**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 July 31, 2005**


**-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 July 31, 2005 was 6,957,740 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.











**KINGS
      ROAD ENTERTAINMENT, INC.**


**FORM
      10-QSB**


**Quarter
      Ended July 31, 2005**





**TABLE
      OF CONTENTS**


**PAGE****FINANCIAL INFORMATION**Item 1.
              Consolidated
                  Financial StatementsConsolidated
                  Balance Sheets as of July 31, 2005 and April 30, 2005
              F-2Consolidated
                  Statements of Operations for the Three Months Ended July 31, 2005
                  and
                  2004
              F-3Consolidated
                  Statements of Cash Flows for the Three Months Ended July 31, 2005
                  and
                  2004
              F-4Notes
                  to the Consolidated Financial Statements as of July 31,
                  2005
              F-5 – F-9Item 2.
              Managements
                  Discussion and Analysis or Plan of Operation
              12Item 3.
              Controls
                  and Procedures
              13**PART II—OTHER INFORMATION**Item 1.
              Legal
                  Proceedings
              14Item 2.
              Unregistered
                  Sales of Equity Securities and Use of Proceeds
              16Item 3.
              Defaults
                  upon Senior Securities
              16Item 4.
              Submission
                  of Matters to a Vote of Security Holders
              16Item 5.
              Other
                  Information
              16Item 6.
              Exhibits
                  and Reports on Form 8-K
              16**SIGNATURES**
              **16**




Page 2 of 16





**PART
      1: FINANCIAL INFORMATION**





**KINGS
      ROAD ENTERTAINMENT, INC.**





**INDEX
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(UNAUDITED)**


**Page**Consolidated
                  BalanceSheets
                  as of July 31, 2005 and April 30, 2005
              F-2Consolidated
                  Statementsof
                  Operations for the three months ended July 31,2005
                  and 2004
              F-3Consolidated
                  Statements of Cash Flowsfor
                  the three months ended July 31,2005
                  and 2004
              F-4Notes
                  to Consolidated Financial Statements as of July 31, 2005
              F-5 to F-9





F-1





**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      BALANCE SHEETS**


**AS
      OF JULY 31, 2005 AND APRIL 30, 2005**





July 31, 2005
            
            April 30, 2005(unaudited)
            
            (audited)**ASSETS****Current
                assets:**Cash
                and cash equivalents
            
            $
            66,286
            
            $
            112,114Restricted
                cash
            
            
            61,162
            
            
            60,386Accounts
                receivable, trade
            
            
            56,317
            
            
            69,764Prepayments
                and other current assets
            
            
            0
            
            
            4,500Total
                current assets
            
            
            183,765
            
            
            246,764OTHER
                ASSETSFilm
                development costs, net
            
            
            70,037
            
            
            70,037Total
                Other Assets
            
            
            70,037
            
            
            70,037**TOTAL
                ASSETS**
            
            $
            253,802
            
            $
            316,801**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**Current
                liabilities:Accounts
                payable
            
            $
            201,099
            
            $
            187,786Accrued
                expenses
            
            
            287,799
            
            
            256,077Deferred
                revenue
            
            
            182,576
            
            
            215,508Line
                of credit
            
            
            60,000
            
            
            60,000Liabilities
                from discontinued operations
            
            
            4,000
            
            
            4,000Total
                current liabilities
            
            
            735,474
            
            
            723,371Stockholders’
                equity:Common
                stock; 12,000,000 shares authorized at $0.01 par value; 6,957,740
                shares
                issued and outstanding at July 31and April 30, 2005
            
            
            69,577
            
            
            69,577Additional
                paid-in capital
            
            
            25,211,655
            
            
            25,211,655Accumulated
                deficit
            
            
            (25,687,802
            )
            
            (25,687,802
            )Net
                Profit (Loss) for Period
            
            
            (75,102
            )
            
            0Total
                stockholders’ equity (deficit)
            
            
            (481,672
            )
            
            (406,570
            )**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY**
            
            $
            253,802
            
            $
            316,801





See
      accompanying notes to condensed consolidated financial statements.




