GENERAL

First National Entertainment Corp. (the "Corporation") was founded to pursue the acquisition, distribution and marketing of high quality entertainment properties targeted at the family market in all forms of media. The Corporation was incorporated on January 10, 1985, under the name of Power Capital Inc., a Colorado corporation. In November of 1989, Power Capital became a public company. On October 26, 1990 Power Capital acquired 100% of the stock of 1st National Film Corp., a California corporation (1st National Film - California) in a tax-free, stock-for-stock exchange. For financial reporting purposes this acquisition was considered a reverse acquisition, in...