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

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

|                                                |  |                            
|----------------------------------------------- |  | ---------------------------
|For the Quarterly Period Ended October 31, 2001 |  | Commission File No. 0-14234

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

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

5743 N. W. 66th Avenue
Parkland, FL 33067
(Address of principal executive office)

Issuers telephone number: (954) 344-6168

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

YES [X] NO [    ]

As of December 14, 2001, the Registrant had 3,664,390 shares of its common
stock outstanding.

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





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TABLE OF CONTENTS



|                               |                                                                                               |                                            |  |  |  |  |  | 
|------------------------------ | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I  FINANCIAL INFORMATION
|                               | Item 1  Financial Statements                                                                
|                               |                                                                                               | CONSOLIDATED BALANCE SHEET                
|                               |                                                                                               | CONSOLIDATED STATEMENTS OF OPERATIONS     
|                               |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS     
|                               |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|                               | Item 2  Managements Discussion and Analysis of Financial Position and Results of Operations
|PART II  OTHER INFORMATION   
|                               | Item 6  Exhibits and Reports on Form 8-K                                                    
|SIGNATURES                    



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PART I  FINANCIAL INFORMATION




Item 1  Financial Statements




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

|                                           |                                                                                                     |                            |         |               |          |  
|------------------------------------------ | --------------------------------------------------------------------------------------------------- | -------------------------- | ------- | ------------- | -------- | -
|                                           |                                                                                                     |                            |         | AS OF        
|                                           |                                                                                                     |                            |         | OCT. 31, 2001
|                                           |                                                                                                     |                            |         |              
|ASSETS                                     |                                                                                                     |                            |         |              
|                                           | Cash and Cash Equivalents                                                                           |                            | $       | 66,998        |         
|                                           | Film Costs                                                                                          |                            |         | 146,923       |         
|                                           | Fixed Assets                                                                                        |                            |         | 1,848         |         
|                                           |                                                                                                     |                            |         |              
|TOTAL ASSETS                               |                                                                                                     | $                          | 215,769 |              
|                                           |                                                                                                     |                            |         |              
|LIABILITIES AND STOCKHOLDERS EQUITY       |                                                                                                     |                            |         |              
|LIABILITIES                                |                                                                                                     |                            |         |              
|                                           | Accounts Payable                                                                                    |                            | $       | 262,804       |         
|                                           | Note Payable                                                                                        |                            |         | 19,000        |         
|                                           | Reserve for Discontinued Operations                                                                 |                            |         | 50,000        |         
|                                           | Accrued Expenses                                                                                    |                            |         | 19,433        |         
|                                           | Deferred Revenue                                                                                    |                            |         | 2,300         |         
|                                           |                                                                                                     |                            |         |              
|                                           |                                                                                                     | TOTAL LIABILITIES          |         |               | 353,537  |  
|COMMITMENTS AND CONTINGENCIES              |                                                                                                     |                            |         |              
|STOCKHOLDERS EQUITY                       |                                                                                                     |                            |         |              
|                                           | Common Stock, $.01 par value, 12,000,000 shares
authorized, 3,664,390 shares issued and outstanding |                            |         | 36,644        |         
|                                           | Additional Paid-In Capital                                                                          |                            |         | 24,906,656    |         
|                                           | Deficit                                                                                             |                            |         | (25,081,068   | )       
|                                           |                                                                                                     |                            |         |              
|                                           |                                                                                                     | TOTAL STOCKHOLDERS EQUITY |         |               | (137,768 | )
|                                           |                                                                                                     |                            |         |              
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |                                                                                                     | $                          | 215,769 |              
|                                           |                                                                                                     |                            |         |              

