10QSB 1 qsbjun05.htm World Wide Motion Pictures Corporation
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 10-QSB
 
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
     ENDED June 30, 2005

OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-27454

WORLD WIDE MOTION PICTURES CORPORATION
(Name of small business issuer in its charter)
MICHIGAN
(State or other jurisdiction
incorporation or organization)
33-0081215
(I.R.S. Employer
Identification No.)
  2120 MAIN STREET, SUITE 180, HUNTINGTON BEACH, CA
(Address of principal executive offices)
   92648
(Zip Code)
(714) 960-7264
(Issuer's telephone number)
          Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

          Indicate the number of shares outstanding of each of the Issuer's classes of common stock as of the latest practical date: 23,781,752 shares of Common Stock (par value $.001 per share) outstanding on June 30, 2005.


Part I. Financial Information
Item 1. Financial Statements

F-1

WORLD WIDE MOTION PICTURES CORPORATION
Index to Financial Statements
  Page
Financial Statements:
   Consolidated Balance Sheets as of June 30, 2005
      and December 31, 2004
F-2
   Consolidated Statements of Operations for the three
      and six months ended June 30, 2005 and 2004
F-3
   Consolidated Statements of Cash Flows for the six months
      ended June 30, 2005 and 2004
F-4
   Notes to Consolidated Financial Statements F-5

F-2
WORLD WIDE MOTION PICTURES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
As of June 30, 2005 and December 31, 2004


  June 30, 
2005
     
(Unaudited)
December 31,
2004
      
Assets

Cash
$      44,336  $      69,172 
Motion picture and television properties, less
   accumulated amortization and writedowns of
   $6,333,792 and $6,330,466, respectively
4,285,706  4,289,032 
Equipment, less accumulated depreciation of
   $12,798 and $10,276, respectively

37,639  40,161 
Total Assets

$ 4,367,681  $ 4,398,365 
Liabilities and Stockholders' Equity

Liabilities:
   Debt
$      25,781  $      29,116 
   Accounts Payable and Accrued Liabilities

2,388 
   Total Liabilities

28,169  29,116 
Stockholders' Equity:
   Preferred Stock, $.01 par value;
      authorized 1,000,000 shares, issued and
      outstanding 468,217 and 468,217 shares,
      respectively (liquidation preference of $4,682)
4,682  4,682 
   Preferred Stock, $10.00 par value;
      authorized 100,000 shares, issued and
      outstanding 23,000 and 23,000 shares,
      respectively (liquidation preference of $230,000)
230,000  230,000 
   Common Stock, $.001 par value; authorized
      100,000,000 shares, issued and outstanding
      23,781,752 and 23,781,752 shares, respectively
23,782  23,782 
   Additional Paid-In Capital 10,515,795  10,515,795 
   Retained Earnings (deficit)

(6,434,747) (6,405,010)
   Total Stockholders' Equity

4,339,512  4,369,249 
Total Liabilities and Stockholders' Equity $ 4,367,681  $ 4,398,365 

See notes to consolidated financial statements.

F-3
WORLD WIDE MOTION PICTURES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2005 and 2004
(Unaudited)


  Three Months Ended June 30, Six Months Ended June 30,
  2005      2004      2005      2004     
 
Operating Revenues $           8,540 $         20,047 $        20,943 $        21,813
 
Operating Costs and Expenses:  
   General and Administrative 15,124     55,236     44,842   65,505  
   Amortization of Motion Picture
      and Television Properties
1,388     1,388     3,326   2,776  
   Depreciation of Equipment 1,261     1,261     2,522   2,522  
 
   Total Operating Costs and Expenses 17,773     57,885     50,690   70,803  
 
Income (loss) from Operations (9,233)    (37,838)    (29,747)  (48,990) 
 
Other Income (expense):  
   Interest Income 267     18     508   48  
   Interest Expense (260)    (255)    (498)  (575) 
 
Net Loss $         (9,226) $       (38,075) $       (29,737) $       (49,517)
 
Loss Per Share - Basic and Diluted $           (0.00) $           (0.00) $           (0.00) $           (0.00)
 
Weighted average number of
   common shares outstanding:
 
   Basic 23,781,752     15,350,752     23,781,752   14,192,752  
 
   Diluted 24,547,020     16,116,020     24,547,020   14,958,020  

See notes to consolidated financial statements.

