jolie's garden - project overviewjoliesgarden.com/investor.pdf · confidential+! golden bloom...

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Golden Bloom Ltd 6th Floor, 48 Gracechurch Street, London, EC3V 0EJ, UK - [email protected]

Landline: +44 (0)845 838 2576 Cell +44 7966 213111

Jolie’s Garden is a powerful psychological thriller exploring themes of permission and perception, presented in multiple formats to a wide audience. Production incorporates high quality 4K video for cinemas, full 360 video for VR headsets, and live immersive theatre for select audiences. With multi-‐award winning director and futurist Maxim Jago at the helm, Jolie’s Garden breaks new ground in storytelling and narrative experiences. BAFTA winning producer Ian Sharples leads an extraordinary team of creative and technical storytellers, working with a world class cast. Jolie (Andrea Sweeney) is a beautiful blind girl who has always lived in an underground garden. Jolie doesn’t know the garden is artificial – the flowers are made of cloth, the grass is just plastic -‐ or that she’s blind. In fact, no-‐one has ever told her people can see, or that she is a prisoner. Jolie’s world is turned upside down when a young man, Pierce (Matt Torrance), appears in the garden, invited by her Father (Aiden Brady). Excited to have a new companion, Jolie is desperate to know more of the world outside and is oblivious to her father’s intention to make her Pierce’s lover. What no-‐one could have known though, is that Pierce is a violent madman, and Jolie is in grave danger. Unable to take the pills that control his condition, Pierce’s kind nature is overwhelmed by a violent other self. He sets out to escape, and to take Jolie with him before madness consumes him.

“Help me Jolie, I’m afraid of me” – Pierce loses control

Based on an original stage play by playwright and novelist Malcolm Hobbins, Jolie’s Garden is a beautiful secret world where people speak of and do terrible things. Total Budget: £250,000 (pre-‐qualified for UK EIS & SEIS reliefs). Seeking £150,000 from investors. Contact: Maxim Jago +44 845 838 2576 | UK Mobile +44 7966 213111 | [email protected]

In association with:

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Golden Bloom Ltd, 6th Floor, 48 Gracechurch Street, London, EC3V 0EJ, UK -

[email protected] - Landline: +44 (0)845 838 2576 Cell +44 7966 213111 of 19

Production will be in three phases, with all story elements taking place in the garden

Cinematic Production: Filming for a theatrical release will take place over three weeks, capturing stunning visuals in high resolution 4K (four times the resolution of regular cinema films). Using two cameras set with differing focal lengths for efficiency, the story can be captured in this relatively short time thanks to the convenient local production – everything takes place in a single controlled studio environment. The fixed overhead lighting rig, that is part of the story, covers the entire garden and will be controlled by remote console.

The artifice of the garden makes continuity much easier, and allows for extraordinary compositions that are almost exclusively real (no need for post-‐production work) with beautiful colour and light.

360 Media for VR: The fourth week of production is dedicated to 360 capture for VR headsets. This new technology captures video in every direction, so owners with a virtual reality headset can view the garden in every direction freely. There’s enormous demand for 360 media of this kind, as consumer VR headsets are becoming available and affordable. The buzz around this technology extends to film festivals, online distribution, and major studios.

Live Audiences: The fifth week of production is for live audiences only. Small audiences will be invited to come into the garden and witness the story unfolding in person. All audience members will sign a confidentiality agreement before stepping into the garden, and no photos will be allowed. They’ll experience the story before anyone else in the world.

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Aiden Brady is Kline Andrea Sweeney is Jolie Matt Torrance is Pierce

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360 AND VIRTUAL REALITY FILM PRODUCTION

Jolie’s Garden is planned for production in three distinct phases:

1. 2D -‐ in high quality 16bit 4K RAW, for cinemas 2. 360 -‐ capturing an image in every direction for viewers with virtual reality headsets 3. Live theatre -‐ inviting small audiences into the garden to experience the story as immersive theatre

In 2016, both the well-‐publicised Oculus Rift headset, and the new Sony Playstation VR headset are available for purchase, along with a long list of competitors. By the end of 2016, it’s estimated that there will be 43 million VR headset owners. This jumps to 90 million in 2017, and 171 million in 2018.* With all of these VR headset users, there’s a huge shortage of video content. Jolie’s Garden is an ideal entire feature length story for VR headsets. *http://www.statista.com/statistics/426469/active-‐virtual-‐reality-‐users-‐worldwide/

