InvestorsHub Logo
Followers 301
Posts 22560
Boards Moderated 0
Alias Born 02/24/2006

Re: no bucks post# 65004

Monday, 12/26/2016 2:39:19 PM

Monday, December 26, 2016 2:39:19 PM

Post# of 68089
There is nothing to support your assumption that no money has been made, and the contract was summarized in the last 10Q:

NOTE 4- INVESTMENT IN MOVIE




In October, 2014, the Company entered into a film finance agreement under which a lender loaned the Company $505,000 for co-production of the film “Daughter of God”. The proceeds from the promissory note (see Note 6) were invested in the film "Daughter Of God” which is included as a cost investment within other assets in the accompanying balance sheet. For this investment, our financiers are to receive their money back plus 20% interest prior to any profits, if any, being distributed. We will receive 6.65% of the profits thereafter from the film and the funding source, operating as Remark Pictures, will receive 6.65% of the profits.


So why would KBM, and Vis Vires file the suits that were recently resolved if your assertions that there's no blood in the turnip were true?

Hollywood accounting can take several forms. In one form, a subsidiary is formed to perform a given activity and the parent entity will extract money out of the subsidiary not in terms of profits but in the form of charges for certain "services"[clarification needed].[3] The specific schemes can range from the simple and obvious to the extremely complex.

Three main factors in Hollywood accounting reduce the reported profit of a movie, and all have to do with the calculation of overhead:
Production overhead: Studios, on average, calculate production overhead by using a figure around 15% of total production costs.
Distribution overhead: Film distributors typically keep 30% of what they receive from movie theaters ("gross rentals").
Marketing overhead: To determine this number, studios usually choose about 10% of all advertising costs.

All of the above means of calculating overhead are highly controversial, even within the accounting profession. Namely, these percentages are assigned without much regard to how, in reality, these estimates relate to actual overhead costs. In short, this method does not, by any rational standard, attempt to adequately trace overhead costs.

Because of this, net points[clarification needed] which are a percentage of the net income (i.e. gross income minus expenses), as opposed to a percentage of the gross income are sometimes referred to as "monkey points". The term is attributed to Eddie Murphy, who is said to have also stated that only a fool would accept net points in their contract.[4][5] Actress Lynda Carter on The Late Show with Joan Rivers commented "Don't ever settle for net profits. It's called 'creative accounting'."[6]

Many insist on "gross points" (a percentage of some definition of gross revenue) rather than net profit participation. This practice reduces the likelihood of a project showing a profit, as a production company will claim a portion of the reported box-office revenue was diverted directly to gross point participants.


https://en.wikipedia.org/wiki/Hollywood_accounting
PS all four movies continue to be distributed to this day, and will continue to for decades smile https://en.wikipedia.org/wiki/Film_distributor

So this unfounded rumor of The company only receiving net profits holds no water but please show us a link to the contract, and internal accounting to support your assertions... you do know that MHYS profited 37k from Exposed before it was ever release, Yes?

Sail Bay

Come on in... The Waters Fine! :)

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.