F-4
WORLD WIDE MOTION PICTURES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)


  Six Months Ended June 30,
  2005      2004     
 
Cash flows from operating activities:
   Net income (loss)
(29,737)  (49,517) 
   Adjustments to reconcile net income (loss)
      to net cash provided by (used in) operating activities:
      Shares issued for services
-    46,320   
      Amortization of motion picture and television properties 3,326    2,776   
      Depreciation of equipment 2,522    2,522   
      Changes in operating assets and liabilities:
         Accounts payable and accrued liabilities
2,388    -   
 
   Net cash provided by (used in) operating activities (21,501)   (2,101)  
 
Cash flows from investing activities -    -   
 
Cash flows from financing activities:
   Net increase (decrease) in debt
(3,335)   (1,400)  
 
   Net cash provided by (used in) financing activities (3,335)   (1,400)  
 
Net increase (decrease) in cash (24,836)   (701)  
 
Cash, beginning of period 69,172    25,096   
 
Cash, end of period 44,336    25,797   
 
Supplemental disclosures:
   Cash payments made during the year:
      Interest
498    740   
 
      Income taxes -    -   

See notes to consolidated financial statements.

F-5
WORLD WIDE MOTION PICTURES CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Three and Six Months Ended June 30, 2005 and 2004
(Unaudited)


1.   Interim Financial Statements

The unaudited financial statements as of June 30, 2005 and for the three and six months ended June 30, 2005 and 2004 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-QSB. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2005 and the results of operations and cash flows for the three month and six month periods ended June 30, 2005 and 2004. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three month and six month period ended June 30, 2005 are not necessarily indicative of the results to be expected for any subsequent quarter of the entire year ending December 31, 2005. The balance sheet at December 31, 2004 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2004 as included in our report on Form 10-KSB.

2.   Description of Business

World Wide Motion Pictures Corporation ("WWMPC") was incorporated in Michigan on December 9, 1980. WWMPC and its subsidiaries (collectively, the "Company") acquire, produce, finance, develop, and distribute motion picture and television properties and render consulting services to the entertainment industry.

3.   Motion Picture and Television Properties

At June 30, 2005, motion picture and television properties consist of:

  Library of completed motion pictures
   and television productions
$   9,713,549 
  Screenplays and development costs       905,949 
 
  Totals 10,619,498 
 
  Accumulated amortization and writedowns   (6,333,792)
 
  Motion picture and television properties - net $   4,285,706 

The majority of the Company's motion picture and television properties were acquired from third parties in exchange for shares of WWMPC Common Stock and WWMPC Preferred Stock.

The motion picture and television properties are stated at the lower of amortized cost or estimated fair value on an individual film basis. Estimated fair values of the respective properties are based on management estimates of future revenues from the respective properties. Actual future revenues from these properties may differ materially from such estimates as a result of many factors, including the amount of capital available to exploit the properties.

4.   Preferred Stock

Three series of preferred stock issued in 2002 totaling 285,000 preferred shares provided for conversion rights to common stock at a rate of 2 shares common for each share preferred until June 30, 2005. On June 30, 2005 and thereafter, the rate increases to 10 shares common for each share preferred. Accordingly, the number of shares of common stock which the preferred stock is convertible into increased on June 30, 2005 to a total of 3,045,268 shares of common stock.

5.   Commitments and Contingencies

Employment agreement - On October 20, 1983, WWMPC executed an agreement with its president (hereafter, "Hancock"). The agreement provided that Hancock will be the chief executive officer of WWMPC until April 1, 2012 (April 1, 2022, if renewed by Hancock). Under the agreement, Hancock is entitled to an annual salary of $85,000 per year for 1983 and annual salaries thereafter equal to $85,000 plus annual increases equal to the greater of (a) $15,000 or (b) proportionate increases in the Consumer Price Index, plus up to 5% of certain revenues earned by the Company. Hancock has waived unpaid compensation due him as of June 30, 2005.

