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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

 
WRITERS’ GROUP FILM CORP.
 
a Delaware corporation

8200 Wilshire Boulevard,
Suite 200
Beverly Hills, CA  90211
310.461.3737
 
Commission file number: 333-156832
 
I.R.S. Employer I.D. #: 56-2646829

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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  x Yes  o 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 (§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 o    No  o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
 
Large accelerated filer
o
Accelerated filer 
o
Non-accelerated filer 
o
Smaller reporting company
x
(Do not check if a smaller reporting company)
     
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  o Yes   x No
 
The number of shares outstanding of our Common Stock is 707,990,925 as of November 19, 2012
 
The number of shares outstanding of our Preferred Stock is 20,000 as of November 19, 2012.

 There are no other classes of stock.
 


 
 

 
 
 Writers' Group Film Corp.
 Consolidated Balance Sheets
 (unaudited)
 
   
September 30,
   
March 31,
 
   
2012
   
2012
 
Assets
           
Current Assets
           
Cash and cash equivalents
  $ 4,086     $ 15,599  
Accounts receivables, net
    200       200  
Accounts receivables - related party, net
    -       46,800  
Prepaid expense and other assets
    2,154       153  
Deferred financing costs
    2,500       -  
Due from related parties - short term
    -       208  
Total current assets
    8,940       62,960  
Total Assets
  $ 8,940     $ 62,960  
                 
Liabilities and Shareholders' Deficit
               
Current Liabilities
               
Accounts payable
  $ 35,169     $ 50,656  
Accrued liability
    234,771       49,999  
Convertible debts, net of unamortized discount of $9,495 and $15,120, respectively
    17,117       4,612  
Convertible debts - related party, net of unamortized discount of $0
    20,450       20,450  
Notes payable
    70,000       45,000  
Due to related parties - short term
    61,169       60,562  
Derivative liabilities
    289,487       529,583  
Total current liabilities
    728,163       760,862  
Total Liabilities
    728,163       760,862  
                 
Shareholders' Deficit
               
Preferred Stock:
               
Series A convertible preferred stock, $.00001 par, 130,000,000 shares authorized, 10,000 shares issued and outstanding
    -       -  
Series B convertible preferred stock, $.00001 par, 70,000,000 shares authorized, 10,000 shares issued and outstanding
    -       -  
Series C convertible preferred stock, $.00001 par, 20,000,000 shares authorized, none issued and outstanding
    -       -  
Common stock, $0.00001 par, 20,000,000,000 shares authorized, 581,411,978 and 535,120,750 shares issued and outstanding, respectively
    5,815       5,352  
Additional paid in capital
    (505,534 )     (471,762 )
Retained deficit
    (219,504 )     (231,492 )
Total shareholders' deficit
    (719,223 )     (697,902 )
Total Liabilities and Shareholders' Deficit
  $ 8,940     $ 62,960  
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
 
2

 
 
 Writers' Group Film Corp.
 Consolidated Statement of Operations
 (unaudited)
 
   
For The Three Months Ended September 30,
   
For The Six Months Ended September 30,
 
   
2012
   
2011
   
2012
   
2011
 
 Revenues
                       
          Related party
    6,110       -       6,110       -  
 Total revenue
    6,110       -       6,110       -  
 Operating Costs and Expenses
                               
 Wages and benefits
    188,041       81,910       226,051       148,269  
 Audit and accounting
    10,000       33,610       30,400       44,830  
 Legal fee
    11,712       45,400       16,089       64,306  
 Other general and administrative
    14,010       54,031       24,621       70,393  
 Total operating expenses
    223,763       214,951       297,161       327,798  
                                 
 Loss from operations
    (217,653 )     (214,951 )     (291,051 )     (327,798 )
                                 
 Other income (expense)
                               
 Gain from derivative liability
    101,103       -       359,120       -  
 Interest expense
    (48,870 )     (4,962 )     (56,081 )     (7,373 )
 Net income (loss)
    (165,420 )     (219,913 )     11,988       (335,171 )
                                 
 Net income (loss) per share:
                               
 Basic
  $ -     $ -     $ -     $ -  
 Diluted
  $ -     $ -     $ -     $ -  
                                 
 Weighted average common shares outstanding:
                               
 Basic
    554,580,476       492,677,707       548,682,192       453,648,127  
 Diluted
    554,480,476       492,677,707       3,109,069,384       453,648,127  
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
 
3

 
 
 Writers' Group Film Corp.
 Consolidated Statement of Cash Flows
 (unaudited)
 
   
For The Six Months Ended September 30,
 
   
2012
   
2011
 
             
Cash Flows From Operating Activities
           
 Net Income/(Loss)
  $ 11,988     $ (335,171 )
Adjustments to reconcile net income (loss) to net cash used in operating activities:
         
 Gain on Derivative Liability
    (359,120 )     -  
 Shares issued for services
    -       22,000  
 Amortization of debt discount
    50,625       6,035  
 Imputed interest on related party loan
    2,596       -  
 Changes in operating assets and liabilities:
               