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

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

|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |           |  
|--------------------------------- | ------------------------------------------------------------- |  | -------------- | --------- | -------------- |  | ------- | --------- | ---- |  | ------- | --------- | - |  | ------- | --------- | -
|                                  |                                                               |  | THREE MONTHS   |           | SIX MONTHS    
|                                  |                                                               |  | ENDED OCT. 31, |           | ENDED OCT. 31,
|                                  |                                                               |  |                |           |               
|                                  |                                                               |  | 2001           |           | 2000           |  | 2001    |           | 2000
|                                  |                                                               |  |                |           |                |  |         |           |     
|REVENUES                          |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | Feature Films                                                 |  | $              | 140,241   |                |  | $       | 278,701   |      |  | $       | 290,442   |   |  | $       | 971,266   |  
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  |                                                               |  | 140,241        |           |                |  | 278,701 |           |      |  | 290,442 |           |   |  | 971,266 |          
|COSTS AND EXPENSES                |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | Costs Related to Revenue                                      |  |                | 0         |                |  |         | 40,498    |      |  |         | 0         |   |  |         | 266,191   |  
|                                  | Selling Expenses                                              |  |                | 5,500     |                |  |         | 0         |      |  |         | 11,034    |   |  |         | 35,585    |  
|                                  | General & Administrative Expenses                             |  |                | 137,839   |                |  |         | 149,844   |      |  |         | 346,150   |   |  |         | 306,493   |  
|                                  | Impairment of Goodwill                                        |  |                | (52,090   | )              |  |         | 0         |      |  |         | (67,965   | ) |  |         | 0         |  
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  |                                                               |  | 195,429        |           |                |  | 190,342 |           |      |  | 425,149 |           |   |  | 608,269 |          
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | OPERATING (LOSS)/PROFIT                                       |  |                | (55,188   | )              |  |         | 88,359    |      |  |         | (134,707  | ) |  |         | 362,997   |  
|OTHER INCOME/(EXPENSE)            |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | Adjustment in Valuation of Investments                        |  |                | (30,000   | )              |  |         | 0         |      |  |         | (30,000   | ) |  |         | 0         |  
|                                  | Interest Expense                                              |  |                | (339      | )              |  |         | (566      | )    |  |         | (678      | ) |  |         | (566      | )
|                                  | Interest Income                                               |  |                | 0         |                |  |         | 1,890     |      |  |         | 38        |   |  |         | 7,668     |  
|                                  | Gain From Cancellation of Indebtedness                        |  |                | 0         |                |  |         | 126,313   |      |  |         | 0         |   |  |         | 126,313   |  
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  |                                                               |  | (30,339        | )         |                |  | 127,637 |           |      |  | (30,640 | )         |   |  | 133,415 |          
|                                  | (LOSS)/INCOME BEFORE DISCONTINUED
OPERATIONS AND INCOME TAXES |  |                | (85,527   | )              |  |         | 215,996   |      |  |         | (165,347  | ) |  |         | 496,412   |  
|Loss from Discontinued Operations |                                                               |  | 2,095          |           |                |  | 113,109 |           |      |  | 79,294  |           |   |  | 113,109 |          
|Provision for Income Taxes        |                                                               |  | 0              |           |                |  | 0       |           |      |  | 0       |           |   |  | 1,600   |          
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | NET (LOSS)/INCOME                                             |  |                | ($87,622  | )              |  | $       | 102,887   |      |  |         | ($244,641 | ) |  | $       | 381,703   |  
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | Net
Loss Per Share  Discontinued Operations                  |  |                | ($0.01    | )              |  |         | ($0.03    | )    |  |         | ($0.02    | ) |  |         | ($0.03    | )
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | Net (Loss)/Income Per Share  Basic
and Diluted               |  |                | ($0.02    | )              |  | $       | 0.03      |      |  |         | ($0.07    | ) |  | $       | 0.11      |  
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          
|                                  | Weighted Average Number of Common
Shares  Basic and Diluted  |  |                | 3,664,390 |                |  |         | 3,487,390 |      |  |         | 3,664,390 |   |  |         | 3,487,390 |  
|                                  |                                                               |  |                |           |                |  |         |           |      |  |         |           |   |  |         |          