360 and VR -‐ Understanding the difference 360 video captures images in every direction, allowing the end user to look around while the story unfolds. A VR headset, or equivalent technology is required to view 360 video. Viewers cannot move around in 3-‐Dimensional space to change their point of view. True Virtual Reality is a complete 3-‐Dimensional environment the viewer can navigate. In addition to being able to change viewing angle, viewers can move around the space and view events from different locations. For example, while dialogue is performed at one end of a room, the viewer could choose to ignore the action and explore the other end of the room -‐ or even go into a different room. Virtual reality environments created using computer generated graphics are easier to produce than photo-‐realistic virtual environments. For this reason, early adopters of virtual reality headsets are expected to be gamers, who can connect a virtual reality headset to an existing game console or computer, and explore computer generated environments.

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Essentially, creating a photo-‐realistic virtual environment involves capturing multiple images of a real environment and applying visual elements to a virtual wire-‐frame to create the experience of a real environment. The difference in image resolution and detail can be significant, making it difficult for computers to correctly display the environment for the viewer, and often resulting in a simplified version of the environment, which is more noticeable in a photo-‐realistic image than in a computer generated, animated one. Compare a Disney animation with a photograph; if the hairs on a character are simplified in an animation it’s usually unnoticeable, but blocky looking hair in a video of a real actor is highly noticeable. Capturing 360 video for Jolie’s Garden While we’re in discussion with Microsoft to make use of their novel HoloLens capture technology to record a true 3D model of events as they unfold -‐ ideal for true VR video -‐ our plan is to film using a new camera system developed by Kodak for 360 video capture. Our VR capture lead is a BBC, consultant for the BBC, researching and testing 360 and VR capture systems. We are following his advice on filming methods, with our post-‐production workflow guided by Ridley Scott’s DIT advisor. The new Kodak 360 capture camera produces a high quality 4K final image, which is higher quality than the current generation of VR headsets. When higher quality headsets become available over the next 3 years, viewers will benefit from viewing Jolie’s Garden again, having a richer experience thanks to new hardware. Crossover viewing We believe viewers of the 2D version of Jolie’s Garden will be curious to see the 360 version. Equally, viewers of the 360 version will be curious to see the beautiful cinematography of the 2D version. We estimate around 10% of viewers of one form will choose to see the other.

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THE TEAM

Director of Photography Razaka Firmager

(Villains)

Composer Patrick Cannell (The American)

Sound Editor Alberto Moreno

(7 Emmy awards for sound design)

Line Producer Ian Sharples (BAFTA winner)

Going Postal The Color of Magic Leon the Pig Farmer

Director Maxim Jago

Best Director Award (Monaco) Writer’s Passage screenwriting Award (UK)

Post-‐Production Supervisor Jeroen Hendriks

Assistant Producer Natasha Marburger

Social Media Manager Simona Sakalauskaite

Behind the scenes documentary director Daniel Gregory

VR and 360 filming consultant Ian Wagdin

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PRODUCTION SCHEDULE

Jolie’s Garden is a continuous performance, performed after extensive rehearsals to achieve nuanced emotional authenticity in an unbroken story. Production will be quick and easy, with high aesthetic values achievable with a modest budget, thanks to the modest logistical requirements. Broadly, the entire pre-‐production and production schedule will take place in two months:

Month 1 Rehearsals and set design: The performance will be developed as a theatrical performance but with nuanced, filmic presentation. By Day 1 of principle photography, the cast will be ready to perform the entire story without pausing. Key elements of the set will be manufactured and prepared for installation. This allows for a fast, one week set-‐up on location.