 Account receivable
    -       25,000  
 Account receivable, related party
    46,800       -  
 Prepaid expenses and other assets
    (2,002 )     (11,500 )
 Accounts payable
    (15,487 )     77,790  
 Accrued liabilities
    184,772       50,607  
Net cash used in operating activities
    (79,828 )     (165,239 )
                 
Cash Flows From Investing Activities
               
 Loan repayment by related parties
    208       (1,000 )
Net cash provided by (used in) investing activities
    208       (1,000 )
                 
Cash Flows From Financing Activities
               
 Borrowing on short term notes payable
    70,000       124,800  
 Advances from related parties
    607          
 Deferred financing costs
    (2,500 )     -  
Net cash provided by financing activities
    68,107       124,800  
                 
Net decrease in cash and cash equivalents
    (11,513 )     (41,439 )
Cash and cash equivalents, beginning of period
    15,599       58,598  
Cash and cash equivalents, end of period
  $ 4,086     $ 17,159  
                 
                 
Supplemental disclosure information:
               
 Income taxes paid
  $ -     $ -  
 Interest paid
  $ -     $ -  
Non-cash financing activities:
               
 Common Shares issued for convertible debt
  $ 38,120     $ 1,300  
 Debt discount resulting from recognition of derivative liability
  $ 45,000     $    
 Reclassification of derivative liabilities to additional paid in capital
  $ 74,025     $    
 Reclassification from nonconvertible debt to convertible debt
  $ 45,000          
 Shares issued for preferred stock
  $ -     $ 170  
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
 
4

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
NOTE 1 – ORGANIZATION, BUSINESS OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Writers’ Group Film Corp. (“we”, “our”, “WRIT” or the “Company”) was incorporated in Delaware on March 9, 2007 to produce films, television programs and similar entertainment programs for various media formats.
 
Front Row Networks, Inc. (“Front Row”) was incorporated on July 27, 2010 in Nevada. The Company is a content creation company which produces, acquires and distributes live concerts in 3D for initial worldwide digital broadcast into digitally-enabled movie theaters, TV and mobile streaming providers.
 
On February 25, 2011, the Company acquired Front Row in exchange for 100,000,000 common shares in a transaction accounted for as a reverse merger. As a result of this transaction, Front Row’s shareholders became the Company’s majority shareholders.

The accompanying unaudited interim financial statements of Writers’ Group Film Corp. have been prepared in accordance with accounting principles generally accepted in the United States of America and rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the initial period ended March 31, 2012 as filed with the SEC.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements as reported in the annual report on Form 10-K have been omitted.
 
Correction of Prior Period
 
In accordance with the SEC’s Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”), the Company recorded a non-cash adjustment for the year ended March 31, 2012 which served to reduce additional paid-in capital by $566,072 and increase debt discount and retained earnings by $9,942 and $556,130, respectively. This non-cash adjustment resulted from liability classification of a conversion option embedded in existing convertible debt that was reclassified from equity to a liability due to the issuance of another instrument that contained no explicit limit to the number of shares to be issued upon settlement.  The issuance of the new convertible instrument caused all other share-settleable instruments to be reclassified to liabilities on the date of issuance.  The transaction was originally recorded as an increase in derivative liability of $566,072, loss on derivative liability of $541,010 and an increase in debt discount of $25,062, when it should have been recorded as a decrease in additional paid in capital of $566,072 and an increase in derivative liability of $566,072. Consequently, the March 31, 2012, balance sheet and the statements of operations, cash flows and stockholders’ equity (deficit) for year ended March 31, 2012 were adjusted to reflect the correction of this error. In evaluating materiality and determining the appropriateness of applying SAB 108 to this error, the Company considered materiality both qualitatively and quantitatively as prescribed by the SEC’s Staff Accounting Bulletin No. 99
 
 
5

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
Fair Value of Measurement
 
As defined in ASC 820 “Fair Value Measurements”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).
 
The three levels of the fair value hierarchy defined by ASC 820 are as follows:
 
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.
 
Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.
 
Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
 
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of September 30, 2012. As required by ASC 820, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
 
As of September 30, 2012
 
Total
   
Quoted Prices in Active Markets for Identical Instruments Level 1
   
Significant Other Observable Inputs
Level 2
   
Significant Unobservable Inputs Level 3
 
Liabilities:
                       
Derivative liabilities
  $ 289,487                     $ 289,487  
 
NOTE 2 – GOING CONCERN

As reflected in the accompanying consolidated financial statements, the Company has an accumulated deficit of $219,504 at September 30, 2012 that includes income of $11,988 for the six months ended September 30, 2012. The Company also had a working capital deficiency of $719,223 at September 30, 2012.  These factors raise substantial doubt about the ability of the Company to continue as a going concern.  The consolidated financial statements have been prepared on a going concern basis and do not include any adjustments that might result from outcome of this uncertainty.

 
6

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful.
 