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

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

|                                                     |                                                                                          |                                            |        |                    |         |      |         |         |          |  
|---------------------------------------------------- | ---------------------------------------------------------------------------------------- | ------------------------------------------ | ------ | ------------------ | ------- | ---- | ------- | ------- | -------- | -
|                                                     |                                                                                          |                                            |        | FOR THE SIX MONTHS
|                                                     |                                                                                          |                                            |        | ENDED OCTOBER 31, 
|                                                     |                                                                                          |                                            |        |                   
|                                                     |                                                                                          |                                            |        | 2001               |         | 2000
|                                                     |                                                                                          |                                            |        |                    |         |     
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                          |                                            |        |                    |         |      |         |        
|                                                     | Net (Loss)/Income                                                                        |                                            |        | ($244,641          | )       |      | $       | 381,703 |         
|                                                     | Adjustments to reconcile Net (Loss)/Income to Net Cash
Provided by Operating Activities: |                                            |        |                    |         |      |         |         |         
|                                                     |                                                                                          | Depreciation and Amortization              |        |                    | 714     |      |         |         | 59,785   |  
|                                                     |                                                                                          | Impairment of Goodwill                     |        |                    | 67,965  |      |         |         | 0        |  
|                                                     |                                                                                          | Adjustment in Valuation of Investments     |        |                    | 30,000  |      |         |         | 0        |  
|                                                     |                                                                                          | Gain from Cancellation of Indebtedness     |        |                    | 0       |      |         |         | (126,313 | )
|                                                     | Changes in Assets and Liabilities:                                                       |                                            |        |                    |         |      |         |         |         
|                                                     |                                                                                          | Decrease/(Increase) in Accounts Receivable |        |                    | 52,890  |      |         |         | (177,328 | )
|                                                     |                                                                                          | Decrease/(Increase) in Inventory           |        |                    | 34,071  |      |         |         | (203,607 | )
|                                                     |                                                                                          | Decrease/(Increase) in Prepaid Expenses    |        |                    | 49,631  |      |         |         | (348,554 | )
|                                                     |                                                                                          | Increase in Security Deposits              |        |                    | 0       |      |         |         | (28,384  | )
|                                                     |                                                                                          | Increase in Other Assets                   |        |                    | 0       |      |         |         | (446     | )
|                                                     |                                                                                          | Increase (Decrease) in Accounts Payable    |        |                    | 109,435 |      |         |         | 464,994  |  
|                                                     |                                                                                          | Decrease in Accrued Expenses               |        |                    | (36,940 | )    |         |         | 0        |  
|                                                     |                                                                                          | Decrease in Deferred Revenue               |        |                    | 0       |      |         |         | (1,062   | )
|                                                     |                                                                                          |                                            |        |                    |         |      |         |        
|                                                     | NET CASH AND CASH EQUIVALENTS PROVIDED BY
OPERATING ACTIVITIES                           |                                            |        | 63,125             |         |      |         | 20,788  |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                          |                                            |        |                    |         |      |         |        
|                                                     | Purchases of Other Investments                                                           |                                            |        | (30,000            | )       |      |         | (51,000 | )       
|                                                     | Additions to Film Development Costs                                                      |                                            |        | (20,604            | )       |      |         | 0       |         
|                                                     | Theater Production Costs                                                                 |                                            |        | 0                  |         |      |         | (43,165 | )       
|                                                     | Disposal of Fixed Assets                                                                 |                                            |        | 0                  |         |      |         | 4,058   |         
|                                                     |                                                                                          |                                            |        |                    |         |      |         |        
|                                                     | NET CASH AND CASH EQUIVALENTS USED
IN INVESTING ACTIVITIES                               |                                            |        | (50,604            | )       |      |         | (90,107 | )       
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                          |                                            |        |                    |         |      |         |        
|                                                     | Issuance of Note                                                                         |                                            |        | 0                  |         |      |         | 39,000  |         
|                                                     |                                                                                          |                                            |        |                    |         |      |         |        
|                                                     | NET CASH AND CASH EQUIVALENTS PROVIDED
BY FINANCING ACTIVITIES                           |                                            |        | 0                  |         |      |         | 39,000  |         
|                                                     |                                                                                          |                                            |        |                    |         |      |         |        
|NET INCREASE/(DECREASE) IN CASH AND
CASH EQUIVALENTS |                                                                                          |                                            | 12,521 |                    |         |      | (30,319 | )      
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     |                                                                                          |                                            | 54,477 |                    |         |      | 85,159  |        
|                                                     |                                                                                          |                                            |        |                    |         |      |         |        
|CASH AND CASH EQUIVALENTS AT END OF PERIOD           |                                                                                          | $                                          | 66,998 |                    |         | $    | 54,840  |        
|                                                     |                                                                                          |                                            |        |                    |         |      |         |        

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

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

NOTE A  BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial statements. Accordingly, they do not include all of the information
and disclosures required for annual financial statements. These financial
statements should be read in conjunction with the financial statements and
related footnotes for the year ended April 30, 2001 included in the Kings Road
Entertainment, Inc. (Company or Registrant) annual report on Form 10-KSB
for that period.

In the opinion of the Companys management, all adjustments (consisting of
normal recurring accruals) necessary to present fairly the Companys financial
position at October 31, 2001 and the results of its operations and cash flows
for the six month periods ended October 31, 2001 and 2000 have been included.

