EFTA00810545.pdf

* 7: 7n „io're' l ove, id eferyi.cif BLACK CHALK productions Financial Plan EFTA00810545  2 of 5 Cash Flow Currency - $USD Production Budget $2.SM $2.SM $2.5M $2.5M Equity Investor 53M $3M 33M $3M Domestic Bon Office $2,000,000 $4,000,000 $8,000,000 $1 6,000,000 Rental Rate 42% 44% 45% 48% Theatrical Rentals 5840,000 51,760,000 $3,600,000 $7,680,000 R Theatrical Rentals $840,000 $1,760,000 $3,600,000 $7,680,000 DVD/Blu Ray Revenues $900,000 51,800,000 $3,600,000 $7,200,000 Pay Television (Netflix) $100,000 8800,000 $1,600,000 53,200,000 Digital Distribution (PPV, VOD) $600,000 51,200,000 $2,400,000 54,800,000 Fry - Broadcast / Basic Cable 8200,000 8100,000 5800,000 51,600.000 Foreign Sales S 100,000 8800,000 -I .600,0011 !-;i .•)i)i ii lig) Total Revenues $3,340,000 $6,760,000 $13,600,000 $27,680,000 Distribution Costs & Fees Domestic Distribution Fee 8835,000 SI ,690,000 $3,400,000 56,920,000 Foreign Distribution Fee 31 00,000 $200,000 $400,000 5800,000 Print and Advertising 8500,000 8500.000 5500,000 5500.000 DVD Costs 5270,000 5540,000 $1,080,000 52,160,000 Digital Distribution Costs 840,000 570,000 $130,000 5250,000 Television Distribution Costs 56,000 512,000 $24,000 548,000 Residuals $1 33,600 5270,400 $544,000 81,107,200 Total Distribution Costs & $1,884,600 $3,282,400 $6,078,000 $11,785,200 Fees Total Revenue $3,340,000 $6,760,000 $13,600,000 $27,680,000 Net Re $1,455,400 $3,477,600 $7,522,000 $15,894,800 Investor Capital Repaid $3,000,000 S3,000,000 $3,000,000 $3,000,000 Net Profit, 41,544,600 $477,600 $4,522,000 $12,894,800 Production Company Equity $0 $47,760 $452,200 $1,289,480 Total Investor Return $1,455,400 $3,429,840 $7,069,800 $14,605,320 Total Investor Return 49% 114% 236% 487% kr a.2 14/:7. ire ,./;In EFTA00810546  a .. 3 intsire: 1 0C4 Cash Flow - Receipt Assu mptions Domestic Box Office (DBO) > US thcatrical rcicasc projected 3-6 months following completion. Performance scenarios arc based on the low, average, high and home run domestic box office (DBO) of selected genre of films within spccific budget ranges. Rental Rate > Exhibitor revenue projected 42% - 48% based on DBO performancc. DVD Revenue > DVD sales arc projected at 45%, 45%, 400/0 and 40% rate of DBO during initial 5 year rcicasc which include all packaged media including Blu-ray and revenue share. Pay TV > 200/o of DBO, including Nctffix ad other streaming interact services. Digital Distribution > 30% of DBO — this is primarily cable PPV, VOD, and Electronic sell-through of movies (EST) on the intcmct. Broadcast/Basic Cable > 10% of DBO Other Ancillary Media > Othcr ancillary markets including music, merchandising and licensing, comic books and publishing arc NOT modeled for purposes of this plan, but represent additional salts opportunities. International Sales > This model only tracks the major nation international sales. EFTA00810547  uanpire in Cash Flow -Cost Assumptions Domestic Distribution Fees > 25% for theatrical and all other down market revenue streams International Distribution Fees > 25% of international receipts from sale to major nations Print and Advertising > is calculated as a blended average based on anticipated theatrical performance, and screen count, with 55°460% of the anticipated box office performance spent on M. The model contemplates sourcing financing though a distribution partner. DVD Costs > 30% of DVD sales Digital Distribution Costs > 5% of digital sales and $10,000 for formatting Television Distribution Costs > 3% of Pay and Frcc television sales Residuals > Residuals arc calculated on guild guidelines on gross receipts received by the Company Production Budget > The total budget is $3M and includes all costs to final production for submission to film festivals and distribution pre- sales formatting. Black Chalk Productions has I0% equity stake. EFTA00810548 EFTA00810549