NOTE 3 - RELATED PARTY BALANCES AND TRANSACTIONS
 
Accounts receivable from related party

During the six months ended September 30, 2012, 3D Conversion Rights paid $46,800 to the Company. The remaining receivable from 3D Conversion Rights was zero at September 30, 2012.

Due to related party

Due to related party consists of the following:
 
   
September 30, 2012
   
March 31, 2012
 
Nancy Louise Jones   $ 60,562     $ 60,562  
Other    $ 607       -  
Total   $ 61,169     $ 60,562  
 
Mrs. Nancy Louise Jones

On November 26, 2010, the Company borrowed $60,562 from Mrs. Nancy Louise Jones, wife of Mr. John Diaz, the CEO and major shareholder. The maturity date of this loan is September 1, 2012 and was extended to September 8, 2013. The Company evaluated the application of ASC 470-50 and ASC 470-60 and concluded that the extension of maturity constituted a debt modification, rather than a debt extinguishment or a troubled debt restructuring. As this loan bears no interest, in accordance with ASC 835-30 Imputation of Interest, the Company uses 8%, the prevailing rate for similar debt, to recognize the imputed interest expense of $2,596 on this debt for the six months ended September 30, 2012. The imputed interest expense is accounted as a capital transaction and recorded as an increase of Additional Paid-In Capital.

NOTE 4 – NOTES PAYABLE

Note payable consists of the following:

   
September 30, 2012
   
March 31, 2012
 
Note payable
  $ 70,000     $ 45,000  
 
Asher Enterprises Note Payable

On April 23, 2012, the Company borrowed $32,500 from Asher Enterprises.  The maturity date of this note is January 25, 2013.  This loan bears an interest rate of 8% per annum.  Interest on overdue principal after default accrues at an annual rate of 22%.  After 180 days following the date of the note, Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock.  The conversion price will be 49% multiplied by the average of the lowest two trading prices for the Common Stock during the twenty trading day period ending on the latest complete trading day prior to the conversion date.As of September 30, 2012, the note payable is not convertible.

In July, 2012, the Company borrowed $37,500 from Asher Enterprises. The maturity date of this note is March 25, 2013.  This loan bears an interest rate of 8% per annum.  Interest on overdue principal after default accrues at an annual rate of 22%.  After 180 days following the date of the note, Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock.  The conversion price will be 53% multiplied by the average of the lowest two trading prices for the Common Stock during the forty trading day period ending on the latest complete trading day prior to the conversion date. As of September 30, 2012, the note payable is not convertible.

 
7

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
NOTE 5 – CONVERTIBLE DEBT
 
Convertible debts outstanding, net of debt discount of $15,120 on March 31, 2012
  $ 4,612  
Add: reclassification from nonconvertible debt to convertible debt, net of debt discount of $45,000
    -  
Less: principal converted into common stock
    (38,120 )
Add: amortization of debt discount
    50,625  
Convertible debts outstanding, net of debt discount of $9,495 on September 30, 2012
  $ 17,117  
 
Asher Enterprise, Inc.

On February 9, 2012, the Company borrowed $45,000 from Asher Enterprises.  The maturity date of this note is November 10, 2012.  This loan bears an interest rate of 8% per annum.  Interest on overdue principal after default accrues at an annual rate of 22%.  On August 7, 2012, after 180 days following the date of the issuance, the note became convertible and was reclassified from nonconvertible debts. Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock.  The conversion price is 58% multiplied by the average of the lowest two trading prices for the Common Stock during the twenty trading day period ending on the latest complete trading day prior to the conversion date.On August 20, 2012, the Company converted $12,000 convertible note into 13,333,333 common shares at $0.0009 per share.On September 10, 2012, the Company converted $11,000 convertible note into 25,000,000 common shares at $0.00044 per share.  The remaining convertible loan balance outstanding as of September 30, 2012 is $22,000.

On March 29, 2012, Asher Enterprises, Inc. purchased a convertible note for $15,120 with an annual interest rate of 10%, from Armada International, which is a related party. The new Asher convertible note is due on demand, with interest at 10%, and changes the conversion price from $0.00001 to 58% multiplied by the average of the lowest two trading prices for the Common Stock during the twenty trading day period ending on the latest complete trading day prior to the conversion date.On April 2, 2012, the Company converted the $10,000 convertible note into 5,263,158 common shares at $.0019 per share.On April 9, 2012, the Company converted the $5,120 convertible note into 2,694,737 common shares at $.0019 per share, bringing the balance of Asher convertible debt to zero.

The Company analyzed the conversion feature of both Asher notes for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded conversion feature should be classified as a liability due to their being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The embedded conversion feature was measured at fair value at the date of inception and at the end of each reporting period or termination of the instrument with the change in fair value recorded to earnings.

Other Third Party Convertible Notes

The convertible debts were issued in September 2009, bear an interest rate at 8% per annum, due in one year, and are convertible at $0.00001 per share. The debts are in default at September 30, 2012.  As a result of the issuance of convertible debt to Asher Enterprise on March 29, 2012 and the reclassification of Asher Enterprise nonconvertible note to convertible note on August 7, 2012, the conversion option of all other third party convertible notes became tainted. Under ASC 815-15 “Derivatives and Hedging”, it should be reclassified from equity to liability. See discussion in Note 7.