The results of operations for the three month period ended October 31, 2001 are
not necessarily indicative of the results to be expected for the full fiscal
year. For further information, refer to the financial statements and footnotes
thereto included in the Companys annual report on Form 10-KSB for the year
ended April 30, 2001.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates.

Certain amounts for the three and six month periods ended October 31, 2000 have
been reclassified to conform to the presentation of the October 31, 2001
amounts. The reclassifications have no effect on reported net income.

NOTE B  FILM COSTS

Film costs consist of film projects actively in development at October 31,
2001.

NOTE C  NOTES PAYABLE

In connection with the acquisition of Animal Town, Inc. (Animal Town) on
August 31, 2000, the Company issued a note to the seller of the common stock of
Animal Town in the principal amount of $39,000, bearing interest at 7% per
annum with an initial maturity date of November 30, 2000. The outstanding
balance of the note at October 31, 2001 was $20,470 consisting of principal of
$19,000 plus accrued and unpaid interest of $1,470. The parties have agreed to
extension of the maturity date of the note to November 30, 2001.

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

NOTE D  INCOME TAXES

A reconciliation of the provision for income taxes to the expected income tax
expense at the statutory federal tax rate of 34% is as follows:

|                                        |  |                  |          |                  |  |   |          |  
|--------------------------------------- |  | ---------------- | -------- | ---------------- |  | - | -------- | -
|                                        |  | Six Months Ended |          | Six Months Ended
|                                        |  | Oct. 31, 2001    |          | Oct. 31, 2000   
|                                        |  |                  |          |                 
|Computed Expected Tax at Statutory Rate |  |                  | ($83,178 | )                |  | $ | 129,7811 |  
|State and Local Taxes                   |  |                  | 0        |                  |  |   | 1,600    |  
|Valuation Allowance                     |  |                  | 83,178   |                  |  |   | (129,781 | )
|                                        |  |                  |          |                  |  |   |          |  
|                                        |  | $                | 0        |                  |  | $ | 1,600    |  
|                                        |  |                  |          |                  |  |   |          |  

For federal income tax purposes, the Company has available net operating loss
carryforwards to offset current and future income tax liabilities.

NOTE E  LITIGATION AND CONTINGENCIES

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

NOTE F  DISCONTINUED OPERATIONS

During the three months ended October 31, 2001, the Company elected to cease
all operations pertaining to its Animal Town subsidiary. Subsequent to its
purchase by the Company, Animal Towns operations proved to be unprofitable and
the Company was unable to determine a reasonable scenario under which Animal
Town could become a profitable entity. Therefore, as of October 31, 2000,
Animal Towns operations have been classified as discontinued and have been
segregated from the Companys viable operations. At the date of
discontinuance, Animal Town had assets totaling $34,584 and liabilities of
$57,329. The Company created a reserve of $45,000 to cover any unforeseen
claims against Animal Town.

During the three months ended October 31, 2001, the Company has elected to
cease all operations pertaining to the stage play End of the World Party (the
Play). Therefore, as of October 31, 2000, all operations pertaining to the
Play have been classified as discontinued and have been segregated from the
Companys viable operations. At the date of discontinuance, the Play had no
assets and liabilities of $15,000. The Company created a reserve of $5,000 to
cover any unforeseen claims related to the Play.

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

NOTE F  DISCONTINUED OPERATIONS (CONTINUED)

The following is a summary of the loss from discontinued operations resulting
from the elimination of the operations of Animal Town and the Play. The
financial statements have been retroactively stated to reflect this event. No
tax benefit has been attributed to the discontinued operations.

