Legion M

[kc-lm]

In reply to your questions ...

The company has stated that Paul took no salary for the first year of operation. I believe I read that Jeff took only a partial (approximately half) salary for the same period. To my understanding, it's only been since the early part of this year that they have been taking full $175k salaries.

Many people have questioned the $$ amount, but I don't understand their concern. As far as I know, these guys are not independently wealthy. They have mortgages to pay, families to support, kids to put through college. They work 60-80 hours a week, and have done so for nearly two years. The salaries they are taking are considerably less than what they were making in their previous company (MobiTV) and are also significantly less than what they would be paid if working somewhere else.

In addition, they live in the San Francisco Bay Area where the cost of living is very high. I live here as well and I think most people would find those salaries to be rather low for the CEO and President of a start-up company in this area. I don't know where you live, but around here, $175k is about the range for a senior manager or director at a large corporation.

And the guys don't get any back-end deals either. They own stock in the company but it has the same financial terms as investors' stock. Consequently, they won't see any rewards from the stock until we all do. So, as an investor, I'm not bothered by their salaries, considering all the circumstances around them.

As for the Colossal ROI, they are in the process of preparing a mid-year financial statement, which should include those figures. The report is expected in the next 6 weeks.

For what it's worth, the company has said that our deal on Colossal wasn't with the producers, it was with the distribution company NEON. We were invested in P&A, which has a totally different set of economics from production. Also, our investment in the movie was relatively small from a $$ perspective.

Until the new financial statement comes out, you can see their previous SEC filings here: Legion M Investor Relations