Rim Semiconductor Company (fka RSMI)

[spokeshave]

Tejas Gator: Re: Does anyone else know of the financial arrangements?

Unfortunately, the movie will not represent much, if anything at all, in the way of revenue for NVEI. Although the company will get the first 2.25 Million from the movie, virtually all of that money will be paid out in the form of convertible promissory notes that come due upon receipt of that money. Add another half million that goes to Cono, and you can see that they will pay out close to 3 million in debt as soon as they get the money. After that, they split whatever net proceeds they get with Top Secret.

So, let's say that the movie grosses 10 million this year (optimistic, IMO) and let's just say that the net proceeds are 50% of gross. That means that NVEI gets the first 2.25 million, and then 50% of the rest, or 1.375 million for a total of 3.625 million. The first 3 million or so goes directly to convertible debt (that by the way, pays a 50% premium to the lender), leaving only $625,000. Now, that is not chump change, and it will save us a little less than one month's worth of dilution, but it is does not help much.