|                                      |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |         |        | 
|------------------------------------- | --------------------------------- | --------------------- | ------- | -------------- | - | -------------- | --------- | ------- | ------ | ---- | -------- | ------ | ------ |  | --------- | ------- | ------ | 
|                                      |                                   |                       |         | THREE MONTHS   |   | SIX MONTHS    
|                                      |                                   |                       |         | ENDED OCT. 31, |   | ENDED OCT. 31,
|                                      |                                   |                       |         |                |   |               
|                                      |                                   |                       |         | 2001           |   | 2000           |           | 2001    |        | 2000
|                                      |                                   |                       |         |                |   |                |           |         |        |     
|REVENUES                              |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |        
|                                      |                                   | Catalog Sales         |         | $              | 0 |                |           | $       | 92,750 |      |          | $      | 36,943 |  |           | $       | 92,750 | 
|                                      |                                   | Theatrical Admissions |         |                | 0 |                |           |         | 11,295 |      |          |        | 0      |  |           |         | 11,295 | 
|                                      |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |        
|                                      |                                   |                       | 0       |                |   |                | 104,045   |         |        |      | 36,943   |        |        |  | 104,045   |        
|COSTS AND EXPENSES                    |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |        
|                                      | Costs Related to Revenue          |                       |         | 0              |   |                |           | 124,718 |        |      |          | 29,852 |        |  |           | 124,718 |       
|                                      | General & Administrative Expenses |                       |         | 2,095          |   |                |           | 92,436  |        |      |          | 86,385 |        |  |           | 92,436  |       
|                                      |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |        
|                                      |                                   |                       | 2,095   |                |   |                | 217,154   |         |        |      | 116,237  |        |        |  | 217,154   |        
|                                      |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |        
|NET LOSS FROM DISCONTINUED
OPERATIONS |                                   |                       | ($2,095 | )              |   |                | ($113,109 | )       |        |      | ($79,294 | )      |        |  | ($113,109 | )      
|                                      |                                   |                       |         |                |   |                |           |         |        |      |          |        |        |  |           |        

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Item 2  Managements Discussion and Analysis of Financial Position and Results of Operations

Recent Developments

Subsequent to the fiscal year ended April 30, 1995, the Company has not
produced any new films and has derived 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 August 31, 2000, the Company completed the acquisition of the common
stock of Animal Town, Inc. (Animal Town), a privately-held direct mail order
catalogue company that markets childrens toys, games, crafts and books
specializing in cooperative play and development, animal protection and
environmental awareness. The Company acquired all of the outstanding common
stock of Animal Town in exchange for a combination of approximately $12,000 in
cash, a note payable in the amount of $39,000 to the seller of the common stock
and the issuance of 77,000 shares of the Companys common stock, the exact
number of shares determined based upon a debt-for-equity exchange offer made to
then existing Animal Town creditors that commenced on September 29, 2000 and
was concluded on January 29, 2001. Due to recurring operating losses since
the Companys acquisition of Animal Town and current market conditions, the
Company has discontinued the operations of Animal Town.

Results of Operations

The Three Months Ended October 31, 2001 vs. the Three Months Ended October 31, 2000

For the quarter ended October 31, 2001, feature film revenues were
$140,241 as compared to $278,701 for the quarter ended October 31, 2000. The
decrease of $138,460 results primarily from lower overall royalties on the
Companys feature film library.

Costs and expenses decreased to $143,339 for the quarter ended October 31,
2001 as compared to $190,342 during the quarter ended October 31, 2000. This
decrease of $47,003 results primarily from lower film cost amortization (the
Company has fully amortized the costs related to its film library) partially
offset by increased salaries and professional fees expenses.

During the quarter ended October 31, 2001, the Company recorded an expense
of $30,000 related to an investment in a foreign subsidiary and recorded an
expense of $52,090 related to the impairment of goodwill in connection with the
Companys acquisition of Animal Town. During the quarter ended October 31,
2000, the Company recorded a gain of $126,313 from the cancellation of certain
indebtedness relating to the Companys investment in Immediate Entertainment
Group (Immediate).

The Companys loss from discontinued operations, principally Animal Town,
decreased to $2,095 during the quarter ended October 31, 2001 as compared to
$113,109 during the quarter ended October 31, 2000. This decrease results
primarily from the significantly reduced operations of Animal Town during the
quarter ended October 31, 2001 as compared to the same period last year.

The Company had a net loss of $87,622 for the quarter ended October 31,
2001 compared to net income of $102,887 for the quarter ended October 31, 2000.
This decrease in net income resulted primarily from (i) the gain of $126,313
from the cancellation of certain

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indebtedness relating to the Companys investment in Immediate during the
quarter ended October 31, 2000, (ii) the expense recorded of $30,000 related to
an investment in a foreign subsidiary and (iii) the expense of $52,090 related
to the impairment of good will in connection with the Companys acquisition of
Animal Town. During the quarters ended October 31, 2001 and 2000, the Company
had no provision for income taxes.