Lease agreement - The Company leases its office in Huntington Beach, California under a one year lease expiring December 2005 at rentals of $736 per month.

Prospective acquisition agreement - The Company has discontinued discussions with the American Pioneer Services Group relative to a Memorandum of Understanding which expired on December 22, 2004. The Company continues to receive and review proposals from enterprises that wish to merge, acquire or be acquired with or by WWMPC. The Company's plans include at this time to accept one or more of the proposals if practicable and beneficial to increased shareholder value. In that event, it is likely but not certain that effective control of WWMPC will change. The Company's Management anticipates signing an agreement in the near future, which, in their opinion, will substantially increase share value. Although the majority of the Company's new business may be in a new industry, the Company will nevertheless continue to grow its existing business.


Item 2. Management's Discussion and Analysis or Plan of Operation

Management's discussion and analysis of financial condition and results of operation should be read in conjunction with the consolidated financial statements and related notes.

RESULTS OF OPERATIONS

The Company's revenue for the six months ending June 30, 2005 was $20,943 as compared to $21,813 for the comparable period of 2004. The six month period ending June 30, 2005 net loss from operations prior to depreciation expense and stock based compensation was ($23,899), and net income for period ended June 30, 2004 of $2,628. For the six months ending June 30, 2005, expenses for the Company's development, production and distribution operations and its miscellaneous operations totaled $44,842 compared to $65,505 for the comparable period of 2004. The decrease in operating expenses of June 30, 2005 was primarily attributable to a reduction in the marketing and distribution of the feature length film entitled "Amy", the reproduction of film and the marketing of the film project "Ninth Street" and the promotion of several other projects. The decrease in revenue attributable to the first half of 2005 is due to revenue pursuant to the exploitation of the film projects "Ninth Street", "Shattered Illusions" and "Amy". There were no resultant per share earnings to common stockholders in June 30, 2005 and June 30, 2004. The Company derives its revenues from the licensing of its newly created film and television productions, the licensing of its inventory of previously produced films or television productions and fees received for professional services provided to the industry. The Company also receives revenue for the marketing and distribution of product produced or owned by third party producers and production companies. The generation of revenue in the motion picture and television industry is highly competitive which may have a material impact on the Company's financial statements.

The following table presents selected financial data for the periods indicated.

    Three Months Ended
    Jun 30,
2004
Sep 30,
2004
Dec 31,
2004
Mar 31,
2005
Jun 30,
2005
 
  Cash $      25,797  $      82,525  $      69,172  $      54,865  $      44,336 
  Assets 4,360,788  4,414,867  4,398,365  4,380,859  4,367,681 
  Total Income 20,065  70,260  322  12,644  8,807 
  Debt 29,433  28,833  29,116  32,121  28,169 
  Total Expense 58,140  20,581  21,823  33,155  18,033 
  Income (Loss) (38,075) 49,679  (21,501) (20,511) (9,226)
  Equity 4,331,355  4,351,034  4,369,249  4,348,738  4,339,512 

The Company has presented a consolidated balance sheet which includes four wholly-owned active subsidiaries: World Wide Productions Inc., World Wide Film & Television Institute, World Wide Entertainment Inc. and World Wide (Pat Publishing Inc.). The Company's charter allows it to branch into diversified fields of enterprise provided management concludes there is a significant potential for profit. It is the decision of management to continue the Company's operations in the motion picture and television industry, but since the primary business objective of the Company is to increase the value of its stockholders' equity, if and when opportunities arise to make profits for the corporation in a diversified industry, the Company shall investigate and if appropriate, pursue such opportunities. The motion picture and television segment of the Company's current or planned operations is the only segment material to the Company's financial statements or condition.

