120% of Principal + 40% of Net Profits
120% of Principal + 40% of Net Profits
100% of proceeds are paid to investors pro-rata until 120% of principal investment is returned. Thereafter investors earn 40% of Net Profits. This is a custom contract, see document for details.
|1||This film spotlights the homeless crisis currently affecting all major cities in the US.|
|2||The 20-minute proof-of-concept of Scrap played in 30+ film festivals in 2019, to wide acclaim.|
|3||The screenplay was a finalist in Sundance's Development Lab and top 10 in Final Draft's Big Break.|
|4||Anthony Rapp has a dedicated fan base from Rent and as the first openly gay character in Star Trek.|
|5||Director/Writer has acted in Castle, Grey's Anatomy, Criminal Minds, New Girl, and Masters of Sex.|
|6||You want to support an all-female directing, writing, and producing team, and elevate female voices.|
|7||Working with a smaller crew post-Covid keeps costs down and sets us up for a larger profit margin.|
|8||As award-winning alumni of 50+ film festivals, we have strong relationships within the industry.|
I am very excited to support this project. I've been investing in crowdfunding since the start, frequently through WeFunder, including in a variety of films. I don't take investing my money lightly, so I've done a ton of research and reflection over the years. I've come to realize what the films that would eventually be the most successful had in common. Most were centered around a script that was strong and somehow graded or proven. There were actors who were experienced, had seen some success, and had incredible talent - yes, I do go and watch at least a little of their past work to be sure (a social media following is a plus too). In most cases there is a short, or some other proof of concept that was compelling. And finally there was a team that not only had the experience to truly know their way around the industry, but also gave off a sense of genuine dedication for and excitement about the project.
SCRAP quite clearly checks all of these boxes, and more! I encourage you to do your own research - look at the prestige of the awards the script has won, and of the festivals where the short was accepted to and did well. Look at clips from these incredible actors' previous work and you'll see the amazing talent and range of Ms. Kerr and Mr. Rapp (who really do look related!). Read the pitch carefully, and the knowledge, excitement, and dedication of this team becomes clear.
In this case I got to take my research a little further. Before committing to me, and I to them, we needed to meet. And wow, was I struck by how incredibly motivated and excited they are, how much thought and planning they've put in, and most of all how much they respect investors and want this to work out for everyone.
There are never any guarantees with this type of investing, so make sure to be aware of the risks, but to me this opportunity has a lot in common with the most successful crowdfunding campaigns.
The idea for SCRAP began in 2017...
The Los Angeles Times reported that there had been a 75% increase in homelessness since 2000. As storytellers living in Hollywood, we could not help but notice the increasing number of people sleeping in their cars or in tents along the sidewalk.
This was a story that needed to be told.
In mid-2018, we shot the 20-minute short film of SCRAP in just four days.
It screened in over 30 film festivals around the world in 2019, including the Beverly Hills Film Festival, SCAD/Savannah Film Festival, Phoenix Film Festival, and SoHo Film Festival in New York.
Audiences abroad also responded: we were accepted into festivals in Russia, Austria, India, Mexico, and Australia!
We were nominated and won over two dozen awards, including Best Short, Best Actor, Best Actress, and Best Script, and the short film was a Finalist in Shore Script's Short Film Fund.
The critical acclaim that the short received was wonderful, but equally meaningful were the responses from individual audience members who saw their own experiences represented on screen and wanted more.
In response to that demand, Vivian Kerr wrote the feature script in 2019.
Our feature script has already garnered a lot of industry attention, placing in numerous contests:
Co-star Anthony Rapp (RENT, Star Trek: Discovery) has signed on to reprise his role of "Ben" in the feature film, and we're excited to bring this feature length version of the story to the screen!
Combined, we have over thirty years’ experience in the film industry, working for both major film studios and independent production companies. We have relationships with top agencies, festival programmers, and distributors.
We’ve done just about every job you can do on a film set.
Rachel’s even held a boom-mic. :)
In our experience, independent films make money when they are timely, marketable, and professionally produced.
SCRAP hits all three areas:
1) Timely — The homeless crisis and the growing wealth disparity is an issue that is at the forefront of American culture right now. COVID-19 has disproportionally impacted the most vulnerable. SCRAP is very much about finding empathy and understanding for our fellow human beings, and about how we can repair fractures even within our own families.
2) Marketable — SAG Award nominee and Obie Award winner Anthony Rapp has a tremendous following from both his iconic turn as Mark Cohen in the Broadway musical RENT, and his current role as Lt. Paul Stamets, the first openly gay character in the Star Trek franchise on CBS's hit show, Star Trek: Discovery.
3) Professional — We have participated in multiple successful fundraising campaigns in the past, using Kickstarter and Seed & Spark. We might be new to WeFunder, but we are not new to producing high-quality film work on a modest budget.
Here's a taste of how our film will look...
"I saw SCRAP at the Phoenix Film Festival and witnessed its profound impact it had on the audience. I hope to see Vivian and Rachel fully flesh out this story into a feature film as the topic is more timely and relevant than ever. It needs to be told and they're the team to do it."
—Gary King, Director & Screenwriter
"Rachel is the kind of producer who can take any challenge and turn it into a win. Her attention to detail results in issues being handled before you even know there’s a problem. Rachel’s enthusiasm for what she does has helped my projects run smoothly, and I consider her a key and valuable collaborator."
—Kai Soremekun, Filmmaker
"I've had the pleasure to work and collaborate with Vivian on several projects including the 8 episode web series and pilot WE ARE WITH THE BAND, which was successfully funded on Kickstarter and subsequently sold to several digital platforms. Vivian is a thoughtful and detail-oriented producer, writer, and actor who maximizes her budget while making sure to take good care of her crew and, most importantly, tell personal, compelling stories."