F-2





**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**FOR
      THE THREE MONTHS ENDED JULY 31, 2005 AND 2004**


**(Unaudited)**





Three
                months ended July 31,2005
            
            2004**REVENUES**Feature
                films
            
            $
            96,213
            
            $
            66,194**TOTAL
                REVENUE**
            
            
            96,213
            
            
            66,194**OPERATING
                EXPENSES:**General
                and administrative
            
            
            185,215
            
            
            188,869Total
                operating expenses
            
            
            185,215
            
            
            188,869**INCOME
                (LOSS) FROM OPERATIONS**
            
            
            (89,002
            )
            
            (122,675
            )**OTHER
                INCOME (EXPENSE):**Other
                income
            
            
            13,910
            
            
            0Interest
                income
            
            
            890
            
            
            17Interest
                expense
            
            
            (900
            )
            
            0Total
                Other Income (Expense)
            
            
            13,900
            
            
            17**INCOME
                (LOSS) BEFORE INCOME TAXES**
            
            
            (75,102
            )
            
            (122,658
            )**PROVISION
                FOR INCOME TAXES**
            
            
            0
            
            
            0**NET
                INCOME (LOSS)**
            
            $
            (75,102
            )
            $
            (122,658
            )Net
                income (loss) per share – Basic
            
            $
            (0.01
            )
            $
            (0.03
            )Basic
                weighted average number of shares outstanding during the
                period
            
            
            6,957,740
            
            
            3,864,390





See
      accompanying notes to consolidated financial statements.





F-3





**KINGS
      ROAD ENTERTAINMENT, INC.**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**FOR
      THE THREE MONTHS ENDED JULY 31, 2005 AND 2004**


**(Unaudited)**


Three months ended July 31,2005
              
              2004**CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Income
                  (loss) from continuing operations
              
              $
              (75,102
              )
              $
              (122,658
              )Adjustments
                  to reconcile income (loss) from continuing operations to net cash
                  (used
                  in) provided by operating activities:Depreciation
                  and amortization
              
              
              0
              
              
              0Change
                  in operating assets and liabilities:Accounts
                  receivable, trade
              
              
              13,447
              
              
              50,346Prepayments
                  and other current assets
              
              
              4,500
              
              
              0Accounts
                  payables
              
              
              13,313
              
              
              81,640Accrued
                  expenses
              
              
              31,722
              
              
              23,285Deferred
                  revenue
              
              
              (32,932
              )
              
              (5,000
              )Net
                  cash provided by (used in) operating activities
              
              
              (45,052
              )
              
              27,613**CASH
                  FLOWS FROM FINANCING ACTIVITIES:**(Increase)
                  decrease in restricted cash
              
              
              (776
              )
              
              0Net
                  cash provided by (used in) financing activities
              
              
              (776
              )
              
              0**NET
                  CHANGE IN CASH AND CASH EQUIVALENTS**
              
              
              (45,828
              )
              
              27,613**CASH
                  AND CASH EQUIVALENTS, BEGINNING OF PERIOD**
              
              
              112,114
              
              
              21,915**CASH
                  AND CASH EQUIVALENTS, END OF PERIOD**
              
              $
              66,286
              
              $
              49,528





See
      accompanying notes to condensed consolidated financial statements.




F-4





**KINGS
      ROAD ENTERTAINMENT, INC.**


**Notes
      to Consolidated Financial Statements**


**As
      of July 31, 2005**





**NOTE
      1 – NATURE OF OPERATIONS**





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





The
      Company’s two wholly-owned subsidiaries include KRTR, Inc., (a New York
      corporation), and Ticker, Inc., (a California corporation). KRTR, Inc. had
      ceased operations in 2001 and was dissolved during the quarter ending July
      31,
      2005. Ticker, Inc. was inactive during the three months ending July 31, 2005.
      The consolidated financial statements include those of Kings Road Entertainment,
      Inc. and its subsidiaries.




**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, 2005, 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 July 31, 2005, and the results of operations and cash flows for the three
      months ended July 31, 2005 have been included. The results of operations for
      the
      three months ended July 31, 2005, 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.
      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.





F-5




**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
      July 31, 2005, restricted cash totaled $61,162, 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 July
      31, 2005, 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 July 31, 2005, consisted of various items of office
      equipment with a historical cost of $5,993 and a $0 net book value. All of
      these
      items were fully depreciated at July 31, 2005.





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





The
      Company has adopted the provisions of SFAS No. 121, “Accounting for the
      Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of” and
      SFAS No. 142 "Goodwill and Other Intangible Assets." These statements require
      that long-lived assets and certain identifiable intangibles be reviewed for
      impairment whenever events or changes in circumstances indicate that the
      carrying amount of an asset may not be recoverable. Recoverability of assets
      to
      be held and used is measured by a comparison of the carrying amount of an asset
      to future net cash flows expected to be generated by the asset. If such assets
      are considered to be impaired, the impairment to be recognized is measured
      by
      the amount by which the carrying amounts of the assets exceed their respective
      fair values. Assets to be disposed of are reported at the lower of the carrying
      amount of fair value less the costs to sell.





c.
      Film
      Development Costs





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




F-6


At
      July
      31, 2005, film development costs totaled $70,037, which was net after an
      allowance of $30,000. During the three month period ended July 31, 2005, no
      film
      development costs were determined to be impaired.