The Company's motion picture and television participation strategy has been to expend its resources and to set in place relationships and contracts in preparation for the continued development, acquisitions, production and/or marketing/distribution of quality moderate budget feature length motion pictures, documentaries, docudramas and television productions. The strategy additionally includes the acquisition of screenplays and teleplays suitable for development/packaging and completed motion pictures and television projects for licensing and marketing/ distribution opportunities for all applicable sales territories throughout the world. At such time that sufficient additional working capital is secured, it is the Company's opinion that substantial revenue will be generated by the existing film and television library and future distribution of potential new product, ultimately realizing its projected return on investment. Currently, arrangements and contractual participation by the Company in various feature film and television productions over the last 5 years include gross and net revenue participations in the following feature film and television productions responsible for worldwide revenue potential including all markets and all media wherein the particular production is distributed:

(1) In 1997 and 1998, post production and distribution preparation of the documentary entitled THE OUTLAW TRAIL, 100 YEARS REVISITED, in association with Western Sunset Films, an 8-year old Los Angeles based documentary production company. (2) In 1998, development and production of the series television production entitled CLASSIC CAR, in association with SLIM, Inc., a 6-year old Los Angeles based television production company. (3) In 1999, the acquisition and preparation for marketing and distribution of the feature film entitled WHAT'S IN A COOKIE produced by production company Rocinante Productions Inc. and providing 50% of gross revenue participation to the Company in perpetuity. (4) In 2000, the acquisition and preparation for marketing and distribution of the feature films entitled MALEVOLENCE and THE SECOND COMING produced by production company Sig Larsen Productions Inc. and providing 50% of gross revenue participation to the Company in perpetuity. Other arrangements include preparation for Internet marketing and distribution of a feature length film acquired by the Company entitled CITIZEN SOLDIER originally produced by M&D Productions, an 18-year old Los Angeles based film production company, purchased by the Company in 1995 and providing a 60% gross revenue participation to the Company in perpetuity.

In 1998, all financing for the completion of the feature length production entitled SHATTERED ILLUSIONS featuring Morgan Fairchild, Bruce Weitz, Richard Lynch and Dan Monahan was secured and the production was completed. In 1999, the Company entered into an Agreement with representative RGH/Lions Share Pictures Inc., a 16-year old, Los Angeles based distribution company for the purpose of conducting all foreign sales arrangements of the film.

In August, 1999, the Company entered into an Agreement with Jaguar Entertainment Inc., a 13-year old Los Angeles based distribution company, for the purpose of marketing and distributing the feature length motion picture entitled NINTH STREET featuring Martin Sheen and Isaac Hayes to all domestic non-theatrical ancillary markets including home video, pay television, satellite and DVD.

In August and September, 1999, the Company entered into an agreement with GTL Productions Inc., a 15-year old Omaha based production company for the purpose of acquiring the domestic and foreign marketing and distribution rights to a documentary series entitled ON THESE RUINS encompassing the titles of ANTARTICA, THE GALAPOGOS ISLAND and EASTER ISLAND.

In June, 2000, the Company entered into an Agreement for the development of an electronic commerce marketing arrangement with Pix Media Inc., a 3 year old Los Angeles based Internet company, for the purpose of providing a national and international e-commerce exploitation venue for various titles within the Company's completed film and television library.

Further, during fiscal year 2000 and in addition to continuing to exploit existing film and television projects such as the feature length films entitled "Shattered Illusions" and "Ninth Street", the Company negotiated and signed a North American Distribution contract on June 17, 2000, for the theatrical and ancillary exploitation of a full length feature film entitled "Amy". The Company also executed an Agreement on June 20, 2000 for the complete purchase of two full length feature films entitled "Malevolence" and "The Second Coming" from Sig Larsen Productions Inc. in Los Angeles, California, which includes all foreign and domestic rights to each film; a domestic U.S. only, Distribution Agreement was executed with a sub-agent for First Motion Picture Inc. in Toronto, Ontario, Canada, on March 27, 2000, for the exploitation of ancillary rights to the full length feature film entitled "Jigsaw"; and on May 8, 2000, a domestic U.S. Distribution Agreement was executed with Praxis Entertainment Inc. in Dallas, Texas for the exploitation of ancillary rights to five full length feature films entitled "Flying Changes", "Winning Colors", "Shadow Dancer", "Trance", and "Corndog Man".