—Heleya de Barros, Director of Arts Education, Arts Corps
"I have cast Vivian in multiple sketches for Jimmy Kimmel Live! Not only is she incredibly talented, she is a versatile performer who is nothing but professional on set. Always great to work with!"
—Cecelia Pleva, Casting Director at Jimmy Kimmel Live!
"Rachel has the sensibility of an artist in her taste and selection of projects. And as a producer and leader, her attention to detail at every level of a project and organizational abilities are the top of her game. I would entrust any project to Rachel Stander and expect it to be handled with thorough care, integrity, innovation and higher standards."
—Karen Strassman, Actress / Voice Over Artist / Dialect Coach
"Vivian is a talented director, actor, and writer who seamlessly weaves authenticity with dynamic story telling. Her scripts are always captivating, and I am proud to support SCRAP."
—Samuel Duncan, Market Specialist, Clean Market
"SCRAP is a film that is exploring the story of homelessness in a way that I have never seen on screen before. I believe that this film will help raise awareness and initiate conversations about this issue that so many Americans are struggling with. I also admire this team of filmmakers and know they'll create something wonderful."
—Arthur Guzman, Investor
"As Vivian’s acting teacher and coach for the past six years, she is joyful, generous, serious, and successful. Vivian routinely pushes her boundaries. I have worked with hundreds of actors and Vivian stands out as one who is likely to make a major contribution to the art. I think that the late greats, Stella Adler and Sanford Meisner—with whom I had the opportunity to study—would celebrate Vivian’s imagination, discipline, sensitivity, and intelligence."
—Saxon Trainor, Acting Coach
"Rachel has impeccable taste and a leadership style that is calm and assured. Her strong work ethic and creative instincts elevate any project she’s involved with. She is that rare combination of creative, smart, funny, and extremely organized."
—Luz Beato, Public Defense Attorney
"Vivian is an artist that brings depth and nuance to every character she writes or plays. Having been lucky enough to witness Vivian as an actress and a writer, she has the goods to deliver a feature film that is captivating, poignant and heartfelt. "
—Cory Stonebrook, Actor & Writer
"With her writing, acting, and directing Vivian infuses her characters with remarkable intimacy and understanding."
—Lauren Mora, Actress & Producer
"Vivian Kerr directed me on our short film collaboration ALEX & AMY. She was passionate and energized on set, and there is a definite spark in her as a director that I know she will bring to SCRAP."
—ErinRose Widner, Actress, Writer, & Producer
"I worked with Rachel for many years. A dependable and dedicated leader, she has always been able to see the big picture and achieve the goals of our vision and mission. She uses thoughtful discretion when needed, and beyond being a creative mastermind, she is incredibly fun and memorable to work with."
—Tiffany Yee, Financial Advisor
"Vivian’s script reflects her gift of amazing storytelling. Her experience writing, acting, producing, and directing demonstrates that any project of hers will be successful!"
—Mary Kate Schroeter, Innovation Fellow, Chicago Dept of Family & Support Services
"Vivian is a problem solver—which is invaluable on set. Whether she is acting, directing, or producing, she can clearly and concisely see what needs to be done, and executes."
—Tiffany Trainer, Actress, Producer & VO Artist
SCRAP Film has financial statements ending August 31 2020. Our cash in hand is $0, as of October 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should 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 forward-looking statements contained in the following discussion and analysis.
We are a film production company making a feature film that explores a complicated brother-sister relationship against the backdrop of the homeless crisis in Los Angeles.
We intend for the film to be completed and have enjoyed a successful run at major festivals such as Sundance, Tribeca, and South by Southwest, have sold to a major indie film distributor for first-run theatrical release, and ultimately have sold to a digital and streaming platform such as Netflix, Amazon, or Hulu, with our investors earning profits from all distribution channels, although this cannot be guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Scrap Film LLC was incorporated in the State of California in August 2020.
Since then, we have:
Historical Results of Operations
Our company was organized in August 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Scrap Film LLC cash in hand is $0, as of August 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. Our intent is to be profitable in 18 months.
In the next 3-6 months, expenses will increase incrementally. We expect production on our film to begin in Spring 2021, which is when we will incur the majority of our expenses. We hope to release the film by January 2022, but we may have to push back if there are unexpected delays in production. It will a cost a total of $80,000 to produce the film. We hope (but cannot guarantee) to receive $500,000 in revenue through a minimum guarantee by our distributor. Outside of the funds raised by this Offering, the Company can be funded by capital from the founding team's personal savings.
To fund short-term operations, the team is planning to use their personal savings to finance any costs.
Filmmaking is a collaborative art form, requiring smooth coordination of multiple parties. Unforeseen forces, such as inclement weather, acts of God and misfortune can delay or otherwise interfere with production.
Filmmaking is competitive and artistic taste among audiences and festival programmers vary widely. The completion of the film in and of itself does not guarantee it will succeed in the marketplace, critically or financially.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Though we shall do our due diligence in hiring processes to ensure there are no hidden liabilities introduced by our cast and crew, the success of films is largely predicated on public perception of the performers, which can change through no fault of our own.
Film is distributed through the use of technology, the means of which has evolved steadily in the past decades. While currently the road to festival release, theatrical distribution, and streaming/OTT is clear, technology shifts may complicate or delay distribution.
With the COVID-19 epidemic, film production safety guidelines are still being developed and refined. Even following the strictest guidelines to ensure our cast and crew's safety, it is still possible for the virus to affect our production scheduling.
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