MUSICMAKER COM INC

CIK:0001079786|SEC Filings

NET EARNINGS (LOSS) PER SHARE	9 Months Ended
NET EARNINGS (LOSS) PER SHARE	Sep. 30, 2011
Notes to Financial Statements
Note 14 - NET EARNINGS (LOSS) PER SHARE	Basic earnings (loss) per share excludes dilution and is computed by dividing earnings (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shares in the earnings (loss) of the Company. Certain unexercised stock options and convertible debt warrants to purchase shares of the Company's common stock as of September 30, 2011, were excluded in the computation of diluted earnings (loss) per share because the options' and warrants’ exercise price was greater than the average market price of the Company's common stock and the effect would be antidilutive. For the three and nine months ended September 30, 2011 and 2010, there were 1,515,000 potential common shares outstanding, respectively

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (150,562)	$ (56,141)
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Amortization of deferred royalties	(187,060)	(266,059)
Amortization of discounted notes		67,000
Other than temporary impairment and realized (gains) losses on marketable securities	19,255	50,454
Changes in operating assets and liabilities:
Accounts receivable	12,210	16,188
Prepaid expenses and other current assets	(13,947)	(13,232)
Accounts payable and accrued expenses	44,985	169,867
Accrued interest payable	112,500	91,000
Net cash provided by (used in) operating activities	(201,129)	(41,831)
CASH FLOWS FROM INVESTING ACTIVITIES,
Proceeds from the sale of marketable securities	36,147	73,371
Net cash provided by investing activities	36,147	73,371
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party payable	47,592	56,050
Payment of related party payable	(5,624)	(22,808)
Net cash provided by financing activities	41,968	33,242
Net decrease in cash and cash equivalents	(123,014)	64,782
Cash and cash equivalents at beginning of period	170,996	99,059
Cash and cash equivalents at end of period	47,982	163,841
Supplemental disclosure of non-cash investing and financing activities
Waiver of contingent liability		1,000,000
Forgiveness of debt from related party		68,621
Investment in common stock in exchange for deferred royalties	10,665	45,706
Supplemental disclosure:
Income taxes paid
Interest paid		$ 13,023

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 47,982	$ 170,996
Accounts receivable, less allowance for doubtful accounts of $1,100 at September 30, 2011 and December 31, 2010	8,431	20,641
Prepaid expenses and other current assets	38,947	25,000
Marketable securities, at amortized cost	59,159	94,333
Total assets	154,519	310,970
LIABILITIES AND DEFICIENCY
Accounts payable and accrued expenses	870,106	825,121
Deferred royalties, current portion		176,396
Accrued interest payable	225,708	113,208
Convertible notes payable	1,000,000	1,000,000
Related party payables	178,031	136,063
Total current liabilities	2,273,845	2,250,788
Deficiency:
Series A Preferred Stock, $0.01 par value, 2 shares authorized, at September 30, 2011 and December 31, 2010
Common stock, $0.01 par value, 25,000,000 shares authorized; 5,158,197 shares issued and 5,088,759 shares outstanding at September 30, 2011 and December 31, 2010	51,583	51,583
Additional paid-in capital	188,745,120	188,745,120
Accumulated other comprehensive loss	28,946
Deficit	(190,795,550)	(190,648,785)
Treasury stock, 69,438 shares at cost	91,533	91,533
Total George Foreman Enterprises, Inc. and Subsidiaries Stockholders' deficiency	(2,119,326)	(1,943,615)
Non-controlling interest		3,797
Total deficiency	(2,119,326)	(1,939,818)
Total liabilities and deficiency	$ 154,519	$ 310,970