Replies to post #34026 on Medient Studios Inc. (fka MDNT)

[Summitgains]

Wow! So more than 17 million ! great news!

[OCTraderguy]

Don't blame him for not putting a number on it because that sets an expectation and what if they miss it? We will all be blown away by its success I hope.

[TESLA777]

It makes complete sense to me at this point that MANU is going to use the land and film "YELLOW" as the collateral for the studio complex. That will get him right at about 40 mill in collateral, and also explains why he needed to clean up "YELLOW" as he put it.

By him saying 17 mill, hes basically saying they'll at least break even, and that the value of the film is at least what they put into it IMHO....although we all believe it will do much better....

NOTE 4 – FILM COSTS

The Company has acquired the rights to two completed films: Storage 24 and Yellow . Storage 24 was released in Europe in 2012 in the United States in 2013. The Company is currently reviewing domestic and international release dates for Yellow . A number of other films are currently being developed by the Company.

The following presents the cost basis of each of the films:


December 31,2013

Yellow $17,783,918

CAPITAL LEASE AND GOVERNMENT ASSISTANCE

On August 21, 2013, the Company entered into a lease agreement (“Lease”) with the Effingham County Industrial Development Authority (the “IDA”). Under the Lease, the Company leased approximately 1,560 acres of land located primarily within Effingham County, Georgia. The Lease is effective from August 21, 2013 through July 1, 2033. No interest is payable and no payments are due for the first two years, with the total rent of $10 Million being paid in 18 equal annual installments, commencing February 28, 2016. The Company is obligated to pay additional rent if it does not achieve the specified goals of $90 Million in investment and 1,000 jobs on or before the end of year 5 (five). At the end of the Lease, the Company has the option to purchase the Property for $100. Furthermore, the State of Georgia and the IDA are providing additional cash grants, rebates, and tax incentives for the Studioplex. The Lease has been accounted for as a capital lease and the net present value of the minimum lease payments under the Lease is $3.6 Million.

The Company obtained an independent third party appraisal on the Lease land, which indicated that the land has a fair market value of $22.1 Million. The difference between the net present value of the minimum Lease payments and the fair market value of the land is considered the value of the government assistance under the Lease.

The $18.5 Million of government assistance has been deferred on the accompanying balance sheet until such time as the Company’s obligations under the Lease have been fulfilled. During the course of the Lease, the Company has beneficial ownership of the land and can utilize the land as collateral for financing purposes. The Company incurred approximately $276,831 and $72,872 of site development costs on the land in 2013 and 2012, respectively.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9890932