IMK GROUP, INC. - FORM 10-Q

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EX-32.1 - EXHIBIT 32.1 - IMK GROUP, INC.	ex32-1.htm
EX-31.1 - EXHIBIT 31.1 - IMK GROUP, INC.	ex31-1.htm
EXCEL - IDEA: XBRL DOCUMENT - IMK GROUP, INC.	Financial_Report.xls

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

[X]	Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended May 31, 2012

[ ]	Transition Report under Section 13 or 15(d) of the Exchange Act for the Transition Period from ________ to ___________

Commission File Number: 333-123611

FUTURA PICTURES, INC.

(Exact name of small business issuer as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

56-2495218

(I.R.S. Employer Identification No.)

17337 Ventura Boulevard, Suite 305

Encino, California 91316

Issuer's Telephone Number: (818) 784-0040

(Address and phone number of principal executive offices)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or 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 by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [_] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	[_]	Accelerated filer	[_]

Non-accelerated filer	[_]	Smaller reporting company	[X]

Check whether the issuer is a “shell company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934. Yes [_] No [X]

The Registrant has 1,599,750 shares of Common stock, par value $.0001 per share issued and outstanding as of June 30, 2012.

INDEX TO QUARTERLY REPORT

ON FORM 10-Q

PART I	FINANCIAL INFORMATION		Page
Item 1.	Financial Statements (Unaudited)
	Condensed Balance Sheets
		May 31, 2012 and February 29, 2012	4
	Condensed Statements of Operations
		For the Three Months Ended May 31, 2012 and 2011	5
	Condensed Statements of Shareholders’ Deficit
		For the Three Months Ended May 31, 2012	6
	Condensed Statements of Cash Flows
		For the Three Months Ended May 31, 2012 and 2011	7
	Notes to Condensed Financial Statements		8-13

Item 2.	Management's Discussion and Analysis or Plan of Operation		14

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		18

Item 4.	Controls and Procedures		18-19


PART II	OTHER INFORMATION

Item 1.	Legal Proceedings		20

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		20

Item 3.	Defaults upon Senior Securities		20

Item 4.	Mine Safety Disclosures		20

Item 5.	Other Information		20

Item 6.	Exhibits		20

Signatures			21

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

(Financial Statements Commence on Following Page)

FUTURA PICTURES, INC.

CONDENSED BALANCE SHEETS

	May 31, 2012 (Unaudited)			February 29, 2012
ASSETS

Cash	$	2,098		$	2,409
Accounts receivable		2,904			2,483
Prepaid expenses		180			270

TOTAL CURRENT ASSETS		5,182			5,162

Deposits		900			900

TOTAL ASSETS	$	6,082		$	6,062



LIABILITIES

Line of credit	$	-		$	39,421
Accrued expenses		19,799			41,708
Unearned revenue		100			100
Accrued interest – related party		21,402			18,205
Loan payable – related party		179,454			98,989

TOTAL LIABILITIES		220,755			198,423

STOCKHOLDERS’ DEFICIT

Common stock, par value $0.0001 per share Authorized – 100,000,000 shares Issued and outstanding – 1,599,750 shares		160			160
Additional paid-in capital		327,404			317,004
Accumulated deficit		(542,237	)		(509,525	)

TOTAL STOCKHOLDERS’ DEFICIT		(214,673	)		(192,361	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	6,082			6,062

The accompanying notes are an integral part of these financial statements.