During the six months ended September 30, 2012, $50,625 of the debt discount was amortized.

 
8

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
NOTE 6 – CONVERTIBLE DEBTS – RELATED PARTY
 
Convertible debts – related party outstanding, net of debt discount of $0 on September 30 and March 31, 2012
  $ 20,450  
 
These convertible debts were originally issued in March, and December 2010, respectively, bear an interest rate at 8% per annum, due in one year, and are convertible at $0.00001 per share. The debts are in default as of September 30, 2012. The Company had conversion options embedded in related party convertible notes of $20,450. As a result of the issuance of convertible debt to Asher Enterprise on March 29, 2012 and the reclassification of Asher Enterprise nonconvertible note to convertible note on August 7, 2012, the conversion option of all other related party convertible notes became tainted. Under ASC 815-15 “Derivatives and Hedging”, it should be reclassified from equity to liability. See discussion in Note 7.
 
NOTE 7 – DERIVATIVE LIABILITIES

Asher Enterprise Inc

As discussed in Note 5, the Company determined that the instruments embedded in both convertible notes should be classified as liabilities and recorded at fair value due to their being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The fair value of the instruments was determined using multinomial lattice model based on the following assumptions:

- The projected volatility curve for each valuation period was based on the historical volatility of 20 comparable companies.
- 1-year Volatility 156%-167%
- An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 5%;
- Asher would redeem based on availability of alternative financing, increasing 2.0% monthly to a maximum of 20%;
- Asher would automatically convert the note at maturity if the registration was effective and the company was not in default.

The fair value of the conversion feature of $15,120 Asher note issued on March 29, 2012 was determined to be $23,309. Out of $23,309, $15,120 was recognized as debt discount and $8,189 was recognized as loss on extinguishment of debt. As a result of the note conversions in April, 2012, under ASC 815-15 “Derivatives and Hedging”, the instruments are measured at fair value at the date of termination with the change in fair value recorded to earnings. The fair value of the instrumentsrelated to $10,000 Asher note converted on April 2, 2012 was $16,483 and this value was reclassified out of liabilities to equity. The fair value of the instruments related to $5,120 Asher note converted on April 9, 2012 was $8,524 and this value was reclassified out of liabilities to equity.
 
 
9

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
As discussed in Note 5, $45,000 Asher notes issued on February 9, 2012 became convertible on August 7, 2012. The fair value of the conversion feature was determined to be $65,835. Out of $65,835, $45,000 was recognized as debt discount and $20,835 was recognized as loss on derivative. As a result of the note conversions in August and September, 2012, under ASC 815-15 “Derivatives and Hedging”, the instruments are measured at fair value at the date of conversions with the change in fair value recorded to earnings. The fair value of the instruments related to $12,000 Asher note converted on August 20, 2012 was $16,589 and fair value of the instruments related to $11,000 Asher note converted on September 10, 2012 was $15,069, this value was reclassified out of liabilities to equity.
 
Other Third Party and Related Party Convertible Notes

The fair value of the instruments was determined based on the following assumptions:

- The projected volatility curve for each valuation period was based on the historical volatility of 20 comparable companies.

- 1-year Volatility 156%-167%

- An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 5%;

- The holder redeem based on availability of alternative financing, increasing 20.0% monthly to a maximum of 95%;

- The holder would convert monthly (equal to the average trading volume over the last 6 months)

- The holder have not converted to date despite the conversion option being in the money, so no trigger price for early conversion was considered.

As discussed in Note 5 and Note 6, as a result of the Asher convertible note issued on March 29, 2012, under ASC 815-15 “Derivatives and Hedging”, all other share-settle able instruments must be reclassified from equity to liability. The fair value of the conversion feature on March 29, 2012 was determined to be $566,072, and this was recorded as a deduction in Additional Paid-in Capital. As a result of full conversion of Asher note on April 9, 2012, under ASC 815-15 “Derivatives and Hedging”, all other tainted share settle able instruments must be measured at fair value of termination with the change in fair value recorded to earnings. The fair value of the conversion feature on April 9, 2012 was $246,559 and this value was reclassified out of liabilities to equity.

As discussed in Note 5, on August 7, 2012, $45,000 Asher note issued on February 9, 2012 became convertible. Under ASC 815-15 “Derivatives and Hedging”, all other share-settle able instruments must be reclassified from equity to liability. The fair value of the conversion feature on August 7, 2012 was determined to be $377,248 and this was recorded as a deduction in Additional Paid-in Capital.

Under ASC 815-15 “Derivatives and Hedging”, the derivative liabilities were subsequently measured at fair value at the end of each reporting period with the change in fair value recorded to earnings. The fair value of the conversion feature of all the convertible notes on September 30, 2012 was $289,487 and $359,120 was recognized as gain on derivative liabilities for the six months ended September 30, 2012.
 
