FILM COSTS, NET

12 Months Ended

Jun. 30, 2019

Film Costs [Abstract]

FILM COSTS, NET

NOTE 4 – FILM COSTS, NET

Film costs are comprised of the following:

	June 30, 2019		June 30, 2018
Independent Self-Produced Film Costs, Net	$	85,475	$	982,175
Capitalized Film Costs covered under Production Service Agreements, Net		343,256		1,553,184
Total Film Costs	$	428,731	$	2,535,359

Film costs include salaries and wages, and all other direct costs associated with the motion pictures and television productions. In addition, the Company qualifies for certain government programs that provide incentives earned in regards to expenditures on qualifying film production activities. The incentives recorded as an offset to the related asset balance.

As of June 30, 2019, the Company performed fair value measurements related to film costs and determined that there were no indicators of impairment. During the year ended June 30, 2019, the Company did not recognize impairment loss.

On November 10, 2017 the Company executed a First Amendment Agreement to its 6x picture Production and Distribution Agreement between Big Film Factory LLC (“Big Film” or “Prodco”) and Pure Flix Entertainment LLC (“PFE”), (the “Agreement”). The Agreement memorializes the understanding with respect to the development, packaging, production, post-production and worldwide distribution of the films intended for initial and primary worldwide exhibition. The Company, will be added as a party to the initial agreement by and between Big Film and PFE, wherever Big Film is referenced in connection with providing production services in conjunction with Big Film as well as providing production capital and cash following each of the first six (6) films produced under the Agreement (“6 Pictures”). Both Prodco and PFE agree to expand the defined role of “Prodco” in the Agreement, to add the Company to that definition, and grant the Company equally the same role and responsibilities heretofore only held by Big Film in connection with the 6 Pictures.

During the year ended June 30, 2019, $2,483,448 of capitalized film costs were expensed as cost of revenues, of which $889,248 related to Last Vermont Christmas LLC, $868,795 related to Christmas Camp LLC, $354,788 related to One HLWD, and $370,617 related to Three HLWD.