Platinum Studios, Inc.

CIK:0001410132|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net revenue	$ 4,943,963	$ 150,645	$ 10,469,444	$ 2,248,693
Costs and expenses:
Cost of revenues	4,692,049	14,378	10,167,007	493,960
Operating expenses	1,009,398	650,260	2,276,343	2,251,495
Development costs	194,298	101,307	514,305	240,246
Total costs and expenses	5,895,745	765,945	12,957,655	2,985,701
Operating loss	(951,782)	(615,300)	(2,488,211)	(737,008)
Other income (expense):
Gain on disposition of assets		55,200		249,220
Gain (loss) on settlement of debt	(79,126)	27,492	(245,695)	109,949
Gain (Loss) on valuation of derivative liability	(1,282,318)	525,000	(4,280,048)	(245,000)
Cost of Financing	(3,153,691)		(3,153,691)
Interest expense	(826,955)	(121,279)	(3,664,790)	(1,079,444)
Total other income (expense):	(5,342,090)	486,413	(11,344,224)	(965,275)
Net loss	$ (6,293,872)	$ (128,887)	$ (13,832,435)	$ (1,702,283)
Net loss per share	$ (0.02)	$ 0.00	$ (0.04)	$ (0.01)
Basic and diluted weighted average shares	376,150,663	289,778,706	339,050,861	282,777,651

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities
Net loss	$ (13,832,435)	$ (1,702,283)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	25,782	39,188
Amortization of film library	9,153,288	45,652
Gain on disposal of assets		(249,220)
(Gain) Loss on settlement of debt	245,695	(109,949)
Fair value of stock issued for services	594,380	395,890
Amortization of debt discount	3,133,268	729,088
Loss on valuation of derivative liability	7,433,739	245,000
Decrease (increase) in operating assets:
Restricted cash		30,342
Accounts receivable	(200,000)	10,313
Investment in film library		(1,204,668)
Prepaid expenses and other current assets	(524,367)	(1,065,906)
Deposits and other assets	260,348
Increase (decrease) in operating liabilities:
Accounts payable	454,858	120,636
Related party payables	81,875	285,000
Accrued expenses	832,605	178,038
Accrued interest	157,292	(30,844)
Interest added to short term notes payable	234,477
Deferred revenue	(3,924,155)	2,015,630
Net cash flows (used in) provided by operating activities	4,126,650	(268,093)
Cash flows from investing activities
Proceeds from sales of property and equipment and intangibles		309,800
Purchases of property and equipment	(6,126)	(16,788)
Net cash flows (used in) provided by investing activities	(6,126)	293,012
Cash flows from financing activities
Proceeds from short-term notes payable	335,500	1,034,853
Proceeds from related party notes payable	257,000	7,500
Payments on short-term notes payable	(5,723,536)	(1,278,832)
Payments on related party notes payable		(90,562)
Payments on capital leases	(5,734)	(86,248)
Issuance of common stock, net of offering costs	1,009,233	722,549
Net cash flows (used in) provided by financing activities	(4,127,537)	309,260
Net increase (decrease) in cash	(7,013)	334,179
Cash, at beginning of year	76,275	152,067
Cash, at end of period	69,262	486,246
Supplemental disclosure of cash flow information:
Cash paid for interest	37,684	337,632
Non-cash investing and financing activities:
Fair value of note discount	3,750,000
Stock issued as payments of notes payable, accounts payable and accrued interest	$ 809,248	$ 53,773

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 69,262	$ 76,275
Accounts receivable	200,000
Prepaid expenses	46,549	100,940
Other current assets	1,017,557	438,799
Total current assets	1,333,368	616,014
Property and equipment, net	56,975	76,631
Investment in film library, net	295,919	9,449,207
Assets held for sale	12,000	12,000
Deposits and other	60,812	321,160
Total assets	1,759,074	10,475,012
Current liabilities:
Accounts payable	1,257,540	1,195,673
Accrued expenses and other current liabilities	2,660,378	1,278,092
Deferred revenue	49,583	3,973,738
Short term notes payable	5,672,410	10,960,274
Related party payable	447,500	347,500
Derivative liability	18,947,707	7,763,968
Capital leases payable	5,893	11,627
Total current liabilities	29,703,297	26,999,660
Commitments and contingencies
Shareholders' Deficit:
Common stock, $.0001 par value; 2,500,000,000 shares authorized; 413,234,555 and 310,345,811 issued and outstanding, respectively	41,323	31,035
Additional paid in capital	19,881,312	17,478,740
Accumulated deficit	(47,866,858)	(34,034,423)
Total shareholders' deficit	(27,944,223)	(16,524,648)
Total liabilities and shareholders' deficit	1,759,074	10,475,012
Net of debt discount
Current liabilities:
Related party notes payable	662,286	1,279,018
Accrued interest
Current liabilities:
Related party notes payable		$ 189,770