Month 2

Production: The first week is devoted to the installation of the garden and the lighting rig. It’s crucial that these two are ready for Day one of principle photography, ideally with no adjustment required to the lighting or location to allow continuous filming. Weeks Two, Three, and Four, are for film production, and Week Five is exclusively for live audience performances. Post-‐production will begin immediately on Day One of principle photography and run concurrently with production. This use of ‘dailies’ allows us to adapt production and pick-‐up missing content as necessary. Pre-‐production Week Installation of the garden set and lighting Week 1 Film production Week 2 Film production Week 3 Film production Week 4 360 Video VR Film Production Week 5 Immersive Theatre live performances Production is Monday to Friday, with each Saturday held as contingency time if required. The benefit of performing for live audiences in the final week of production is that any ‘pick-‐up shots’ (shots missed during production) can be recorded between live audience performances at any time for the entire week.

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DISTRIBUTION

“I wanted to express my personal interest in seeing the immersive VR version of your Jolie’s Garden project as it’s completed, especially if you pursue some creative interactivity and agency in the narrative to fully explore the value and capabilities of the Virtual Reality medium. Your project and the team you have attached to it are intriguing to me and I look forward to seeing it’s progress.“ Ted Schilowitz | 20th Century Fox

Jolie’s Garden will be released internationally in cinemas, for key regions including North America, The United Kingdom, Germany, and China. After the key territories, we’ll release in the approximately forty smaller territories, with a Blu-‐Ray and online release. Distribution via iTunes, Amazon Prime, and Netflix will follow. We have access to independent distributors for smaller scale distribution but a proportion of the budget is already allocated to marketing and distribution costs, which gives us negotiating room for larger-‐scale distribution arrangements. 20th Century Fox have expressed an interest in the 360 Media version in particular. We intend to release Theatrically, on-‐line on iTunes, on Blu-‐ray, DVD, Satellite, Cable, Terrestrial Broadcast Television, Amazon Prime, Hulu, and Netflicks, plus we will be releasing the separate 360 Video version for Virtual Reality headsets via a number of channels.

Overview of distribution outlets and forecast revenues Jolie’s Garden represents a rare combination of high production values, a powerful engaging story, vivid imagery and a classic original film score. Investing in this project is actually investment in two separate but parallel versions: The 4K and 360 Video versions will be based on the same script, with the same cast, location, original music, and crew, and filmed in separate stages. This means the viewing experience will be different, not just because the technology is novel but also because the performance you’ll see as an audience member will be separate – different camera capture on different dates. Before we go any further, let’s look at a quote from the official British Film Institute Statistical Yearbook, published in August 2016.

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There is enormous demand for content, and the distribution channels available have expanded in ways that Studios argue water down demand. In reality, they prove that audiences want films available everywhere, on every device, all the time, at a reasonable price. The appetite for independent film is greater than ever, and for the first time in history it’s possible for intellectual property owners to make their content available directly to audiences in high quality and at a reasonable price. As CIO for FilmDoo.com, Jago has seen an increase of traffic to 250,000 unique monthly visitors who are searching for high quality independent film content. Buyers attending film festivals often watch only the first few minutes of a film. They’re looking to see that the cinematography is beautiful, listening for a nuanced soundtrack with high quality music, and observing audience reactions: If people are mesmerised by the film, it’s worth buying. We believe a segment of audiences for either version will want to see both. Our exceptional Director of Photography, Razaka Firmager, will produce a very beautiful 2D 4K film, with the camera telling the story in a unique way. The 360 Video experience allows audiences to feel present, and view everything around the camera as the story unfolds. 360 Video Distribution As the standards for 360 Video are settling down to Equi-‐rectangular 4K, we are realising the logistics associated with distribution are already in place. In fact, it’s a 2D distribution media with some additional metadata and more advanced audio. This is straightforward – the new developments will all be in the players – that is, the headsets and the software that drives them. 360 Video Potential outlets Our biggest interest is from 20th Century Fox, who are waiting to see a first cut of both our 4K 2D and 360 Video versions. Fox are particularly interested in our 360 version as they are heavily invested in acquisition and distribution for this format. While fox have been hard at work developing their own 360 Capture technology, they’re happy to receive content from any source provided it’s of a high standard. While cinema giants are experimenting with shared experience VR headset cinemas, where audiences wear VR headsets and sit together in sometimes-‐augmented seating, most experts agree the future of VR and 360 Video cinema is in home experiences. For this reason, the cultural ‘normalisation’ of VR headsets is an important step in the take-‐up of this new medium. We anticipate new distribution options online via all major distribution channels, including iTunes, Amazon Video On Demand, Netflix, Hulu, and pay-‐per-‐view services provided by Vimeo and YouTube, as well as traditional theatrical studios.