 
10

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
The following table summarizes the derivative liabilities included in the consolidated balance sheet:
 
Derivative Liabilities
     
Balance at March 31, 2012
  $ 529,583  
ASC 815-15 addition (Asher)
    65,835  
ASC 815-15 addition (other)
    377,248  
ASC 815-15 deletion (Asher)
    (56,665 )
ASC 815-15 deletion (other)
    (246,559 )
Change in fair value
    (379,955 )
Balance at September 30, 2012
  $ 289,487  

The following table summarizes the derivative (gain) or loss recorded for the six months ended September 30, 2012 as a result of the derivative liabilities above:

Derivative Liabilities
     
Balance at March 31, 2012
  $ 0  
Excess of fair value of the derivative over note payable (Asher)
    20,835  
Change in fair value
    (379,955 )
Balance at September 30, 2012
  $ (359,120 )
 
NOTE 8 – EQUITY

Shares issued for convertible notes:

During the six months ended September 30, 2012, $38,120 of convertible debts was converted into 46,291,228 common shares. See Note 5.

 
11

 
 
WRITERS’ GROUP FILM CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
NOTE 9 – NET INCOME (LOSS) PER SHARE

The following is reconciliation between basic earnings per share (“EPS”) and diluted earnings per share for the six months ended September 30, 2012:

   
For the six months ended
 
   
September 30, 2012
 
   
Income (Loss)
   
Weighted Average Shares Outstanding
   
Per Share
 
Basic:
                 
Income attributable to common stock
  $ 11,988       548,682,192     $ 0.00  
Effect of Dilutive Securities:
                       
Convertible debt
    (347,277 )     2,560,387,192       (0.00 )
Diluted:
                       
Income attributable to common stock, including assumed conversions
  $ (335,289 )     3,109,069,384     $ (0.00 )

There is no dilutive security for for the six months ended September 30, 2012.

NOTE 10 – SUBSEQUENT EVENTS
 
On October 1, 2012, the Company converted the $11,000 convertible note dated February 9, 2012, into 28,947,368 common shares at $0.00038 per share.

On October 9, 2012, the Company converted the $700 convertible note dated March 15, 2010, into 70,000,000 common shares at $0.0001 per share.

On October 16, 2012, the Company converted the $10,500 convertible note dated February 9, 2012, into 27,631,579 common shares at $0.00038 per share.
 
On November 2, 2012, the Company borrowed $16,000 from Asher Enterprises. The maturity date of this note is August 5, 2013.  This loan bears an interest rate of 8% per annum.  Interest on overdue principal after default accrues at an annual rate of 22%.  After 180 days following the date of the note, Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock.  The conversion price will be 25% multiplied by the lowest trading price  for the Common Stock during the 120 trading day period ending on the latest complete trading day prior to the conversion date.  Along with the convertible note, the Company issued the warrant to Asher Enterprise to purchase 49,230,769 fully paid and non-assessable common shares of the Company at an exercise price of $0.0000325. The warrant expires in five years.
 
 
12

 
 
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
 
Special Note Regarding Forward Looking Statements
 
In addition to historical information, this report contains 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. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A “Risk Factors” in our annual report on Form 10-K for fiscal year ended March 31, 2012, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Forward looking statements made by penny stock issuers are excluded from the safe harbors in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the Security and Exchange Commission (“SEC”). These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Overview

Writers’ Group Film Corp. (“we”, “us”, “our”, “WRIT”, or the “Company”) was incorporated in Delaware on March 9, 2007 to produce films, television programs and similar entertainment programs for various media formats.

Front Row Networks (“FRN”) was incorporated on July 27, 2010 in the State of Nevada. The Company is a content creation company which intends to produce, acquire and distribute live concerts in 3D for initial worldwide digital broadcast into digitally-enabled movie theaters. This new concept is intended to present live concerts in 3D, at lower ticket prices, to a massive fan base worldwide in a cost-effective manner. Following the initial 3D theatrical run, the distribution rights to the concerts will be licensed, in both 2D and 3D format, to DVD and Blu-Ray retailers, Free TV broadcasters, cable and emerging 3D cable channels, and mobile streaming providers. Front Row Networks will also sell merchandising, such as clothing, household goods, and other products, tailored to each Artist and to each Sponsor, in movie theaters where the live concert is exhibited

In February 2011, FRN completed a reverse acquisition transaction through a share exchange with WRIT, whereby WRIT acquired 100% of the issued and outstanding capital stock of FRN in exchange for 100,000,000 shares of the Common Stock of WRIT. As a result of the reverse acquisition, FRN became WRIT’s wholly-owned subsidiary and the former FRN’s shareholders became controlling stockholders of WRIT. The share exchange transaction with WRIT was treated as a reverse acquisition, with FRN as the accounting acquirer and WRIT as the acquired party.

Consequently, the assets and liabilities and the historical operations that will be reflected in the consolidated financial statements for periods prior to the Share Exchange Agreement will be those of FRN and will be recorded at the historical cost basis. After the completion of the Share Exchange Agreement, the Company’s consolidated financial statements will include the assets and liabilities of both FRN and WRIT, the historical operations of FRN and the operations of WRIT from the closing date of the Share Exchange Agreement.

