Isle Child - The Movie

Hi Alan! Thomas here. Great question! 1. Our contract doesn't carve out derivative properties from the company ownership. If we made a sequel or TV show, then we'd have to license it from the WeFunder LLC. So any revenue would be first funneled to investors until 125% ROI, and then filmmakers and whoever else owns equity. 2. Yes, if we do increase the gross budget amount that investors are contributing to then shares would get diluted. However, that’s something that we’re talking with outside investors and companies right now to hopefully mitigate that from happening. Our total budget is 700-900K, so when we bring on outside investors (reg D raise 1 month after closing WeFunder), we’d most likely be just selling our own shares on the same WeFunder terms to get to our budget number. Hope that addresses your concerns; happy to answer anything else! -T

Hey Mehul, apologies for the slight delay — traveling and chaos! Yes, the residual stream is 30% of Net Profits, not gross revenues. After release, the company will have ongoing expenses that will be subtracted from the gross, but these costs will be VERY minimal. For example, our yearly LLC fee for the state of Delaware is $300/year, and any foreign subtitle translations can cost around $350. Things like festival fees and anything that can be pre-factored into the budget itself will be done so without pulling expenses from the residual stream. Some sleazy founders will make up things like an "editing salary" to pay themselves outside from their budget, but unlike them, rest assured in good faith that our ongoing expenses will be extremely minimal as outlined above. For context, our EP, Jim C, has just gone through this on wefunder with his film, The Beta Test, and have not receipted much expenses beyond negligible costs like the aforementioned LLC and translation fees — even years after launching his wefunder in 2019 and returning ROI to investors in less than 2 years. Happy to schedule a phone or Zoom call via this link if you have more q's! calendly.com/islechild/25

Hey Mehul! Great question — yes, you're correct — since we're selling 30% of our company (the film's LLC) for $350K, that means that our valuation is ~$1.1 million. So a little less than a ~$12K investment takes 1% of the company. And similarly, a ~$1200 investment takes 0.1%. That is the 30% net equity mentioned in the terms. So, for example, any money the film makes first gets distributed to WeFunder investors until they make back 125% of their initial investment (ie, $12K investment gets $15K). Once that is returned, further funds will be distributed to investors based on their equity size (ie, $12K investment makes $15K ROI, THEN 1% of all future revenue the film makes). Investors will indefinitely collect this equity revenue from the film and from the company LLC. We're currently getting our official agreement documents ready as our filing state, Delaware, has been extremely backed up with LLC formations lately. But we've gotten our papers back a few weeks ago and rushing to get our finances checked and Form C filed, after which, we can send out our official agreement sheet. So we'll have that ready for investors soon! -T

Hi Greg! We close out the campaign at exactly $350K. Any dollar over that amount will be returned as we're only selling the allotted shares. Let me know if you have other questions anytime! -T

Hi Julie, we share your excitement! Our CPA accountant is currently reviewing our operating agreement paperwork (standard procedure after a company hits the $50k mark on WeFunder) and will hopefully be relinked at the bottom of our campaign page soon. 

 But to explain it in simpler terms here, our return on investment (with current Early Bird perks) is 130% plus equity, for example, for $400 you’ll get a return of $520, and once that is met, you’ll receive checks for your percentage of the company in perpetuity. Our 10K investors own 1% of the company, so they’ll make $13,000 and then receive 1% of the revenue of the company after that. With our “Privileged Return” waterfall agreement, our team won’t see a dollar until all of our WeFunder investors first receive their FULL 130% return on initial investment. 

 Hope that answers your question, Julie! Please follow up if you have any others!

Hi Greg, absolutely, I will be sending out an update for all the investors shortly!

Hi Greg! We're very close to picture lock, and are steadily moving to finishing as we wait to hear back from TIFF and top festivals for the premiere. Please feel free to email me directly at thomaspercykim@gmail.com for more detailed updates on our progress!

Hi Logan, yes, been meaning to send out a proper update - will send out shortly, thank you!

Hey Greg! Thanks for reaching back out - let me put out a project update for all investors after next week! Very excited to share good news.

Hi John, yes! We've been updating our investors on WeFunder with the production of the MA unit in July and our last bit of filming for Korea unit next week. Although we're on track for the 2024 Sundance deadline, and if you or anyone you know is interested in helping us expedite our post production schedule, please let us know at islechildfilm@gmail.com!