Management’s Discussion and Analysis of Financial Condition and Results of Operations

Calculated Development LLC (below "CDL") is OneDoor Studios LLC's (below “1DS”) just formed, wholly owned single purpose entity. As you are considering becoming a profits participant in this new company, we recommend you read the following discussion and analysis about it. 

1DS uses the common practice among producers of motion pictures for studio-level release, to form a single purpose entity ("SPE") company to individually develop each of its motion pictures. By doing this, each project is protected from potential liability from other 1DS projects. This also simplifies audits of CDL by its profit participants.

CDL is 1DS's shiny new SPE for the CALCULATED motion picture franchise. 

Though CDL's development is now directed by 1DS experienced creative, business and finance team, and though CDL now owns what appears a highly valuable asset, which the company believes has significant earnings potential, and though CDL has no debt, because it is new it also has no operating or financial history.

CDL's financial statements are included in this offering, yet they have no positive or negative history to inform investment. 

Further, some of CDL's information contained in this offering includes information from its greenlight, which is CDL's feasibility study. This information provides some of 1DS's team strategy, business plans, use of CDL's invested funds and CALCULATED's projections with forward-looking statements that involve risks and uncertainties. 

We invite you to review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forecasts contained in this section and throughout this Offering.

Overview
After providing finance, business, distribution and/or creative services for 25 features and television episodes, with combined production costs of approximately $470 million, and global rights earnings exceeding $4 billion, this team began operating 1DS as of 7/18/18. 1DS provides creative and business services to production company clients, while also acquiring story assets to develop and produce their own mainstream-audience motion pictures and series for global studios, distributors and streaming networks. 

Each project picked up by 1DS is driven by a global-audience-worthy story, has break-out earnings potential, and its greenlight demonstrates its ability to return profits from all global sources that could total at least twice its production cost: a minimum 2 to 1 earnings-to-cost ratio.
 
This Offering is for 1DS’s premiere motion picture franchise, CALCULATED, that was placed into CDL, its wholly owned, single purpose development entity for full creative, distribution and production finance development. 

Why develop and produce CALCULATED first? It is based on an extraordinarily high reader-rated and critic-reviewed Young Adult action-adventure novel series. It features a young woman hero, its global story takes place primarily in Shanghai and America’s Pacific Northwest. This book series has the potential to become the next big global Young Adult franchise in the tradition of DIVERGENT and HUNGER GAMES. The first book is currently in critic reader review. It premieres to readers February 11, 2021. The next two books release within nine months of one another, so all three books should be released before CALCULATED’S first motion picture premiers.

1DS’s objective is to release projects with the script integrity and consistent audience satisfaction of Pixar, and with the world-class production quality of production companies such as TSG Entertainment, Bad Robot, and Imagine Entertainment. 

In 5 years, 1DS aims to have released six global blockbuster motion pictures and series that enthralls audiences and enriches their investors. 1DS aims to empower itself and each of its project’s individual companies to mutually support and optimize the performance and negotiating power of one another. These projections cannot be guaranteed.

Meeting or exceeding these objectives is the most beneficial surety of 1DS, CDL and its other SPE’s successes.

Based entirely on CDL's lack of operating history, one cannot estimate how much revenue CDL will earn in the future, or if it will have any earnings. 

Considering 1DS’s operating team’s motion picture greenlighting and forecasting experience and its final forecasts relying on major global distributor estimates, their actual licensing and distribution commitments before each project’s production—together these at least render CDL’s forecasts worthy reference points. 

CDL’s deal structure should also be considered in this section, as it substantially sets it apart from other offerings, especially motion picture offerings. Should CDL successfully completing its CALCULATED'S development it will return 110% of each investor’s investment from CALCLATED's production bank financing.  Completing CALCULATED’s development is NOT guaranteed. However, it is far more predictable than relying entirely a project’s marketplace success.

Given the pandemic's radical changes in the global marketplace, ever speedier advances in technology and increases in media consumption around the globe, all of which defy prediction, the best forecasts should not be relied upon. However, since 2015 each of these phenomena have significantly increased the value and predictable positive future of content made for motion picture and streaming studios.

Milestones
1983 Marked the first motion picture project in which a member of CDL’s team developed it to the point of securing its distribution for production funding before the picture was produced.

7/18/18 Eighteen additional motion picture projects later, OneDoor Studios was formed to provide these services for other production companies and chiefly to acquire, develop, produce and globally distribute its own motion picture projects with extraordinarily high audience pleasing and earning potential.

9/4/18 1DS Successfully optioned the motion picture and related media rights of the Calculated book series.

8/15/20 Calculated set its publishing deal with WolfPack Publishing, one of Amazon’s most successful book publishers.

11/23/20 1DS formed Calculated Development LLC to fully develop the first motion picture of its franchise and be the partner of each future franchise project.

12/15/20 Calculated Development LLC is slated to launch on WeFunder. 

Future projected milestones (not guaranteed)

1/18/21 New SEC crowdfunding rules begin allowing CDL to raise its funding cap to $2 million.

2/11/21 CDL’s initial funding round is targeted to be completed.

2/11/21  CALCULATED’s first book premiers on Amazon and bookstores around the world. 

11/11/21 CALCULATED’s second book in the series is released.

8/11/22 CALCULATED’s third book in the series is released.

2/23 CALCULATED development is forecasted  - to be completed and investors receive 110% to 120% of their investment.

4/24 CALCULATED’s motion picture is projected to be released.

