Berresheim with his affirmative defenses filed on July 26, 2005 (see
      above Claim against Michael Berresheim, Eric Ottens, et al.).





Subsequent
      to this report, on March 19, 2007, this matter was resolved with the execution
      of a Settlement Agreement and Mutual General Release (see below: “Settlement of
      Certain Lawsuits and Entry into a Material Definitive Agreement“).





*Shareholder
      Demand for Inspection of Company Records*





On
      March
      30, 2005 the Company received a letter from an attorney representing Kings
      Road
      Enterprises Corp. (formerly Parkland AG, an entity controlled by a former
      Director and Officer of the Company), seeking to inspect the Corporation's
      stock
      ledger, list of its stockholders, and its other books and records and to make
      copies or extracts there from, all as provided in Section 220 of the Delaware
      General Corporation Law , which states that the purpose of the demand and the
      inspection is (i) to make a determination as to the value of the Stockholder's
      stock in the Corporation, (ii) to investigate the Corporation's compliance
      with
      applicable laws, including but not limited to applicable corporate and
      securities laws and its own organizational and operational requirements as
      may
      be set forth in the books and records, based upon a reasonable suspicion of
      mismanagement and/or self-dealing due, among other things, to the apparent
      sale
      of stock to certain stockholders for less than its actual value. The Company's
      counsel has complied with this demand.





Subsequent
      to this report, on March 19, 2007, this matter was resolved with the execution
      of a Settlement Agreement and Mutual General Release (see below: “Settlement of
      Certain Lawsuits and Entry into a Material Definitive Agreement“).




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Settlement
      of Certain Lawsuits and Entry into a Material Definitive
      Agreement





Subsequent
      to the period covered by this report, on March 19, 2007, the Company entered
      into a Settlement Agreement and Mutual General Release (the “Settlement
      Agreement”) with the following parties: MBO Musikverlags GmbH, a German limited
      liability company (“MBO Musikverlag”); MBO Media GmbH, a German limited
      liability company (“MBO Media”) and its new owner, as of March 2006, Tacitus
      Treuhand, Switzerland (“Tacitus”); Fabulous AG, a Nevada corporation
      (“Fabulous”), formerly Kings Road Entertainment Corp. (“KREC”), and prior to
      that Parkland AG (“Parkland”); Metropolitan Worldwide, Inc., a Nevada
      corporation (“Metropolitan”); Donal C. Tunnell (“Tunnell”); William E. Ottens
      (“Ottens”); and Lothar Michael Berresheim (“Berresheim”) individually and in his
      capacity as an officer, director, manager, member and/or shareholder of MBO
      Musikverlag, MBO Media, Tacitus, Fabulous/KREC/Parkland, KRFame, Florida and
      KREN Florida, including any affiliates, subsidiaries, parents and other entities
      controlled, directly or indirectly by Berresheim, (collectively the “Berresheim
      Entities”). A Settlement and Mutual Release was also concluded with Ms. Beate C.
      Mueller.





The
      Settlement Agreement calls for Berresheim to deliver to the Company three (3)
      original certificate representing One Million Four Hundred Fifty-One Thousand
      Two Hundred Forty-Seven (1,451,247) shares of the Company’s Common Stock
      (“Settlement Shares”), these being all the shares held or beneficially owned by
      Berresheim. Further, the parties agreed to the following: discharges and
      releases of Berresheim, Tunnell, Ottens, the Berrsheim Entities, and their
      officers, directors, managers, members, shareholders, assigns, attorneys,
      agents, representatives, principals, predecessors and successors in interest
      (collectively, the “Berresheim Parties”), from any and all claims, demands,
      obligations, or causes of action of whatever nature or description; Dismissal
      of
      the Fourth DCA Litigation Appeal; Dismissal of the MBO Litigation; Dismissal
      of
      the Tunnell Litigation; Dissolution of KRFame Florida and KREN Florida;
      Withdrawal of Fictitious Name Filing of Regal Productions; Acknowledgement
      and
      Agreement to Refrain from Use of Kings Road Name by Berresheim; Transfer and
      Assignments of any Rights to the Kingsroadentertainment.com Website Ownership
      and Content; Agreement to Refrain from Acquiring Shares of Kings Road Stock
      by
      Berresheim Entities and Berresheim; Agreement to Refrain from Soliciting,
      Enticing, Encouraging or Assisting Claims of Litigation Against Kings Road
      by
      Berresheim and Berresheim Entities; and Non-Solicitation of Vendors, Customers
      or Employees of Kings Road by Berresheim. For consideration of the above,
      including the surrender of the Settlement Shares, the Company will pay Mr.
      Berresheim Sixty Thousand Dollars ($60,000) upon the receipt of the Settlement
      Shares by the Company’s Stock Transfer Agent, U.S. Stock Transfer Corporation;
      the transfer and quitclaim from the Company to Berresheim of the rights to
      the
      script entitled “Babylon Blues;” Agreement to refrain from opposing Berresheim’s
      motion to vacate the KREN Litigation; Dismissal of the MBO Litigation; Agreement
      to Refrain from Acquiring Shares of Metropolitan; Agreement to Refrain from
      Soliciting, Enticing, Encouraging or Assisting Claims of Litigation Against
      Berresheim.





The
      foregoing event was reported in an 8-K filed on April 23, 2007





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





Subsequent
      to this report, 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.
      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.




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Subsequent
      to this report, on July 24, 2007, the same shareholder, 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.





Subsequent
      to this report, 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. 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 John M. Burnley. The foregoing event was filed in an 8-K on July
      18,
      2008.





**Other
      litigation**





As
      of
      January 31, 2007, 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.





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





None
      in
      the three month period ending January 31, 2007.





**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 as of January 31,
      2007.





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





On
      December 3, 2006 the Board of Directors, by resolution, increased the number
      of
      seats on the Board of Directors from five (5) to seven (7). On December 20,
      2006, the Board of Directors appointed Mr. Brad Hoffman to serve as a member
      of
      the Board of Directors until the next annual meeting of Shareholders or until
      another candidate is elected and qualified. On December 21, 2006, the Board
      of
      Directors unanimously resolved to remove Mr. H. Martin DeFrank as President,
      Chief Operating Officer and de-facto Chief Financial Officer of the Company
      and
      appointed director, Mr. Philip M. Holmes, to serve as Interim Chief Financial
      Officer. Additionally, Mr. Emanuel D. Neuman was elected to serve as a member
      of
      the Board of Directors until the next annual meeting of the Shareholders or
      until another candidate is elected and qualified. These events were reported
      in
      an 8-K filed on April 23, 2007.





On
      December 29, 2006, the Board of Directors resolved to appoint F. Robbe
      International Attorney at Law as its new corporate counsel in place of the
      Chachas Law Group. This event was reported in an 8-K filed on April 23,
      2007.




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





**INDEX
      TO EXHIBITS**


**OF**


**KINGS
      ROAD ENTERTAINMENT INC.**





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





**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: July
              23, 2008
            By:
            /s/ Philip
              HolmesPhilip Holmes,
              President




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