In February, 2001, the Company commenced theatrical marketing and distribution of the feature film entitled "Amy" with a Los Angeles premier of the film at the AMC Century City theaters, the MANN Westwood Cinema, the Loew's Cineplex, Beverly Center and throughout the Edwards theater circuit in Orange County, California. During the first and second quarters of 2001, the theatrical showings of the film continued with a rollout across the United States in cities including New York, Detroit, Seattle and Palm Springs.

In 1999, 2000,2001,2002, 2003, 2004 and the first half of 2005 certain other film and television participations of the Company included development and packaging arrangements, the Company's review and in certain cases, advice and counsel on screenplays and screenplay development scenarios for the subsequent possible packaging and production and distribution of a particular project. The most significant of these productions, their production companies, and percentage of future gross revenue allocated to the Company, were the feature length film entitled CORKLESBY offered by co-production company Northstar Entertainment Inc., a 5-year old Los Angeles based production company, (50%); and the feature length film entitled ALONG FOR THE RIDE offered by production company Wittman Productions Inc., a 5-year old Los Angeles based production company, (50%). In 2000, the Company prepared for production, began distribution and entered negotiations.

The Company experienced no material changes during the first half of 2005 regarding its operations or its financial position relative to first half of 2004. There are no seasonal or other factors regarding the Company's intra-year operations that require explanation of a percentile swing in inter-quarter reports.

GENERAL

In fiscal 2004 and the first half of 2005 the Company continued its involvement in a variety of film and television projects relative to development, acquisitions, packaging, production and marketing/distribution activities. The Company also continued to pursue potential diversified business opportunities that have cash flow possibilities. Management believes that a film or television production's economic success is dependent upon several overlapping factors including general public appetite of a potential genre or performer at the time of release, domestic and international marketing philosophy, applicable usage of existing and new and emerging technology, advertising strategy with resultant penetration and the overall quality of the finished production. The Company's film and television productions may compete for sales with numerous independent and foreign productions as well as projects produced and distributed by a number of major domestic and foreign companies, many of which are units of conglomerate corporations with assets and resources substantially greater than the Company's. Management of the Company believes that in recent years there has been an increase in competition in virtually all facets of the Company's business. Specifically, the motion picture industry competes with television and other forms of leisure-time entertainment. Since the Company may for certain undetermined markets and products distribute its product to all markets and media worldwide, it is not possible to determine how its business as a whole will be affected by these developments and accordingly, the resultant impact on the financial statements. The Company has currently obtained or arranged for the investment capital to produce and/or distribute a minimum of two full length feature films or specialty television productions within the next two years. In addition to the development, financing, production, and distribution of motion picture and television product, the Company expects to continue to exploit a portion or portions of the Company's completed film and television library to a wide variety of distribution outlets including network television, cable television, satellite broadcast, pay-per-view, and home video sales. Specifically, live action motion pictures are generally licensed for broadcast on commercial television following limited or wide release distribution to theatrical outlets (theaters), home video and pay television. Licensing to commercial television is generally accomplished pursuant to agreements which allow a fixed number of telecasts over a prescribed period of time for a specified license fee. Television license fees vary widely, from several thousand to millions of dollars depending on the film or television production, the number of times it may be broadcast, whether it is licensed to a network or a local station and, with respect to local stations, whether the agreement provides for prime-time or off-time telecasting. Licensing to domestic and foreign television stations (syndication) is an important potential source of revenue for the Company, although in recent years the prices obtainable for individual film and television product in domestic syndication have declined as pay television licensing has grown. The growth of pay television and home video technologies, i.e. DVD (Digital Video Disk) and HDTV (High Definition television), has had an adverse effect on the fees obtainable from the licensing of film and television product to networks and local television stations. Thereby potentially affecting the Company's ability to generate substantive revenue from this particular venue; however increasing revenue potential in other areas. Conversely, the Company may derive revenue from the marketing and sale, either directly or through licensees, of motion pictures and other filmed or videotaped product on videocassette or Digital Video Disk for playback on a television set or monitor through the use of videocassette recorders ("VCRs"), digital video disk recorders and continued advancements of pay television (cable), satellite broadcast technologies, and Internet applications domestically and internationally. The Company currently holds the distribution rights to 314 motion picture and television titles. The revenue competition relative to existing or pending exploitation agreements of the Company's film and television product library and current and future production and distribution of projects is volatile due to the many technological and innovative changes in the industry and also changes regularly occurring in the international economy. Currently, governmental involvement and international concerns such as pirating of intellectual property will affect the Company's business prospects.