10/24 CDL Investors should receive their first earnings report and their proportional 50% share of all CDL global profits.

Historical Results of Operations

11/23/20 CDL was organized, had no historical earned income or expenses as of the date of its founding. CDL is expecting cash inflow projected for February 2023 from its project’s production loan, sufficient to return each of its investor’s 110% to 120% of their investment. It is forecasted to begin its earned income in October 2024 with each investor’s profits statement and share, to continue long-term thereafter.

11/23/20 CDL’s CALCULATED motion picture and media assets value at its time of organization, at book value, rather than estimated sale value were $62,325.

11/23/20 short-term Liabilities at the time of the financial review were $800. 

Liquidity & Capital Resources

11/23/20 The company had no liquidity, no bank account and was fully business housed and directed in every business regard within 1DS’s care and keeping. Its funds were and will be kept on account at WeFunder until such time as there are sufficient funds raised that both exceed the WeFunder minimum requirement and are sufficient to begin CALCULATED’S development. 

Forecasted February 2021: After the conclusion of this Offering, should CDL attain its minimum funding target, it will have its own bank account, receive invested funds into it and operate with its own unique team. CDL plans to use the WeFunder investment proceeds as set forth in this offering’s Form C under "Use of Funds". 

Forecasted February 2023: CALCULATED’s development is projected to be completed, which includes engaging its bank in providing production funds. If this is accomplished, CDL will receive at least $2.3 million in full recovery of its advanced production expenses and a development fee. From this amount, investors will be paid between 110% and 120% of their investment. (Those who invest in the “Early Bird” window of the first $200,000 raised receive an additional 10% interest, totaling 120%). 

When the picture goes into production, CDL’s work is mostly concluded with the exception chiefly of some oversight, record keeping, reporting and distributing investor returns. Its overhead is light, well-below its retained operating capital. No additional investment is needed until CALCULATED’s release, which will bring its first income from the motion picture.

Forecasted April 2024: CALCULATED’s motion picture is released, CDL’s revenue share from exhibitors, streaming services and other sources will be paid directly to distributors, who in turn will largely pay CDL’s global collectors, who will account and then report and remit to CDL.

Forecasted October 2024 CDL Investors should receive their first  proportional share of 50% of all CDL global profits and continue to do so thereafter. CDL’s profits share should be more than sufficient for CDL to continue operating its very low overhead operation. CDL intends to also receive income and profits to share with its investors from future motion pictures from the CALCULATED franchise.

CDL expects to have no future requirement for additional financing. 

Except as otherwise described in this offering’s Form C, CDL has no additional sources of investment capital other than the proceeds from this WeFunder offering. Though CDL’s management are experienced in motion picture development, especially attaching collateral and using bank financing to secure its needed production funding, because of the complexities and uncertainties in establishing every new business, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable CDL to fulfill CALCULATED’s development within the time or budget they have planned. Nor indeed whether or not they will complete it at all. This complexity and uncertainty will be increased if less than the maximum amount of investment offered in this offering is raised. Should CDL fail to raise the total amount needed, it will seek the additional amount needed from a further WeFunder raise, or from investors outside of WeFunder, or by co-developing Calculated with another development company. Although investment capital is available for early-stage companies, there is no guarantee that CDL will receive any investments.

As set forward in this Offering’s Use of Funds, most (over half) of CDL’s invested capital is reserved for attaching CALCULATED’s studio approved director and lead cast. This expenditure comes at the end (typically the final eight weeks) of its projected two-year development cycle. Consequently, if additional funds are needed to be raised, CDL will have most of the two years to raise them.

Runway & Short/Mid Term Expenses

CDL is a clean, new company, seeded with CALCULATED’S powerful asset. Consequently, its cash in hand is $0, as of December 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. CDL’s only product will be its developed CALCULATED motion picture, which is forecast to be complete within 24 months. At that time, it will have a single cash transaction. It is not expected to have income from earned revenue of consequence until the motion picture is released about 14 months after it begins production. Following its release, CDL expects a regular cash flow as its asset earns from new and renewed global licenses.

CDL was newly formed November 20, 2020 (officially in the state of Utah on November 23, 2020), specifically to develop the CALCULATED motion picture franchise. It is wholly owned by 1DS. For this reason, the financials for this new entity show how new it is. CDL has received from 1DS the motion picture, streaming and other media rights for the young adult book series CALCULATED. During 2020, 1DS began CALCULATED'S pre-development, including preparing for its WeFunder raise for its full $2 million development funding. Even a small portion of these funds will immediately commence its scripting, as well as global distributor, bond, bank and other relationship engagements mandatory to set-up this project's bank-provided production funding. This bank-provided funding is what provides investors' more than investment recovery before production, without which they will not receive it. Then comes CALCULATED'S production, distribution and the company's 50/50 net profits sharing with Investors. These are projected activities; they are subject to our best efforts and cannot be guaranteed that they will be fulfilled.

CDL forecasts raising CALCULATED’s full $2 Million development costs through investors on WeFunder. Through most of the two development years an estimate $700,000 will be spent on screenwriters, legal and related expenses. Just prior to CDL’s pre-set production bank loan engagement, CALCULATED’s studio-approved director and cast attachment fees will be released, in amounts representing 10% of these talents’ full fees. These talent-holding-fees should not exceed $1.3 million. 

The company's chief income sources are from CALCULATED's theatrical, streaming and other ancillary income sources.