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Forecast 360 Video VR feature film revenues With this new medium, though it’s hotly demanded, it’s impossible to forecast revenues – the figures are being formed NOW. Nonetheless, we anticipate high take-‐up in demographics traditionally associated with media and gaming technology, and among theatre and the arts lovers. Forecast 4K feature film revenues It can be difficult to estimate international sales for an independent film. Still, based on other film estimates, we can have reasonable confidence that a well shot, well mixed, well performed psychological thriller of this kind will tend to perform well in overseas markets. Film investment is naturally high risk, with very high potential returns. For example, the independent film Open Water, with a budget of around £100,000, took £41million at the box office. While it’s impossible to plan film success of this kind, the next page shows a reasonable set of estimated revenues, divided by territory, for an independent film with this budget scale that doesn’t win any awards – an average film. Figures are provided by reputable film information site filmspecific.com without specifying genre.

ESTIMATED REVENUES FOR JOLIE’S GARDEN (£,000s) TERRITORY Low High Australia 4 25 Brazil 4 25 China 4 25 Germany 8 25 Greece 4 8 France 8 25 Hong Kong 4 12 Hungary 4 12 India 4 8 Indonesia 4 8 Israel 4 12 Italy 4 16 Japan 8 25 Latin America 4 12 Malaysia 4 8 Middle East 4 12

Netherlands/Benelux 4 16 Philippines 4 8 Poland 4 16 Portugal 4 12 Russia/CIS 8 41 Scandinavia 8 25 Singapore 4 8 South Africa 4 12 South Korea 8 25 Spain 4 16 Taiwan 4 16 Turkey 4 16 UK 8 41 US 8 41 Totals £158,000/ £553,000

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Bankable cast One of the ways to increase anticipated revenues is to include cast members with international appeal and recognition. With known cast members, sales agents and distributors can reasonably estimate revenues based on past performance. Our current plan is to produce Jolie’s Garden for a low investment, without the production complications and added budget requirements associated with known cast. We are open to including known cast. If we do, the budget will increase accordingly, with the associated higher estimated revenues, and proportionate watering down of investor shares. We are exploring potential cast members and if we decide to follow this path existing investors will be given first opportunity to increase their project investment. We anticipate increasing the total budget to £500,000 if we invite known cast to the project. Blu-‐ray and DVD sales If you believe the media, all physical sales of films are resigned to history, but this couldn’t be further from the truth. Here are the top five DVD sales in the United States for just one week up to July 31st 2016, according to the-‐numbers.com: Title Units this Week Spending this Week Batman v Superman: Dawn of Justice 232,871 $4,182,363 The Boss 130,422 $2,215,870 Criminal 87,231 $1,306,720 Barbershop: The Next Cut 77,390 $1,197,997 Miracles from Heaven 72,034 $1,294,451 Note, again, that these figures represent DVD sales in North America for one week and don’t reflect revenues from other outlets, including theatrical. Some of these title are major ‘tent-‐pole’ productions, but some are less well known and still receiving major sales by physical media. In the same week, here are the top five Blu-‐ray sales in the United States: Title Units this Week Spending this Week Batman The Killing Joke 253,287 $4,303,346 Batman v Superman: Dawn of Justice 149,599 $3,728,005 The Bourne Classified Collection 63,400 $1,691,519 The Boss 38,145 $761,375 Zootopia 35,432 $868,800 For many independent films, good festival performance leads to a larger theatrical release, which leads to broader public awareness, which leads to stronger physical media and online sales. If Twentieth Century Fox pick up Jolie’s Garden for distribution, with the associated major P&A budget, we anticipate significant international sales. Even without that additional benefit, we are confident a film with such beautiful visuals, strong performances and soundtrack will return investors contributions with healthy profit.