LIQUIDITY AND CAPITAL RESOURCES

For the six months ended June 30, 2004, the Company experienced a net loss from operations of ($48,990) and for the six months ended June 30, 2005 a net loss from operations of ($29,747). At June 30, 2004, the Company had $25,797 in cash and no cash equivalents and in the same period, 2005, the Company had $44,336 in cash and no cash equivalents. The Company anticipates that its existing capital resources may be adequate to satisfy its capital requirements for the foreseeable future. However, to accomplish the Company's planned activities, it will need to raise additional funds through public or private financings in the form of debt or equity. The Company has available substantial loss carry forwards for federal income tax purposes. The exact amount of the loss carry forwards is uncertain until the Company reaches an understanding with the Internal Revenue Service in that regard. In order to finance its operations, working capital needs and capital expenditures, the Company utilizes revenue from licensing fees, loans, proceeds from the private sale of equity securities, deferred compensation, profit participation, and equity in exchange for services and product.

In accordance with the Securities and Exchange Commission "Regulation D", and subject to Rule 144 restrictions, the Company issued no shares of its common stock and no shares of its preferred stock for cash and no shares of its common stock and no shares of its preferred stock for product and services acquired by or provided to the Company in the first half ending June 30, 2005.

The Company currently utilizes a one hundred thousand ($100,000) dollar primary line of credit with the Wells Fargo Bank of California and Citibank, to accommodate its daily cash flow needs and occasionally uses its credit lines at other financial institutions and with its vendors and suppliers.

The Company's principal liquidity at June 30, 2005 included cash of $44,336 and no accounts receivable and in period ending June 30, 2004 included cash of $25,797 and net accounts receivable of $15,500. The Company's liquidity position has remained sufficient enough to support on-going general administrative expense, pilot programs, strategic position, and the garnering of contracts, relationships and film and television product for addition to the Company's library, and the financing, packaging, development and production of two feature films and specialty television projects. Although the Company during 2003 and 2004 and the first half of 2005 experienced revenue, unless the Company has an influx of additional capital, the Company will not be able to accomplish its planned objectives and revenue projections. Accordingly, the Company intends to resolve and provide for its liquidity needs as well as provide for the needed capital resources to expand its operations through a future proposed public offering of its common shares to the public. It is anticipated that such an offering will commence within the next 24 months for an amount to be determined by the Company and underwriter(s) if any. To meet the Company's interim liquidity and capital resources needs while the Company's contemplated public offering is being prepared and examined, the Company is presently investigating the possibilities of future loans and is considering future sales of unregistered common equity to accredited investors under one or more exemptions that provide for the same. In the event a loan is obtained, one of the terms may provide that the same be repaid from the proceeds derived from the Company's contemplated public offering. A primary use of public offering proceeds would be the further exploitation of the Company's current completed product film and television library, participations in completed films, and the continued development, production and marketing/distribution of new film and television production opportunities.