The Six Months Ended October 31, 2001 vs. the Six Months Ended October 31, 2000

For the six months ended October 31, 2001, feature film revenues were
$290,442 as compared to $971,266 for the six months ended October 31, 2000.
The decrease of increase of $680,824 principally related to (i) the sale of the
Companys rights to Ticker, a feature film project that had been developed by
the Company during the six months ended October 31, 2000 and (ii) decreased
domestic and foreign distribution revenues from feature films in the Companys
film library during the six months ended October 31, 2001.

Costs related to revenue were $0 for the six months ended October 31, 2001
as compared to $266,191 during the six months ended October 31, 2000 reflecting
the full amortization of costs associated with the Company film library.
Selling expenses decreased to $11,034 during the six months ended October 31,
2001 as compared to $35,585 during the six months ended October 31, 2000
reflecting the significant decrease in the Companys revenues. General and
administrative costs increased to $346,150 for the six months ended October 31,
2001 from $306,493 for the six months ended October 31, 2000. The increase
resulted principally from increased professional fees partially offset by
decreased salaries and insurance expenses.

Interest income decreased significantly to $38 for the six months ended
October 31, 2001 versus $7,668 for the six months ended October 31, 2000
reflecting a decrease in cash and cash equivalents held during the respective
periods.

During the six months ended October 31, 2001, the Company recorded an
expense of $30,000 related to an investment in a foreign subsidiary and
recorded an expense of $67,965 related to the impairment of goodwill in
connection with the Companys acquisition of Animal Town. During the six months
ended October 31, 2000, the Company recorded a gain of $126,313 from the
cancellation of certain indebtedness relating to the Companys investment in
Immediate Entertainment Group (Immediate).

The Companys loss from discontinued operations, principally Animal Town,
decreased to $79,294 during the six months ended October 31, 2001 as compared
to $113,109 during the quarter ended October 31, 2000. This decrease results
primarily from the significantly reduced operations of Animal Town during the
six months ended October 31, 2001 as compared to the same period last year.

The Company had a net loss of $244,641 for the six months ended October
31, 2001 as compared to net income of $381,703 for the six months ended October
31, 2000. The decrease in net income resulted primarily from (i) significantly
decreased revenues during the six months ended October 31, 2001, as discussed
above, (ii) the expense recorded of $30,000 related to an investment in a
foreign subsidiary and (iii) the expense of $67,965 related to the impairment
of good will in connection with the Companys acquisition of Animal Town and
(iv) a gain from the cancellation of certain indebtedness relating to the
Immediate transaction during the six months ended October 31, 2000, for which
there was no comparable gain during the six months ended October 31, 2001.
During the six months ended October 31, 2001 and 2000, the Company had no
significant provision for income taxes.

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Liquidity and Capital Resources

The Companys principal source of working capital during the three and six
month periods ended October 31, 2001 was motion picture royalty income. The
Company continues to invest in the development of motion picture projects, the
production of which would require significant capital. In the event that the
Company decides to invest in the production of one or more of its projects, the
Company will need to examine and evaluate the additional capital required to
undertake such activities. The Company presently does not have sufficient
capital to pursue such activities. Except for the financing of new film
production costs, the Company believes it has sufficient working capital to
maintain all of its business activities.

For the six months ended October 31, 2001, the Companys net cash flow
provided by operating activities was $63,125 compared to net cash flow of
$20,788 for the comparable six month prior year period. The resulting increase
was principally attributable to lower cash flow used in investing activities of
$39,503. At October 31, 2001, the Company had cash and cash equivalents of
$66,998 as compared to $54,840 at October 31, 2000.

Future Commitments

The Company does not have any material future commitments.

Forward-Looking Statements

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




PART II  OTHER INFORMATION




Item 6  Exhibits and Reports on Form 8-K

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

3.1 Restated Certificate of Incorporation of Registrant. (1)

3.2 Bylaws of Registrant. (2)



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|(1) |  | Incorporated by reference to Form 10-KSB for the fiscal year ended April 30, 1998.
|--- |  | ----------------------------------------------------------------------------------
|   
|   
|   
|   
|(2) |  | Incorporated by reference to Form 10-K for the fiscal year ended April 30, 1988.  

(b)  Forms 8-K

None

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SIGNATURES

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

|                        |                                                             |                         
|----------------------- | ----------------------------------------------------------- | ------------------------
|Date: December 14, 2001 | KINGS ROAD ENTERTAINMENT, INC.                             
|                       
|                        | By:                                                         | /s/Michael L. Berresheim
|                        |                                                            
|                        | Michael L. Berresheim, Chairman
and Chief Executive Officer

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