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Terrestrial, Cable, and Satellite TV When selling films in individual territories, rights usually incorporate all media, including terrestrial, cable, and satellite TV. However, it’s not uncommon to negotiate separate deals for the most significant territories, including North America and the UK. In the UK, terrestrial TV revenues for UK films alone were £62million in 2014. That figure excludes films made outside the UK, and pay per view or multichannel subscription services. Online distribution -‐ Netflix, Hulu, Amazon Video, and more The ubiquitous audience access to online distribution platforms makes services like Netflix, Hulu, or Amazon video attractive. The relatively straightforward technical logistics and transparent metrics make it easier to track sales and profits, and the one-‐step delivery means setting up film content for online consumers one of the simplest options available. The limiting factor with all online services of this kind is in the marketing: These services rarely provide more than a token marketing push, with homepage links for a tiny number of the most successful titles. These services demonstrate perhaps more than any other that distribution in the modern age is truly marketing. It’s for this reason that film distribution follows a traditional pattern:

Theatrical => Airlines => DVD/Blu-‐ray => Pay Per View => Pay TV => Free TV

Note that Theatrical comes first – and this is for two reasons: A successful film can recoup significantly at the box office, and box office means marketing. With a sufficient number of screenings, media coverage is guaranteed, and this leads to much higher follow-‐on revenues. iTunes iTunes deserves a special mention as a distribution platform, partly because of the 800 million+ worldwide users, and partly because of the high level of control given to intellectual property holders. For under £1,000, we can add our film to iTunes. Apple takes 30% of revenues and the rest is paid to the intellectual property holder. As mentioned elsewhere in this document, this means we need a tiny percentage of users to rent Jolie’s Garden for full recoupment of our budget.

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Revenue Waterfall As with all film distribution, Jolie’s Garden has a revenue stream that affords investors first net receipts up to the initial investment. If investors benefit from UK SEIS reliefs, it is a requirement that investment remains with the company for a minimum of 3 years. This is the normal stream for distribution:

Theatre/platform (30% to 50% of gross revenues) ê

Distributor (10% to 20% plus pre-‐agreed P&A costs) ê

Core Investors receive 100% original investment ê

Core Investors receive 30% of further profits ê

Remaining profits shared between the team, stakeholders, and company

SUMMARY Jolie’s Garden represents a unique combination of thrilling action and dialogue, huge potential for strong performances, and easily achievable production methods. It’s rare for a film to provide so much potential at such a low cost and this is a testament to the extraordinary writing of Malcolm Hobbins, the original playwright. Final estimated Duration: 1 hour, 40 minutes Budget: £250,000

INVESTOR INFORMATION Jolie’s Garden is a British film being made by the production company Golden Bloom Ltd. The company is seeking £150,000 equity investment to complete a £250,000 total budget. Jolie's Garden will utilise two forms of tax relief:

• The UK Film Tax Credit • UK SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme)

CROWD FUNDING & THEATRE TICKETS

In addition to the film budget, the project is receiving significant support from partners, including Adobe, HP, and Nvidia. Ticket sales for the immersive theatre experience will also raise revenues for production.

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These two additional sources bring three major benefits to the production:

• Increased exposure: Everyone who commits to a Kickstarter perk is added to a newsletter, and is encouraged to share and announce news about the project. This raises the profile of the production.

• Investment without return: Kickstarter perks are donations, not investment based on return, maintaining profits for investors, while also raising the budget for the production. Ticket sales bring additional costs associated with performing the story as theatre. However, these costs are much lower than shooting film, because none of the additional equipment and crew are required.

• News Worthy: This production is unique in presenting the story in three ways; 2D cinematic film, 360 Virtual Reality, and live immersive theatre. This makes the project newsworthy, raising the profile of the production, which helps with distribution negotiations and audience awareness.

SEIS

The SEIS (Seed Enterprise Investment Scheme) allows qualifying investors to reduce their tax liability by a percentage of their investment. Investors can recover 50% of their investment directly from their tax liability. Investors must have enough tax liability to benefit from this scheme. This reduces the total film investment to a net cost of £75,000. If the project should fail to recoup the original investment, SEIS investors qualify for a further reduction in taxable income by an amount equal to the initial investment after the 50% SEIS reduction. For example, an investor investing £100,000 would recoup £50,000 thanks to the SEIS scheme, then if the production failed to achieve revenues, a further £20,000 (based on the UK ‘higher’ personal tax rate of 40%) can be claimed. This would make the net exposure £30,000 for a £100,000 investment. It’s a requirement of the SEIS scheme that investment remains in the company for a minimum of 3 years, which is the normal anticipated return timescale for feature films.