The Company continues to discuss acquisitions and mergers with various interested parties. During the last three years, the Company has signed Letters of Intent or Understanding and Non-Circumvention and Disclosure documents relative to proposals of merger or acquisition received by the Company. Accordingly, the Company pursued due diligence investigations in each case. It is now more than likely that Management will sign a commitment to proceed with a reverse acquisition in the near future predicated on pro-forma data demonstrating an increase in the Company's share value. Such acquisition would result in a change in effective control of the Company. Although it is possible that the majority of the Company's business will shift to a new industry, Management will continue to grow the Company's existing business.

In 1997 and 1998, management revalued its inventory based on management's receipt of commentary from the Securities and Exchange Commission, with an additional appraisal of potential resale value, worthiness as works of art, and potential licensing capabilities, resulting in a reduction in management's estimate of a net realizable value in 1997 of $4,091,950 and in 1998 of $3,868,380. The results of the reevaluations effectuated in 1997 and 1998 resulted in a substantial reduction in book value of approximately 51% for those items. Further, at year end December 31, 2003, management relative to current world events, industry developments, governmental policy and new accounting standards effected a substantial additional writedown of inventory value.

The Company expects its marketing operations to expand considerably over the next three years. The current inventory and contracts acquired by the Company are now beginning to be more vigorously exploited. As the Company's focus moves from extensive accumulation of product and contracts in an ownership capacity to capital acquisition specifically for marketing purposes using recently developed technologies. Although the Company is conservative regarding its policy concerning the use of borrowed operating capital, it is now in a position to use its reputation and contacts in the industry to leverage operating funds profitably.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS AND
MANAGEMENT'S STATEMENT REGARDING INTERIM PERIOD ADJUSTMENTS


The statements which are not historical facts contained in this Form 10-QSB are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. The words "anticipate", "believes", "expect", "intend", "may" or similar expressions used in this Form 10-QSB as they relate to the Company or its Management are generally intended to identify such forward looking statements. These risks and uncertainties contained in this Form 10-QSB include but are not limited to, product demand and market acceptance risks, the effect of economic conditions generally and retail/wholesale in the motion picture and television industry and marketing conditions specifically, the impact of competition, technological difficulties, capacity and supply constraints or difficulties, the results of financing efforts, changes in consumer preferences and trends, the effect of the Company's accounting policies, weather conditions, acts of God, and other risks detailed in the Company's Security and Exchange Commission filings. The Company's management has made all the adjustments relative to the fiscal yearend statements and the interim period herein, which in the opinion of management are necessary in order to make the financial statements not misleading.

Part II. Other Information
Item 1. Legal Proceedings

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS


There are no material pending legal proceedings to which the Company is a party or to which any of its assets are subject. However, the Company is currently in ongoing negotiations for the reimbursement of lost material which consists of eight 1" and/or 3/4" and/or digital betacam videotape and 35mm film submaster copies of feature length motion picture and television productions, owned or controlled by the Company which were maintained at a post production film and video facility. The Company's attorneys are preparing litigation and related processes relative to the lost material in the event the results of the negotiations are unsatisfactory. The Company is seeking damages in the amount of three hundred ninety seven thousand five hundred ($397,500) dollars for the loss of its "stored material". Further, the co-producers with the Company's subsidiary, World Wide Films Inc., pertaining to a feature length film, commenced litigation to attempt to dissolve the co-production agreement which exists between the Co-Producer and the Subsidiary relative to the production processes of that feature length film. The Company's management and attorneys believed the lawsuit to be groundless and therefore, defended the action on that basis. The matter ultimately resulted in a favorable settlement for the Company, requiring the plaintiffs to pay all expenses of litigation.

Various legal actions, governmental investigations and proceedings and claims may be instituted or asserted in the future by the Company or against the Company and/or its subsidiaries including those arising out of alleged deficiencies in the company's products; governmental or industry regulations relating to safety, financial services; employment-related matters; distributor, exhibitor, co-producer, vendor, supplier, or other contractual relationships; intellectual property rights; product warranties and environmental matters. Some of the foregoing matters involve or may involve compensatory, punitive or anti-trust or other treble damage claims in varying amounts, environmental remediation programs, sanctions or other relief which, if granted, would require varying expenditures.

Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. The Company does not reasonably expect, based on its analysis, that any adverse outcome from such matters would have a material effect on future consolidated financial statements for a particular year, although such an outcome is possible.

Item 2. Changes in Securities

None

Item 3. Defaults Upon Senior Securities

N/A

Item 4. Submission of Matters to a Vote of Security Holders

N/A

Item 5. Other Information

N/A

Item 6. Exhibits and Reports on Form 8-K

N/A


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

WORLD WIDE MOTION PICTURES CORPORATION
 
August 4, 2005 /s/ Paul D. Hancock
     Paul D. Hancock
     President & Chief Executive Officer
 
August 4, 2005 /s/ A. Robert Sobolik
     A. Robert Sobolik
     Executive Vice President/Treasurer


CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of World Wide Motion Pictures Corporation (the "Company") on Form 10-QSB for the quarterly period ended June 30, 2005 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Paul D. Hancock, Chief Executive Officer of the Company, hereby certify, pursuant to and solely for the purpose of 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

  /s/ Paul D. Hancock               
    Paul D. Hancock
    President and Chief Executive Officer
August 5, 2005


CERTIFICATION OF EXECUTIVE VICE PRESIDENT/TREASURER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of World Wide Motion Pictures Corporation (the "Company") on Form 10-QSB for the quarterly period ended June 30, 2005 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, A. Robert Sobolik, Executive Vice President/Treasurer of the Company, hereby certify, pursuant to and solely for the purpose of 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

  /s/ A. Robert Sobolik               
    A. Robert Sobolik
    Executive Vice President/Treasurer
August 5, 2005


WORLD WIDE MOTION PICTURES CORPORATION
A Michigan corporation
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
Section 302 Certification


I, Paul D. Hancock, certify that;

(1) I have reviewed this quarterly report on Form 10-QSB of World Wide Motion Pictures Corporation, a Michigan corporation (the "registrant");

(2) Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

(3) Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

(4) The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

      a) designed such disclosure controls and procedures to ensure that material information relating
      to the registrant, including its consolidated subsidiaries, is made known to us by others within
      those entities, particularly during the period in which this quarterly report is being prepared;

      b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date
      within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

      c) presented in this quarterly report our conclusions about the effectiveness of the disclosure
      controls and procedures based on our evaluations as of the Evaluation Date;

(5) The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

      a) all significant deficiencies in the design or operation of internal controls which could
      adversely affect the registrant's ability to record, process, summarize and report financial data
      and have identified for the registrant's auditors any material weaknesses in internal controls; and

      b) any fraud, whether or not material, that involves management or other employees who have a
      significant role in the registrant's internal controls; and

(6) The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 5, 2005 /s/ Paul D. Hancock               
    Paul D. Hancock
    President and Chief Executive Officer

WORLD WIDE MOTION PICTURES CORPORATION
A Michigan corporation
CERTIFICATION OF EXECUTIVE VICE PRESIDENT/TREASURER
Section 302 Certification

I, A. Robert Sobolik, certify that;

(1) I have reviewed this quarterly report on Form 10-QSB of World Wide Motion Pictures Corporation, a Michigan corporation (the "registrant");

(2) Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

(3) Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

(4) The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

      a) designed such disclosure controls and procedures to ensure that material information relating
      to the registrant, including its consolidated subsidiaries, is made known to us by others within
      those entities, particularly during the period in which this quarterly report is being prepared;

      b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date
      within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

      c) presented in this quarterly report our conclusions about the effectiveness of the disclosure
      controls and procedures based on our evaluations as of the Evaluation Date;

(5) The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

      a) all significant deficiencies in the design or operation of internal controls which could
      adversely affect the registrant's ability to record, process, summarize and report financial data
      and have identified for the registrant's auditors any material weaknesses in internal controls; and

      b) any fraud, whether or not material, that involves management or other employees who have a
      significant role in the registrant's internal controls; and

(6) The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 5, 2005 /s/ A. Robert Sobolik               
    A. Robert Sobolik
    Executive Vice President/Treasurer