New York Codes, Rules and Regulations › Title 13 - DEPARTMENT OF LAW › Chapter III - THEATRICAL SYNDICATION FINANCING › Part 51 - Theatrical Accounting › Section 51.3 - Financial reports to be rendered by a theatrical production company

Current through Register Vol. 46, No. 28, July 10, 2024
The financial reports listed below are to be prepared in the
				  manner set forth in the applicable portion of section
				  51.5 
				  of this Part and are to be submitted when due to all investors, and, except
				  where otherwise noted, to the Department of Law and where the report is
				  unaudited, accompanied by a letter of transmittal subscribed to by the issuer
				  or other offeror as set forth in section
				  51.4 
				  of this Part.
(a) A pre-opening report
				consisting of a balance sheet covering each six-month period (or portion
				thereof) occurring prior to the first paid performance of any production
				produced, developed or invested in by the theatrical production company. Each
				such report shall also include a schedule of production costs incurred during
				the period and, if applicable, a cumulative schedule of total production costs.
				The first such report shall be due six months and 30 days after the initial
				expenditure of investors' funds for any such production other than the funds of
				any principal or front money investors (but shall include such latter
				transactions) or not later than 30 days after the close of the period covered
				thereby. This subdivision shall only be applicable to periods not covered by a
				previously issued annual report, as defined hereafter, or an annual report
				required to be issued by this Part, which covers a period ending with the close
				of the applicable six-month period.
(b) A monthly report consisting of a summary
				balance sheet (or financial summary or analysis) and profit and loss statement
				for each theatrical production produced, developed or invested in by the
				theatrical production company covering each monthly period (or portion thereof)
				beginning with the date of the first paid tryout performance (or opening if
				there is none) of any such production and continuing until the last public
				performance of the original production. Such monthly report is due not later
				than 30 days after the close of the period covered thereby. The monthly report
				shall be submitted to all investors but need not be submitted to the Department
				of Law. (Until the capital is recouped, the monthly reports should describe the
				excess of income over expense as amounts recovered for the period, and not as
				profit.)
(c) An annual report
				consisting of a balance sheet (or similar financial summary or analysis) and
				profit and loss statement for each 12-month period (or portion thereof),
				occurring prior to the last public performance of any production produced,
				developed or invested in by the theatrical production company. All annual
				reports covering a period ending prior to the opening of any such production or
				in which the opening occurred shall also include a schedule of production costs
				incurred during the period, and if applicable, a cumulative statement of total
				production costs. The first annual report shall be due four months after the
				close of 12 months following initial expenditure of investors' funds (other
				than the funds of any principal or front money investors) in any such
				production, but shall include all previous financial transactions. If the
				production closes prior to the end of the 12-month period after the initial
				expenditure of investors' funds, then the first report is due four months after
				the last public performance. Each succeeding annual report is due four months
				after the close of the period covered thereby. The statement of production
				costs should show comparison with the budgeted amount, with large variations
				explained. Such annual reports shall continue to be made for each year in which
				the theatrical production company has had any earnings or expenditures or other
				financial transactions of any nature and shall include in addition to a balance
				sheet (or financial summary or analysis) a statement of earnings and
				expenditures as well as a description of any financial transactions such as
				settlement of accounts, loans by the theatrical production company, and any
				other transactions not reflected in the statement of earnings and expenditures.
				The issuer or other offeror's accountant may obtain a 30-day extension in
				filing the annual report by advising the Department of Law in writing, prior to
				the due date of the annual report, that such report will be submitted no later
				than 30 days following the original due date.
(d) In those cases where the proceeds of the
				theatrical production company, or any part thereof, are used to develop or
				invest in a production or productions not under the direct control of the
				issuer or other offeror, such issuer or other offeror shall require, through a
				legally enforceable contract, that the above reports be provided as set forth
				in this Part.
(e) With respect to a
				theatrical production company formed to produce, develop or invest in more than
				one specified or nonspecified theatrical production, in addition to the above
				reports, an annual report of the theatrical production company, consisting of a
				balance sheet and profit and loss statement for each fiscal year of the
				theatrical production company.