INVESTMENT IN GOLDEN BLOOM LTD SEIS SHARES Any single investor can invest any amount in an SEIS qualifying production, but the maximum amount permitted to qualify for SEIS tax reductions is £100,000 from a single investor. If an investor invests £50,000 (which reduces to a £25,000 effective cost under the SEIS scheme), they will receive the return of their £50,000 investment from net profits, followed by 10% of further revenues (one third of the 30% SEIS investor profit pool).

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RETURN ON INVESTMENT – COMPARABLE FILMS

Room (2015) Gross Box Office £21.9m

Pan’s Labyrinth (2006) Gross Box Office £58.7m

The Disappearance of Alice Creed (2010) Gross Box Office £1.1m

Ex Machina (2015) Gross Box Office £26.3m

Buried (2010) Gross Box Office £14.6m

Moon (2009) Gross Box Office £7.3m

These figures exclude Blu-‐Ray/DVD, and online TVOD and SVOD revenue.

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ABOUT OUR INDUSTRY PARTNERS We are honoured to have a long list of highly supportive industry partners:

Adobe Adobe are a huge presence in the creative media world and we're thrilled to have them with us on this exciting journey. They are providing software and consultancy for the film. Post-‐production will be performed in Premiere Pro, with special effects work in After Effects, visuals created in Photoshop, and audio post work in Audition. HP set the standard for computing in the broadcast and film world, with their systems used internationally by major creative agencies.are providing crucial hardware for the production. Their Z840 workstation will be the backbone of our post-‐production and their Zbook laptop used on location will provide desktop power for review and pre-‐vis special effects. Nvidia are a huge presence in the post-‐production world, and more recently in VR. Look in most professional system for post-‐production and you'll find an Nvidia GPU. They are providing powerful GPU hardware acceleration and consultancy in the development of our VR experience.

Microsoft have fast proven themselves to be thoroughly dedicated to the creative world, especially by producing a range of hardware devices aimed directly at creative. The new Surface Book and Surface Pro laptops and advanced HoloLens technology make them ideal partners for Jolie’s Garden.

Atomos are the hugely popular manufacturer of calibrated screens with integrated recorders. Well-‐known for their HD recording systems, they are now producing HDR (High Dynamic Range) screens with integrated recorders that allow calibration by eye -‐ the screens have enough dynamic range to literally look at the scene and match it on screen. Given the dramatic lighting planned for Jolie's Garden, we're excited they are providing equipment for our production.

Genarts are a well known visual effects company, providing plug-‐in effects used constantly by post-‐production facilities around the

world. We're huge fans and thrilled to be supported by them in this production. They are providing visual effects to enhance the film's aesthetic of magical realism.

Mettle create easily the most popular plug-‐in visual effects and calibration plug-‐ins for 360 video in Premiere Pro and After Effects. They are at the absolute cutting edge and have quickly become the favourite toolset providers in this nascent industry. They are providing software and consultancy to ensure our 360 video for VR headsets looks perfect.

AJA are highly regarded manufacturers of industry standard hardware for monitoring and video transmission. As we move into post-‐production, we'll need a calibrated monitor to review our visuals, and hardware provided by AJA will make that possible.

ADRenaline are a cutting edge Automatic Dialogue Replacement service, with an advanced technology that allows incredibly fast ADR capture and alignment. They are providing support for our post-‐production audio to ensure we have perfect quality dialogue throughout.