On July 7, 2011, we modified our February 2011 Share Exchange Agreement and agreed to assume $100,000 in new debt which is shown as a reduction of our Paid-In Capital.
 
 
13

 
 
Results of Operations
 
The following table sets forth key components of our results of operations for the three and six months ended September 30, 2012 and 2011.

   
For The Three Months Ended September 30,
   
For The Six Months Ended September 30,
 
   
2012
   
2011
   
2012
   
2011
 
Total Revenue
  $ 6,110       -     $ 6,110       -  
Wages and benefits
    188,041       81,910       226,051       148,269  
Audit and accounting
    10,000       33,610       30,400       44,830  
Legal fee
    11,712       45,400       16,089       64,306  
Other general and administrative
    14,010       54,031       24,621       70,393  
Loss from operations
    (217,653 )     (214,951 )     (291,051 )     (327,798 )
Gain from derivative liability
    101,103       -       359,120       -  
Interest expense
    (48,870 )     (4,962 )     (56,081 )     (7,373 )
Net income (loss)
  $ (165,420 )     (219,913 )   $ 11,988       (335,171 )
 
Three Months Ended September 30, 2012 and 2011

Revenues. Revenues from related party increased to $6,110 from $0 for the three months ended September 30, 2012 as compared to the same period in 2011. The increase in revenue is primarily due to license fees generated from the Company’s exclusive right and license of certain 2D and 3D completed motion pictures.

Wages and benefits.  Wages and benefits expenses increased by $106,131 and 129.57% for the three months ended September 30, 2012 as compared to the same period in 2011. The increase is mainly due to new employment agreements put in place during the quarter.

Audit and accounting.  Audit and accounting expenses decreased by $(23,610) and 70.25% for the three months ended September 30, 2012 as compared to the same period in 2011. The decrease in the audit and accounting expense is mainly related to cost management of the expenses.

Legal fee.  Legal fee decreased by $(33,688) and 74.20% for the three months ended September 30, 2012 as compared to the same period in 2011. The decrease in legal fee is mainly related to settlement of the George Sharp lawsuit in February 2012.

Other general and administrative expenses.  Other general and administrative expenses decreased by $(40,021) and 74.07% for the three months ended September 30, 2012 as compared to the same period in 2011. Those expenses consist primarily of company’s business development, consulting fees and other expenses incurred in connection with general operations. The decrease is mainly related to cost management of the expenses.

Loss from operations. Our loss from operations was $217,653 for the three months ended September 30, 2012 and $214,951 for the same period in 2011.

Gain or loss from derivative liability. We recorded a gain from derivative liability of $101,103 for the three months ended September 30, 2012, which is discussed in more detail in Note 5 “Convertible Debt”, Note 6 “Convertible Debt – Related Party” and Note 7 “Derivative Liabilities” to our consolidated financial statements. There is no gain or loss from derivative liability for the three months ended September 30, 2011.

Interest expense. We incurred $48,870 interest expense for the three months ended September 30, 2012 and $4,962 for the same period in 2011. The increase in interest expense is mainly related to the amortization of debt discount.

Net income or loss. As a result of the foregoing factors, we generated a net loss of $165,420 for the three months ended September 30, 2012, and we generated a net loss of $219,913 for the same period in 2011. The decrease in the net loss is mainly related to cost management of the operating expenses.
 
 
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Six Months Ended September 30, 2012 and 2011

Revenues  Revenues from related party increased to $6,110 from $0 for the six months ended September 30, 2012 as compared to the same period in 2011. The increase in revenue is primarily due to license fees generated from the Company’s exclusive right and license of certain 2D and 3D completed motion pictures.
 
Wages and benefits.  Wages and benefits expenses increased by $77,782 and 52.46% for the six months ended September 30, 2012 as compared to the same period in 2011. The increase is mainly due to new employment agreements put in place during the quarter.

Audit and accounting.  Audit and accounting expenses decreased by ($14,430) and 32.19% for the six months ended September 30, 2012 as compared to the same period in 2011. The decrease in the audit and accounting expense is mainly related to cost management of the expenses.  .

Legal fee.  Legal fee decreased by ($48,217) and 74.98% for the six months ended September 30, 2012 as compared to the same period in 2011. The decrease in legal fee is mainly related to settlement of the George Sharp lawsuit in February 2012.

Other general and administrative expenses.  Other general and administrative expenses decreased by  ($45,772) and 65.02% for the six months ended September 30, 2012 as compared to the same period in 2011. Those expenses consist primarily of company’s business development, consulting fees and other expenses incurred in connection with general operations. The decrease   is mainly related to cost management of the expenses.

Loss from operations. Our loss from operations was $291,051 for the six months ended September 30, 2012 and $327,798 for the same period in 2011. The decrease is mainly related to cost management of the operating expenses.