FUTURA PICTURES, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MAY 31, 2012 AND 2011

UNAUDITED

	2012			2011

REVENUE	$	12,262		$	20,245

COST OF REVENUE		3,413			4,302

GROSS PROFIT		8,849			15,943

OPERATING EXPENSES
Selling, general and administrative		35,595			26,126

TOTAL OPERATING EXPENSES		35,595			26,126

LOSS FROM OPERATIONS		(26,746	)		(10,183	)

OTHER INCOME (EXPENSE)
Other income		-			1,204
Interest expense		(5,166	)		(3,794	)

TOTAL OTHER INCOME (EXPENSE)		(5,166	)		(2,590	)

LOSS BEFORE INCOME TAXES		(31,912	)		(12,773	)

Income tax expense		800			800

NET LOSS	$	(32,712	)	$	(13,573	)

NET LOSS PER COMMON SHARE
Basic and diluted	$	(0.02	)	$	(0.01	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic and diluted		1,599,750			1,599,750

The accompanying notes are an integral part of these financial statements.

FUTURA PICTURES, INC.

CONDENSED STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED MAY 31, 2012 AND 2011

UNAUDITED

	Common Stock
	Shares		Amount		Additional Paid- in Capital		Retained Deficit			Total Stockholders’ Equity (Deficit)
Balance, March 1, 2012		1,599,750	$	160	$	317,004	$	(509,525	)	$	(192,361	)

Contributed services		-		-		10,400		-			10,400

Net loss for the three months ended May 31, 2012		-		-		-		(32,712	)		(32,712	)

Balance, May 31, 2012		1,599,750	$	160	$	327,404	$	(542,237	)	$	(214,673	)

The accompanying notes are an integral part of these financial statements.

FUTURA PICTURES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MAY 31, 2012 AND 2011

UNAUDITED

	2012			2011

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(32,712	)	$	(13,573	)
Adjustments to reconcile net loss to net cash (used) by operating activities:
Amortization expense		90			90
Contributed services		10,400			10,400
Changes in operating assets and liabilities:
Accounts receivable		(421	)		(82	)
Prepaid expenses		-			2
Accrued expenses		(18,712	)		(13	)

NET CASH USED BY OPERATING ACTIVITIES		(41,355	)		(3,176	)


CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on line of credit		(39,421	)		-
Proceeds from loan payable – related party		80,465			2,500
Repayment of loan payable – related party		-			(559	)

NET CASH PROVIDED BY FINANCING ACTIVITIES		41,044			1,941

NET DECREASE IN CASH		(311	)		(1,235	)

CASH AT THE BEGINNING OF THE PERIOD		2,409			9,683

CASH AT THE END OF THE PERIOD	$	2,098		$	8,448

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest paid	$	1,969		$	526
Taxes paid	$	-		$	-

The accompanying notes are an integral part of these financial statements.

FUTURA PICTURES, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

MAY 31, 2012

UNAUDITED

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Business

Futura Pictures, Inc. (the “Company”) was incorporated under the laws of the state of Delaware on December 10, 2003. The Company was formed to engage in the production and the co-financing of films, documentaries and similar products produced solely for the distribution directly to the domestic and international home video markets.

Unclassified Balance Sheet

As required by ASC Topic 926, the Company has elected to present an unclassified balance sheet.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and the disclosure of contingent assets and liabilities. These estimates and assumptions are based on the Company’s historical results as well as management’s future expectations. The Company’s actual results could vary materially from management’s estimates and assumptions.

Disclosure About Fair Value of Financial Instruments

The Company estimates that the fair value of all financial instruments at May 31, 2012 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying balance sheet. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

Concentrations and Credit Risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of accounts receivable.

Three customers represented approximately 38% (11%, 11%, and 16%) of total revenues for the three months ended May 31, 2012. Two customers represented approximately 42% (19% and 23%) of total revenues for the three months ended May 31, 2011.

The accounts receivable from four customers were approximately 82% (25%, 24%, 22%, and 11%) of total accounts receivable as of May 31, 2012.

No other customers represented greater than 10% of total revenues for the three months ended May 31, 2012 and 2011 or total accounts receivable at May 31, 2012.

Revenue Recognition

Sales are recognized upon shipment of videos to the customer or upon website download by the customer. The Company's products may not be returned by the customer. Accordingly, the Company has made no provision for returns.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

Prepaid Expenses

The Company amortizes its prepaid expenses on a straight-line basis over the period during which it will receive the underlying services.