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RETURN ON INVESTMENT

Based on the effective total investment of £75,000, which accounts for one half of the budget, investors receive 100% of net profits up to an amount equal to their original investment. 30% of further net profits are attributed to investors, so an investor investing £75,000 would receive a further 15% of net profits. Capital gains tax on profits is not charged by the UK government for investments under the SEIS scheme. While it’s impossible to forecast box-‐office success, we have established a few expectations based on similar titles, with a little optimism based on the popularity of the Thriller genre, and our anticipation of audience and film festival success. For comparison, an investor contributing £75,000 (which is a net cost of £37,500 with the SEIS allowance) might recoup the following amounts for combined theatrical, Blu-‐ray, iTunes and TVOD/Online distribution: High Revenue Estimated returns for £75,000 investor £571,250 Medium Revenue Estimated returns for £75,000 investor £271,250 Low Revenue Estimated returns for £75,000 investor £121,250 There area number of available distribution channels for Jolie’s Garden. Feature film box office figures rarely include online distribution or Blu-‐Ray, both of which can bring a significant part of a film’s revenue. Jolie’s Garden is an ideal discovery on iTunes, for example, which has over 800 million users. We estimate we would need around 0.008% (eight thousandths of one percent) of iTunes users to rent Jolie’s Garden to recoup our investor’s contribution, with no other distribution required. As CIO for online distributor FilmDoo.com, our director Maxim Jago has links to a number of traditional and OTT distributors. We plan an international theatrical release, and our 4K production resolution is high enough to screen in an IMAX cinema. Our 360 video production is a completely new, additional distribution medium, expanding our potential reach and answer a loud call for new content from headset owners. Add to this the significant number of international territories with demand for theatrical, DVD/Blu-‐Ray, TV, and online media, and we are confident Jolie’s Garden is in the best possible position to recoup investment and significantly increase returns. There’s always the possibility that a film will fail to recoup its original investment, and this can happen for lots of reasons beyond the control of the production company. Thankfully, Jolie’s Garden includes no references to any real world public figures or historical events, so the chances of any legal limits to distribution are very low. Still, it’s important to be aware of potential risks and the ways those risks are mitigated.

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MINIMISING RISK The SEIS scheme minimises potential loss for investors able to make use of its attractive tax benefits. Based on a qualifying investor committing £75,000, the SEIS scheme provides a £37,500 reduction in tax liability, reducing net exposure to £37,500. Should the project fail completely, the investor can reduce their qualifying taxable income by the remaining £37,500. For higher rate tax payers on the UK’s 40% tax rate, this results in a reduction of £15,000. This sets the net exposure for a £75,000 investment at £22,500. Most investors weigh risks against potential returns and the qualifying SEIS investment has a reduced risk profile as a result of the tax relief available. Here’s the total investments and potential loss as a calculation that breaks down total exposure. This charge presumes a complete project loss, such as a legal block to distribution leading to no revenues at all.

A | Original Investment £75,000 B | SEIS tax relief @ 50% on initial investment £37,500 | Investment after SEIS relief £37,500 | Potential Loss after SEIS relief £37,500 C | Further loss tax relief for (based on 40%) £15,000 D | Total relief received (B + C) £52,500 | Net exposure (A – D) £22,500

Example of £75,000 Investment Exposure (1) EIS Relief £37,500 [ 50% ] (2) Further loss tax relief £15,000 [20%] (3) Net liability after reductions in taxable income £22,500 [30%]

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INVESTMENT OPPORTUNITY FOR INVESTORS WITHOUT UK TAX Investors without UK tax liability are of course free to invest without but do not benefit from UK tax relief. The share of profits for such investors is exactly the same -‐ a return equal to 100% their investment, followed by a proportionate share of 30% of further profits. For example, a commitment of £50,000 ($75,000), leads to £50,000 profits from net revenues, followed by 10% of profits. So if the film makes £500,000 net profit (after distributor fees etc etc etc), that investor would get £50,000 back, plus £35,000 ($52,500) profit sharing. Initial revenues are attributed to investors proportionally, up to their original investment. For example, an investor committing £75,000 receives 50% of net revenues the original £75,000 has been achieved, then a further 15% of profits.

CONCLUSION

The Film Tax Credit and the Seed Enterprise Investment Scheme provide an extraordinary opportunity to invest under favourable terms in traditionally high risk projects. The tax relief on initial investment and film tax credit rebate makes this an excellent time to consider film investments. Wealth warning It’s impossible to know the scale of return for a feature film project. The Tax Credit and SEIS funding schemes maximise the returns and minimise the risk but film and game projects, like any investment, include the risk of no return. The present Government fully supports investment into the SEIS and EIS Schemes, but this may change and the tax incentives may decrease, increase or be withdrawn. You should seek your own financial guidance before investing.

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