**NOTE
      5 – LIABILITIES**





a. Deferred
      Revenue





As
      of
      July 31, 2005, the Company has deferred revenue totaling $182,576. The Company
      is following the guidelines of SOP 00-02 for film production and distribution.





b.
      Line
      of Credit ****





On
      March
      8, 2005, the Company renewed its revolving line of credit loan with a beginning
      principal balance of $60,000, secured by a $60,000 certificate of deposit (see
      Note 3). During the period ending July 31, 2005, the line of credit accrued
      interest at a rate of 4.55% per annum. The Company’s credit line will expire on
      March 1, 2006 unless renewed.





c.
      Discontinued Operations





During
      the period ending July 31, 2005, the Company dissolved its KRTR subsidiary.
      KRTR
      has been inactive and had no operations for the past two years. As of July
      31,
      2005, the Company has $4,000 of accrued liabilities outstanding for its
      discontinued operations.





**NOTE
      6 - COMMITMENTS AND CONTINGENCIES**





a.
      Rent





The
      Company rents a three-room apartment located on Doheny Drive, Beverly Hills,
      California as its registered office. From June 1, 2005 the rent for this
      facility increased by 4.5%. Additionally, the Company rents flexible storage
      space for its archives.  Rent expense for the Company's office and archive
      storage space was $7,078 and $7,043 during the three months ending July 31,
      2005
      and 2004, 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, 2005, and in our
      other filings with the Securities and Exchange Commission pursuant to the
      Securities Exchange Act of 1934, as amended. At
      July 31, 2005, we were involved with various legal matters, including
      litigation with former officers, directors, and related parties. Although the
      ultimate resolution of certain matters cannot be determined at this time, we
      do
      not believe that such matters, individually or in the aggregate, will have
      a
      material adverse effect on our future consolidated results of operations, cash
      flows or financial condition.





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





F-7




c.
      Other
      Commitments and Contingencies





In
      the
      ordinary course of business, the Company has or 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
      July
      31, 2005, the Company had 12,000,000 authorized shares of common stock, of
      which
      6,957,740 shares were issued and outstanding. During the three month period
      ended July 31, 2005, 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
            
            
            3-6
                monthsAll
                international markets
            
            
            1-10
                yearsDomestic
                home video
            
            
            6
                months
            
            
            3-12
                monthsDomestic
                cable/pay television
            
            
            12-18
                months
            
            
            18
                monthsDomestic
                syndicated/free television
            
            
            24-48
                months
            
            
            1-n
                years





**N0TE
      9 – DEPRECIATION AND AMORTIZATION**





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





**NOTE
      10 - GOING CONCERN**





The
      Company's consolidated financial statements are prepared using accounting
      principles generally accepted in the United States of America applicable to
      a
      going concern which contemplates the realization of assets and liquidation
      of
      liabilities in the normal course of business. However at July 31, 2005, the
      Company has a deficit in working capital of $551,709, has an accumulated deficit
      of approximately $25,688,000, 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
      historically produced negative cash flow and plans to raise capital through
      equity-based investment instruments, which will provide funding for the
      development of future projects and operating expenses.




F-8




**NOTE
      11 - SUBSEQUENT EVENTS**





a.
      Distribution Agreement





On
      September 30, 2004, the Company executed an Amendment Agreement with Lions
      Gate
      Films, Inc., ("LGF"), extending and amending the original Agreement dated August
      1, 1998. This Agreement, effective August 20, 2004 through August 30, 2015,
      stipulates that LGF pay the Company a guarantee (in the form of an advance
      against royalties) of $1.2 million; $250,000 of which was payable upon execution
      of the Agreement, and the remaining $950,000 payable on September 1, 2005.
      In
      addition, the Company is entitled to certain royalties related to home video
      distribution.





Subsequent
      to the period covered by this report, in September, 2005, the Company received
      the remaining $950,000 due pursuant to this distribution agreement.





b. Option/Purchase
      Agreement





Subsequent
      to the period covered by this report, on August 16, 2005, the Company received
      $90,000 (less 10% agency commission of $9,000) from New Line Cinema, as an
      option fee, applicable against the $900,000 purchase price, pertaining to the
      Company's rights to the movie production, All of Me. The option fee entitles
      New
      Line Cinema to the film rights of the remake of All of Me, for a 16-month option
      period from June 16, 2005 and expiring on October 11, 2006. Should New Line
      Cinema elect to move forward with the remake, it will be required to pay the
      Company an additional $810,000 (less an agency fee commission of 10%) within
      the
      16-month option period. New Line has the right to extend this option period
      for
      an additional 18-month period upon payment of an additional $90,000, which
      shall
      be non-applicable against the purchase price. As per the Company’s letter of
      agreement with Eclectic Filmworks, LLC of July 1, 2005, all net proceeds are
      to
      be equally shared with Eclectic Filmworks, LLC., and the Company shall be
      granted an official producer credit.





c.
      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.