Production Costs

The Company periodically incurs costs to produce new management training videos and enhance current videos. Historically, the Company has been unable to accurately forecast revenues to be earned on these videos and has, accordingly, expensed such costs as incurred. The Company expensed $6,299 and zero in production costs for the three months ended May 31, 2012 and 2011, respectively.

Value of Stock Issued for Services

The Company periodically issues shares of its common stock in exchange for, or in settlement of, services. The Company’s management values the shares issued in such transactions at either the then market price of the Company’s common stock, as determined by the Board of Directors and after taking into consideration factors such as volume of shares issued or trading restrictions, or the value of the services rendered, whichever is more readily determinable.

Net Income (Loss) Per Share

The Company adopted ASC No. 260, “Earnings Per Share”, that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (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. In accordance with ASC No. 260, “Earnings Per Share”, any anti-dilutive effects on net income (loss) per share are excluded. The Company has no potentially dilutive securities outstanding at May 31, 2012.

Income Taxes

Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in ASC No. 740, “Accounting for Income Taxes”. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Recent Pronouncements

There are no recently issued accounting standards with pending adoptions that the Company’s management currently anticipates will have any material impact upon its financial statements.

NOTE 2 SIGNIFICANT UNCERTAINTY REGARDING THE COMPANY’S ABILITY TO CONTINUE AS A GOING CONCERN AND MANAGEMENT PLANS

The Company has incurred significant losses over recent years and currently has a working capital deficit of approximately $215,000. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company's current financial resources are not considered adequate to fund its planned operations. This condition raises substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company's continuation as a going concern currently is dependent upon timely procuring significant external debt and/or equity financing to fund its immediate and near-term operations, and subsequently realizing operating cash flows from sales of its film products sufficient to sustain its longer-term operations and growth initiatives. During the next 12 months the Company will be seeking to produce, or acquire another one or two “self-improvement/educational” DVDs, and to expand their library of workforce training programs.

NOTE 3 LINE OF CREDIT

On March 21, 2012, the Company paid the outstanding balance of $39,421 on its line of credit. This payment was made possible by an additional advance from the Company’s President.

NOTE 4 UNEARNED REVENUE

On August 12, 2009, the Company signed an agreement with Gaiam America, licensing them the distribution rights to "The Five Secrets of Communication That Swept Obama to the Presidency." Under the terms of the agreement, Gaiam America will distribute the DVD throughout the world to the non-educational market. Further, pursuant to the agreement the Company received the $15,000 advance on September 14, 2009. Sales of the DVD under the Gaiam America distribution agreement commenced during the last quarter of fiscal 2010 and the company has recorded $361 of income since the effective date of the agreement. Due to minimal sales of the DVD under the Gaiam America distribution agreement, management estimated the only about $100 can be collected in the future and the rest of the advance in the amount of $14,539 was recognized as revenue during last quarter of fiscal year ended February 29, 2012.

NOTE 5 RELATED PARTY TRANSACTION

Prepaid Loan Commitment

On February 16, 2005, the Company’s President, Buddy Young, accepted an unsecured promissory note from the Company and agreed to lend up to $200,000 to the Company to fund any cash shortfalls through December 31, 2012. The note bears interest at 8% and is due upon demand, no later than June 30, 2013. The outstanding balance was $179,454 as of May 31, 2012.

NOTE 6 STOCKHOLDERS’ DEFICIT

For the three months ended May 31, 2012 and 2011, the Company’s President devoted time to the development process of the Company. Compensation expense totaling $10,400 has been recorded in each period. The President has waived reimbursement of $10,400 during each of the three months ended May 31, 2012 and 2011, and accordingly the amounts have been recorded as a contribution to capital.

