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Pursuant to FASB
ASC 855, Management has evaluated all events and transactions that occurred from June 30, 2016 through the date of issuance of
these financial statements. During this period, we did not have any significant subsequent events, except as disclosed below:
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On
various dates subsequent to the end of the quarter, the Company issued 25,000 shares
of the Companys common stock for the exercise of 25,000 warrants each with an
exercise price of $1.10 for total cash proceeds of $27,500. |
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On
August 8, 2016, Llama Productions LLC, a wholly-owned subsidiary of the Company, closed
a $5,275,000 multiple draw-down, secured, non-revolving credit facility (the Facility)
with Bank Leumi USA for the production of its animated series Llama Llama (the
Series). The Series is configured as fifteen half-hour episodes comprised
of thirty 11 minute programs to be delivered to Netflix in Fall 2017. The Facility is
secured by the license fees the Company will receive from Netflix for the delivery of
the Series as well as the Companys copyright in the Series. The Facility has a
term of 40 months and has an interest rate of either Prime plus 1% or one, three, or
six month LIBOR plus 3.25%. |
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