Gain or loss from derivative liability. We recorded a gain from derivative liability of $359,120 for the six months ended September 30, 2012, which is discussed in more detail in Note 5 “Convertible Debt”, Note 6 “Convertible Debt – Related Party” and Note 7 “Derivative Liabilities” to our consolidated financial statements. There is no gain or loss from derivative liability for the six months ended September 30, 2011.

Interest expense. We incurred $56,081 interest expense for the six months ended September 30, 2012 and $7,373 for the same period in 2011. The increase in interest expense is mainly related to the amortization of debt discount.

Net income or loss. As a result of the foregoing factors, we generated a net income of $11,988 for the six months ended September 30, 2012, and we generated a net loss of $335,171 for the same period in 2011. The decrease in the net loss is mainly related to cost management of the operating expenses and the increase in gain from derivative liabilities.
 
 
15

 

Liquidity and Capital Resources

As reflected in the accompanying consolidated financial statements, the Company has accumulated deficits of $219,504 at September 30, 2012 that includes income of $11,988 for the six months ended September 30, 2012. The Company also had a working capital deficiency of $719,223 as of September 30, 2012.  These factors raise substantial doubt about the ability of the Company to continue as a going concern. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful.

As of September 30, 2012 and March 31, 2012, we have $4,086 and $15,599 cash and cash equivalents, respectively. The following table provides detailed information about our net cash flows for all financial statement periods presented in this report. To date, we have financed our operations primarily through cash flows from operations and borrowings from third and related parties.
 
   
For The Six Months Ended September 30,
 
   
2012
   
2011
 
Net cash used in operating activities
  $ (79,828 )   $ (165,239 )
Net cash provided by (used in) investing activities
    208       (1,000 )
Net cash provided by financing activities
    68,107       124,800  
Net decrease in cash and cash equivalents
    (11,513 )     (41,439 )
Cash and cash equivalents at beginning of the period
    15,599       58,598  
Cash and cash equivalents at end of the period
  $ 4,086     $ 17,159  
 
Operating activities

Net Cash used in operating activities of $79,828 for the six  months ended September 30, 2012 reflected our net income of $11,988, adjusted for $50,625 of amortization of debt discount and $2,596 imputed interest on related party loan and $359,120 gain on derivative liability. Additional sources of cash include decreases in accounts receivable from related party of $46,800 and increase in accrued liability of $184,772. Uses of cash included an increase in prepaid expenses of $2,002 and decrease in accounts payable of $15,487.

Net cash used in operating activities was $165,239 for the six month ended September 30, 2011. The net cash used in operating activities is primarily due to the net loss and partially offset by shares issued for services, the decrease in accounts receivable and increase in accounts payable and accrued liabilities.

Investing activities
 
The net cash provided by investing activities for the six months ended September 30, 2012 is primarily due to repayment of $208 by a related party of the borrowing from the Company.

The net cash used in investing activities for the six months ended September 30, 2011 is primarily due to funds of $1,000 lent to related parties during the period.

Financing activities
 
Net cash provided by financing activities of $68,107 for the six months ended September 30, 2012 includes funds of $70,000 borrowed from third party, $607 borrowed from related party,  and payment of $2,500 for deferred financing costs.

Net cash provided by financing activities was $124,800 for the six months ended September 30, 2011. The net cash provided by financing activities is primarily due to short term borrowings during the quarter.
 
 
16

 
 
Loan Commitments

Borrowings from Related Parties

The Company entered into a loan agreement with Mrs. Nancy Louise Jones, wife of Mr. John Diaz, the CEO and major shareholder of the Company, on November 26, 2010, to borrow $60,562 with maturity date of September 8, 2013. This loan bears no interest.

Borrowings from Third Parties

On February 9, 2012, the Company borrowed $45,000 from Asher Enterprises.  The maturity date of this note is November 10, 2012.  This loan bears an interest rate of 8% per annum from the issuance date before default.  Interest on overdue principal after default accrues at an annual rate of 22%.  On August 7, 2012, after 180 days following the date of the issuance, the note became convertible . Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock. The conversion price is 58% multiplied by the average of the lowest two trading prices for the Common Stock during the twenty trading day period ending on the latest complete trading day prior to the conversion date. On August 20, 2012, Asher Enterprises converted $12,000 into 13,333,333 shares of the Company’s Common Stock. On September 10, 2012, Asher Enterprises converted $11,000 into 25,000,000 shares of the Company’s Common Stock. As of September 30, 2012, the principal balance of the note payable is $22,000.

On April 23, 2012, the Company borrowed $32,500 from Asher Enterprises.  The maturity date of this note is January 25, 2013.  This loan bears an interest rate of 8% per annum.  Interest on overdue principal after default accrues at an annual rate of 22%.  After 180 days following the date of the note, Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock.  The conversion price will be 49% multiplied by the average of the lowest two trading prices for the Common Stock during the twenty trading day period ending on the latest complete trading day prior to the conversion date. As of September 30, 2012, the note payable is not convertible.