NOTE 7 INCOME TAXES

Deferred Tax Components

Significant components of the Company’s deferred tax assets are as follows at May 31, 2012:

Net operating loss carry-forward	$	45,844
Less valuation allowance		(45,844	)
Net deferred tax assets	$	0

Summary of valuation allowance:

Balance, March 1, 2012	$	42,221
Addition for the three months ended May 31, 2012		3,623
Balance, May 31, 2012	$	45,844

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Net Operating Loss

The Company has approximately $205,000 net operating loss carry-forwards, which expire in various years through 2032.

Examination

The Company’s tax returns are open to examination for the years ended 2008 and forward.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

You should read this section together with our financial statements and related notes thereto included elsewhere in this report. In addition to the historical information contained herein, this report contains forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are not based on historical information but relate to future operations, strategies, financial results or other developments. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. Certain statements contained in this Form 10, including, without limitation, statements containing the words "believe," "anticipate," "estimate," "expect," "are of the opinion that" and words of similar import, constitute "forward-looking statements." You should not place any undue reliance on these forward-looking statements.

You should be aware that our results from operations could materially be effected by a number of factors, which include, but are not limited to the following: economic and business conditions specific to the motion picture, television, and home video industries; competition from other producers of home video content; and television documentaries, our ability to control costs and expenses, access to capital, and our ability to meet contractual obligations. There may be other factors not mentioned above or included elsewhere in this report that may cause actual results to differ materially from any forward-looking information.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based upon our statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. In consultation with our Board of Directors, we have identified two accounting policies that we believe are key to an understanding of our financial statements. These are important accounting policies that require management's most difficult, subjective judgment.

Going Concern. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company's current financial resources are not considered adequate to fund its planned operations. This condition raises substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company's continuation as a going concern currently is dependent upon timely procuring significant external debt and/or equity financing to fund its immediate and near-term operations, and subsequently realizing operating cash flows from sales of its film products sufficient to sustain its longer-term operations and growth initiatives During the next 12 months the Company will be seeking to produce, or acquire another one or two “self-improvement/educational” DVDs, and to expand their library of workforce training programs.

Non-Cash Equity Issuances. We periodically issue shares of our common stock in exchange for, or in settlement of, services. Our management values the shares issued in such transactions at either the then market value of our common stock, as determined by the Board of Directors and after taking into consideration factors such as the volume of shares issued or trading restrictions, or the value of the services received, whichever is more readily determinable.

General

We were incorporated in the State of Delaware on December 10, 2003. From the date of incorporation through December 2007 the sole component of our business plan called for the producing and co-financing of motion pictures whose production budgets are estimated to range between $500,000 and $1,500,000, produced solely for distribution to the domestic and international home video markets.

As a result of not being able to raise the necessary funds to either co-finance or produce any motion pictures, management changed the Company’s business plan to that of producing and distributing self- improvement/educational DVDs and workforce training programs. The major reasons for this decision was that the funds needed to produce or acquire self- improvement/educational DVDs and workforce training programs are substantially less than required for the production of motion pictures. Additionally, our management has years of experience in the production and distribution of this type of product.

In November 2008, the Company commenced the production of a 47 minute “self-improvement/educational” DVD entitled, “The 5 Communication Secrets That Swept Obama to the Presidency.”

The DVD uses video examples of President Barack Obama’s most memorable speeches to illustrate five essential secrets of effective public and personal communication. International communication analyst and coach Richard Greene hosts the DVD and instructs in the system of communication techniques he created. The DVD was completed in February 2009, and is being sold and marketed to individuals via the internet and through distributors specializing in the sale of product to the educational market, i.e. libraries, universities etc. Additionally, the Company created a “Business Edition” version of the DVD. This version includes the 47 minute DVD, along with a Leader Guide, Participant workbook, and Power Point presentation. It is being marketed both domestically and internationally by distributors to organizations for the training of their personnel in communication skills.