F-9





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





The
      following review concerns the periods ended July 31, 2005 and July 31, 2004,
      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, 2005.





*Forward
      Looking Statements*





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





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





-
      the
      volatile and competitive nature of the film industry,


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


-
      the
      uncertainties surrounding technological change of the industry,


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


-
      the
      success of marketing efforts by third parties,


-
      the
      changing demands of customers and


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





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





**Recent
      Developments**





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





On
      July
      1, 2005, the Company executed an agreement with Eclectic Filmworks LLC. to
      market the rights to produce a remake of All of Me to New Line Cinema. Per
      the
      terms of this agreement, all net proceeds would be shared equally between the
      Company and Eclectic Film Works.





Subsequent
      to the period covered by this report, **** on
      October 6, 2006, New Line Cinema paid the Company $90,000 to extend its option
      to develop a remake of All of Me for an additional 18-month period, ending
      April
      11, 2008. The $90,000 option extension fee was split equally with Eclectic
      Filmworks LLC, as per a letter of agreement executed on July 1, 2005.




Page 12 of 16





**Results
      of Operations**





**The
      Three Months Ended July 31, 2005 vs. the Three Months Ended July 31, 2004**





For
      the
      quarter ended July 31, 2005, feature film revenues were $96,213 as compared
      to
      $66,194 for the quarter ended July 31, 2004. The increase of $30,019 results
      primarily from increased revenue from distribution of the Company's feature
      film
      library.





Costs
      and
      expenses decreased to $185,215 for the quarter ended July 31, 2005 as compared
      to $188,869 during the quarter ended July 31, 2004. This decrease of $3,654
      primarily results from a slight decrease in professional fees.





The
      Company had a net loss of $75,102 for the quarter ended July 31, 2005 as
      compared to a net loss of $122,658 for the quarter ended July 31, 2004. This
      decreased loss of $47,556 results primarily from a marked increase in film
      revenues and a slight decrease in professional fees.





**Liquidity
      and Capital Resources**





For
      the
      three months ended July 31, 2005, the Company's net cash used in operating
      activities was $45,052 compared to net cash provided by operating activities
      of
      $27,613 during the comparable period in 2004. At July 31, 2005, the Company
      had
      cash of $66,286 as compared to $49,528 at July 31, 2004.





The
      Company's principal source of working capital during the three month period
      ended July 31, 2005 was motion picture royalty income. The Company does not
      currently have sufficient capital to fund its operations. If the Company fails
      to raise additional capital, increase revenues, or sell certain of its assets,
      the Company will, in all likelihood, be forced to significantly reduce its
      operations or liquidate.





Subsequent
      to the date of this report, the Company received a cash inflow of $950,000
      pertaining to its Distribution Agreement with Lions Gate Films. Management
      believes this inflow will be instrumental in allowing the Company to implement
      its business plan, as well as fund existing operations and service its debt
      requirements.





**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 July 31, 2005 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 .
      On June
      9, 2005, in order to clarify and limit individual Officer’s authority, the
      Company’s Board of Directors unanimously adopted a policy wherein no individual
      officer or employee of the Company shall be authorized to commit to any material
      binding liability and/or contractual obligation without full prior disclosure
      to
      and the prior consent and approval of the Board. This policy shall include,
      but
      is not limited to, such transactions as a sale or disposal of Company assets,
      entering into any employment and/or retainer agreement, authorizing exclusive
      representation of the Company and/or its properties by any third party, any
      material purchase or financial commitment to a third party. Other than the
      implementation of this policy, there were no other changes in our internal
      control over financial reporting during the quarter ended July 31, 2005, that
      materially affected, or is reasonably likely to materially affect, our internal
      control over financial reporting.




Page 13 of 16





**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.





Subsequent
      to this report, 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 dated March 22, 2005 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.




Page 14 of 16




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“).





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





**Other
      litigation**





As
      of
      July 31, 2005, 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.





Page 15 of 16





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





None
      in
      the three month period ending July 31, 2005





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





None





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





No
      matter
      was submitted to a vote of our shareholders during the quarter ended July 31,
      2005.





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





None.





**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 17, 2008
            By:
            /s/
                Philip HolmesPhilip
                Holmes, President





Page 16 of 16