In July, 2012, the Company borrowed $37,500 from Asher Enterprises. The maturity date of this note is March 25, 2013.  This loan bears an interest rate of 8% per annum.  Interest on overdue principal after default accrues at an annual rate of 22%.  After 180 days following the date of the note, Asher Enterprises has the right to convert all or a portion of the remaining outstanding principal amount of this note into shares of the Company’s Common Stock.  The conversion price will be 53% multiplied by the average of the lowest two trading prices for the Common Stock during the forty trading day period ending on the latest complete trading day prior to the conversion date. As of September 30, 2012, the note payable is not convertible.


Obligations under Material Contracts
 
Except with respect to the loan obligations disclosed above, we have no obligations to pay cash or deliver cash to any other party.
 
Inflation
 
Inflation and changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management will closely monitor price changes in our industry and continually maintain effective cost controls in operations.
 
 
17

 
 
Off Balance Sheet Arrangements
 
We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.
 
Seasonality
 
Our operating results and operating cash flows historically have not been subject to seasonal variations. This pattern may change, however, as a result of new market opportunities or new product introduction.

Critical Accounting Policies
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting policies are those that are most important to the portrayal of our financial conditions and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements:
 
·   
Accounts Receivable: Accounts receivable are recorded at the net invoice value and are not interest bearing. We consider receivables past due based on the contractual payment terms. We perform ongoing credit evaluations of our customers, and generally we do not require collateral on our accounts receivable. We estimate the need for allowances for potential credit losses based on historical collection activity and the facts and circumstances relevant to specific customers and we record a provision for uncollectible accounts when collection is uncertain. To date, we have not experienced significant credit related losses.
·   
Revenue Recognition: We recognize revenues when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured.
 
Recent Accounting Pronouncements
 
We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.
 
 
18

 

CONTROLS AND PROCEDURES.
 
(a)
Evaluation of Disclosure Controls and Procedures
 
As of the end of the period covered by this Quarterly Report, we conducted an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, the CEO and CFO concluded that, because of the material weaknesses in our internal control over financial reporting described below, our disclosure controls and procedures were not effective as of September 30, 2012. The Company has taken the steps described below to remediate such material weaknesses.
 
(b)
Internal Control over Financial Reporting
 
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ("GAAP"). The Company’s internal controls over financial reporting include policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; (2) provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’ assets that could have a material effect on our financial statements. Under the supervision and with the participation of our management, including our CEO, we evaluated the effectiveness of our internal control over financial reporting as of September 30, 2012. In its evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on our assessment and the criteria described above, management has concluded that, as of September 30, 2012, our internal control over financial reporting was not effective. We have noted the following deficiencies in our control environment:
 
1. Deficiencies in Our Control Environment. Our control environment did not sufficiently promote effective internal control over financial reporting throughout the organization. This material weakness exists because of the aggregate effect of multiple deficiencies in internal control which affect our control environment, including: a) the lack of an effective risk assessment process for the identification of fraud risks; b) the lack of an internal audit function or other effective mechanism for ongoing monitoring of the effectiveness of internal controls; c) deficiencies in our accounting system and controls which resulted in the theft by former CEO; d) and insufficient documentation and communication of our accounting policies and procedures as of September 30, 2012.
 
2. Deficiencies in the staffing of our financial accounting department. Management had engaged an outside accounting consultant to assist in the financial reporting. However, the number of qualified accounting personnel with experience in public company SEC reporting and GAAP is limited. This weakness does not enable us to maintain adequate controls over our financial accounting and reporting processes regarding the accounting for non-routine and non-systematic transactions. There is a risk that a material misstatement of the financial statements could be caused, or at least not be detected in a timely manner, by this shortage of qualified resources.
 
3. Deficiencies in Segregation of Duties. The limited number of qualified accounting personnel results in an inability to have independent review and approval of financial accounting entries. Furthermore, management and financial accounting personnel have wide-spread access to create and post entries in our financial accounting system. There is a risk that a material misstatement of the financial statements could be caused, or at least not be detected in a timely manner, due to insufficient segregation of duties. Because of its inherent limitation, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management is still determining additional measures to remediate deficiencies related to staffing.
 
Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process certain safeguards to reduce, though not eliminate, this risk. Management is responsible for establishing and maintaining adequate internal control over our financial reporting.
 
 
19

 
 
Changes in Internal Controls
 
There have been no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
 

LEGAL PROCEEDINGS

There is no litigation pending or threatened by or against the Company.
 
Exhibits.
 
Consolidated Financial statements are included in the body of this report.
 
Exhibit Index:
 
Exhibit (31) (i) and (ii)
 
Rule 15d-14(a) Certifications*
     
Exhibit (32)
 
Section 1350 Certification*
     
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

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
 
 
20

 
 
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, thereunto duly authorized.

 
 
WRITERS’ GROUP FILM CORP
 
       
Date: November 19, 2012
By:
/s/ John Diaz
 
   
John Diaz, President and Sole Director
 
       
 
By:
/s/ Eric Mitchell
 
   
Chief Financial Officer and Chief Accounting Officer/Controller
 
 
 
21