Effective January 1, 2011, pursuant to an Asset Transfer, Assignment and Assumption Agreement, we acquired from Progressive Training, Inc. all of its assets and liabilities related to Progressive’s workforce training business. Among the assets we acquired in the transaction described above are fourteen training video programs including: Twelve Angry Men: Teams That Don't Quit. The video is based on the classic film starring Henry Fonda and utilizes 12 minutes of clips from the film, The Cuban Missile Crisis: A Case Study in Decision Making and Its Consequences. This video is based on the decision making process of President Kennedy and his Cabinet during the Cuban missile crisis, It’s a Wonderful Life: Leading Through Service, features film clips from the classic motion picture It’s a Wonderful Life, starring Jimmy Stewart, along with on-camera commentary by Dr. Wheatley, How Do You Put A Giraffe Into A Refrigerator? an animated short that is used as a meeting opener to stimulate the thinking of the participants, Character in Action: The United States Coast Guard on Leadership. This video demonstrates the highest qualities of leadership, and how to apply them, using the example of the United States Coast Guard. Additionally, we acquired the best-selling and critically acclaimed training video entitled Work Teams and The Wizard of Oz.

In addition to the assets listed above, we acquired a website, www.advancedknowledge.com for the online sale and marketing of our products. We market and sell all our training programs and self-improvement DVDs under the Company’s dba Advanced Knowledge.

Since the acquisition mentioned above we have worked to expand both our domestic and foreign distributor network. We have succeeded in establishing non-exclusive distribution agreements with a number of additional distributors to market and sell our product. In many instances, we have mutual non-exclusive distribution agreements to market/distribute their products.

During the second quarter of fiscal 2013, we will complete and distribute two new workforce training DVDs. The first DVD to be completed is based on the resourceful teamwork during the successful Chilean mine rescue. The second DVD teaches the extraordinary elements of teamwork employed by the Navy’s world renowned Blue Angel flight demonstration team.

Revenues

Our revenues for the three months ended May 31, 2012 were $12,262. These revenues were mainly derived from the sale of videos recently acquired from Progressive Training. Our revenues for the three months ended May 31, 2011 were $20,245. These revenues included sales of “The 5 Communication Secrets That Swept Obama to the Presidency” DVD in the amount of $90, royalty income related to the DVD in the amount of $3,065 and revenues in the amount of $17,090 derived from the sale of videos acquired from Progressive Training. The major reason for the decrease in revenues is the aging of the Company’s library of training programs. Management anticipates an increase in revenues during the remaining quarters of fiscal 2013, resulting from the imminent release of our new program entitled, “Chilean Mine Rescue: The Unstoppable Team,” and the forthcoming release of a training program inspired by the Navy’s Blue Angel flight demonstration team entitled, “The Power of Teamwork.”

The cost of revenues during the three months ended May 31, 2012 was $3,413. The cost of revenues during the three months ended May 31, 2011 was $4,302 which included the cost of videos purchased for resale under Progressive Training.

Expenses

General and Administrative

To date, our expenses have consisted mainly of selling, general and administrative expenses. The main components being compensation to the Company’s President, Buddy Young, in the amount of $10,400, of which $10,400 Mr. Young has waived reimbursement and the amount has been applied to additional paid-in capital, professional services and the amortization of our loan commitment fee. During the three months ended May 31, 2012, we incurred a total of $35,595 selling, general and administrative expenses, compared to a total of $26,126 during the three months ended May 31, 2011. This represents an increase of $9,469.

Interest Expense

We incurred $5,166 and $3,794 in interest expense during the three months ended May 31, 2012 and 2011, respectively. This is related to the interest charges we incur on our loan from Buddy Young in the amount of $3,197 and $1,488, respectively, along with interest charges of $1,969 and $2,306, respectively, on the line of credit and credit card debts associated with the asset and liability acquisition from Progressive Training.

Plan of Operation

During the past twelve months we concentrated our efforts on maximizing the revenue potential of the training programs we acquired in January 2011, by expanding our domestic and international distributor network. Additionally, we acquired the master distribution rights to a new training program entitled, “The Power of Teamwork”. The program is based on the extraordinary elements of teamwork employed by the Navy’s world renowned Blue Angel flight demonstration team. Further, during the first quarter of fiscal 2013, we developed and have completed production of a new training program entitled, “Chilean Mine Rescue: The Unstoppable Team.” This program focuses on the resourceful teamwork during the successful Chilean mine rescue. Both programs are scheduled to be released during the second quarter of fiscal 2013.

We anticipate that during the next 12 months our efforts will consist of: (a) raising funds through a private placement sale of equity, to be used for the purpose of adding to our library of programs, (b) continue to improve the functionality and visibility of our website advancedknowledge.com, (c) increase revenue by hiring additional commissioned sales personnel and (d) concentrate on the marketing and distribution of the two new training programs mentioned above.

We expect that cash resulting from the further sales and licensing of our existing programs, and the sales of the two new workforce training videos that we will release during fiscal 2013, along with the funds provided to us by our president and principal shareholder, under a promissory note dated February 16, 2005, as amended, will be sufficient to fund our cash requirements to continue our efforts through February 2013.

If during the next twelve months our revenue is insufficient to continue operations, and we are unable to raise funds through the sale of additional equity, or from traditional borrowing sources, we may be required to scale back our planned operations, or be forced to totally abandon our business plan and seek other business opportunities in a related or unrelated industry. Such opportunities may include a reverse merger with a privately held company. The result of which could cause the existing shareholders to be severely diluted.

Employees

Due to our very limited financial resources, the Company’s President, Buddy Young, along with Joseph Adelman, and Mel Powell, our Director of acquisitions, work on a part-time basis. We have one part-time employee and one commissioned sales person. Additionally, we regularly utilize the services of independent firms to handle our accounting and certain administrative matters. If and when our capital resource permits, we will hire full-time professional and administrative employees.

Liquidity and Capital Resources

We had a cash balance of $2,098 on May 31, 2012. Other than funds received from the sale of the library of videos acquired from Progressive Training, at this time, our only other known cash resource comes from an agreement with our President and majority shareholder to fund any shortfall in cash flow up to $200,000 at 8% interest through December 31, 2012. As of May 31, 2012 the balance owing on this agreement is $179,454. Payment of principal and interest is due on this loan on June 30, 2013.

We believe that revenue derived from the sale of the above mentioned programs, and further borrowings from our President will be sufficient to satisfy our budgeted cash requirement through February 28, 2013.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Based on the nature of our current operations, we have not identified any issues of market risk at this time.

ITEM 4. CONTROLS AND PROCEDURES

The principal executive officer and principal financial officer of the Company, who are the same person (“the Certifying Officer”) with the assistance of advisors, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in section 240.13a-14(c) and 240.15d-14(c) under the Exchange Act) within 90 days prior to the filing of this report. Based upon the evaluation, the Certifying Officer concludes that the Company’s disclosure controls and procedures are effective in timely alerting management to material information relative to the Company which is required to be disclosed in its periodic filings with the SEC.

There were no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES None.

ITEM 4. MINE SAFETY DISCLOSURES Not Applicable

ITEM 5. OTHER INFORMATION None.

ITEM 6. EXHIBITS

	31.1	Certification of CEO Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	101.INS	XBRL Instance Document

	101.SCH	XBRL Taxonomy Extension Schema Document

	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document

	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

	101.LAB	XBRL Taxonomy Extension Label Linkbase Document

	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FUTURA PICTURES, INC. (Registrant)

Dated: July 10, 2012	/s/ Buddy Young Buddy Young, President and Chief Executive Officer

IMK GROUP, INC. - FORM 10-Q - July 11, 2012

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IMK GROUP, INC. Reports