Rim Semiconductor Company (fka RSMI)

[porscha]

WTM - so far the company has funded 2.25 million dollars for the movie. they say that figure is 100% of their obligation and that was enough to complete the film. the rough draft cut was done a week or so ago and the film is set to premiere in malibu sometime in june.

the gross dollar figures you are seeing talked about have not been plucked from the sky by NVEI, but rather those are the figures the distributors they have been talking to have given them. it's my understanding any distribution deal that is signed will be a percentage based one. john said they have several options. they could sign with a major distributor and have the film played in more theaters, but this would probably cost them a greater percentage. or they could sign with a smaller distribution company, have the film shown in fewer theaters but get a bigger percentage of the gross. bruce brown has been in the motion picture industry for 30+ years so there's no doubt in my mind he knows the in's and out's of that industry.

but regardless, NVEI will receive the first 2.25 million of the gross to re-pay their initial investment, plus a percentage of every dollar the movie grosses. let's also keep in mind that NVEI has one person on the road full time signing sponsership deals. john recently said they have signed at least one and they expect more to come. all of those monies come directly into NVEI to re-pay their initial investment.

as far as the convertable notes are concerned, all warrants and options from a public company are turned into 144 restricted shares after they are exercised. if these notes are structured the same way i do not know, but it wouldn't surprise me to find out they were.

you also need to keep in mind that bruce brown and ray have worked together in the past. even though the movie was announced after the tech was aquired i'm positive it was in the planning stages way before we aquired the tech.

one additional comment on the movie and then hopefully we can get back to talking about the tech. i have read several articles about the up-coming movie in various surfing publications. it seems the surfing world is very excited about this film. there's a link in the links page for one of those articles.