What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-04-14 compared with 2024-03-28 · 27 added, 37 removed, 147 unchanged (30% of the section changed)

27 unchanged sentences

of motion pictures.

We reported net losses of $1.4 million and $86,000 for the years ended December 31, 2023 and 2022, respectively.

We reported net losses of $2.3 million and $1.4 million for the years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, we had an accumulated deficit of approximately $7.3 million.

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anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued

research activities and development of our product candidates.

research activities and development of our projects.

We also anticipate that we will incur increased accounting, audit, legal,

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credit cards, and related party debt.

Debt Expense .

Bad debt expense reflects amounts recorded as a reserve for accounts receivable where management had subsequently determined

collectability is uncertain or improbable.

our inception, we have not recorded any income tax benefits for the net losses we have incurred or for the research and development tax

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of revenues for the years ended December 31, 2024 and 2023, were approximately $0 and $37,000 respectively.

Approximately $130,000

of the 2022 costs related to expenses associated with revenues generated from the licensed film Buffaloed .

The remainder of the

2023 expenses and the 2022 expenses consist of those costs directly related to the services being rendered.

A majority of the consulting

services were performed by management and members of the Board of Directors.

The 2023 expense consist

of those costs directly related to the services being rendered.

A majority of the consulting services were performed by management and

members of the Board of Directors.

and Administrative Expenses

and administrative expenses for the year ended December 31, 2023, were approximately $1.5 million, compared to approximately $409,000

for the year ended December 31, 2022.

The net increase of approximately $1.1 million in general and administrative expenses primarily

relates to a $771,000 increase in legal and professional fees principally related to becoming an SEC registrant and legal matters;

approximately

$194,000 of bad debt expense;

$33,000 related to new directors and officers insurance;

$39,000 of higher travel expenses;

of increased investor relations expenses.

and administrative expenses for the year ended December 31, 2024, were approximately $2.3 million compared to approximately $1.5 million

for the year ended December 31, 2023, an increase of approximately $741,000.

The increase was primarily attributable to the Company recording

approximately $1,258,000 of stock option expense offset by a $322,000 reduction in legal and professional fees.

Additionally, the 2023

period included approximately $194,000 of bad debt expense.

We expect to see further increases as we grow our operations in future periods.

2 unchanged sentences

of interest earned on invested cash balances.

Interest expense for the years ended December 31, 2023 and 2022 was approximately $6,000 and $8,000, respectively, and was

primarily related to our Economic Injury Disaster Loan (“EIDL ”) and working capital loans.

Interest expense for the years ended December 31, 2024 and 2023 was approximately $46,000 and $6,000, respectively.

2024 expense included $24,000 of interest on working capital loans, $22,000 of related party interest, and $10,000 of EIDL interest.

The 2023 interest was primarily related to our Economic Injury Disaster Loan (“EIDL ”) and working capital loans.

and Capital Resources

indicated in the accompanying financial statements, we had an accumulated deficit of approximately $7.3 million, incurred a net loss

of approximately $1.4 million and cash outflow from operations of approximately $1.1 million as of and for the year ended December 31,

of approximately $2.2 million and cash outflow from operations of approximately $805,000 as of and for the year ended December 31, 2024.

Further, we expect to continue to incur significant costs in the pursuit of our business plans.

We cannot assure you that our plans

to raise capital or to complete our film development and production activities and commercially release our products will be successful.

We cannot assure you that our plans to

raise capital or to complete our film development and production activities and commercially release our products will be successful.

These factors, among others, raise substantial doubt about our ability to continue as a going concern.

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with proceeds from sales of Common Stock and borrowings under convertible promissory notes.

As of December 31, 2023, we had cash and

cash equivalents of $204,000.

As of December 31, 2024, we had negative

cash and cash equivalents of $21.

the year ended December 31, 2024, operating activities used approximately $805,000 of cash, primarily resulting from our net loss of

approximately $2.3 million, partially offset by non-cash charges of approximately $1.4 million.

the year ended December 31, 2023, operating activities used approximately $1.1 million of cash, primarily resulting from our net loss

of approximately $1.4 million, partially offset by non-cash charges of approximately $353,000.

the year ended December 31, 2022, operating activities provided approximately $5,000 of cash, primarily resulting from our net loss of

approximately $86,000, partially offset by non-cash charges of approximately $25,000 and net cash provided by changes in our operating

assets and liabilities of $64,000.

the year ended December 31, 2023, net cash used by financing activities was approximately $162,000.

2034 investing activities included

$89,000 related to film production and $73,000 investment in intangible assets

the year ended December 31, 2022, net cash used by financing activities was $121,000 principally related to film production activities.

the year ended December 31, 2024, net cash used by financing activities was approximately $22,000 comprised of investment in intangible

the year ended December 31, 2023, net cash used by financing activities was approximately $73,000 comprised of investment in intangible

the year ended December 31, 2024, net cash provided by financing activities was approximately $623,000, derived primarily from related

party borrowings of $358,000, $357,000 of net borrowings on a commercial line of credit, and $169,000 from the sale of common stock.

the year ended December 31, 2023, net cash provided by financing activities was approximately $1.467 million, derived primarily from

Additionally, during 2024 the Company borrowed and repaid $178,500 from Mr.

MacGregor under a working capital borrowings arrangement.

the year ended December 31, 2022, net cash provided by financing activities was approximately $46,500, consisting primarily of $46,500

of net borrowings under a related party working capital working capital note.

MacGregor under a working capital borrowings

expect our expenses to increase substantially in connection with our ongoing film development and production activities.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis